HYDRO HOTEL EASTBOURNE PLC - Interim Results for the Half Year ended 30 April 2019 PR Newswire

9 July 2019

Hydro Hotel, Eastbourne, Plc

(“Hydro Hotel” or the “Company”)

Interim Results for the Half Year ended 30 April 2019

YOUR CHAIRMAN'S LETTER

Dear Shareholder,

SIX MONTHS TO 30 APRIL 2019

I am pleased to report on the Company’s results for the six months to 30 April 2019. The total turnover for the six-month period to 30 April 2019 was £1,553,553 compared to £1,514,627 for the same period the previous year, an increase of 2.57% (compared to a decrease in the six months to 30 April 2018 of 0.29%).

The gross profit percentage for the period was 0.65% higher than in the six months to 30 April 2018 and staff costs increased by 6.7% compared to the figure for the period to 30 April 2018 (2.7% decrease in the half year to 30 April 2018).

Overheads decreased by 15.02% (14.32% increase in the half year ended 30 April 2018). Essential repair work to the fabric of the building was undertaken during the six months to 30 April 2018. With no comparable repair work carried out during the period to 30 April 2019, there was a reduction in repairs costs of £103,533 for this period compared to the same period in the previous year.

There is a reduction in the loss for the half year to 30 April 2019 to £101,271 compared to £199,834 for the half year to 30 April 2018

The bedroom refurbishment programme continued (12 rooms refurbished in the period ended 30 April 2019 compared to 29 rooms in the period ended 30 April 2018) and the fire alarm system was upgraded.

The management team continue to explore new methods of promoting and marketing the enhanced facilities at our 4* status hotel.

Yours sincerely,
Graeme C King, MA, CA
9 July 2019


STATEMENT OF COMPREHENSIVE INCOME
FOR THE HALF YEAR ENDED 30 APRIL 2019



   


                               Half year to  Half year to      Year ended
                              30 April 2019 30 April 2018 31 October 2018
                                (Unaudited)   (Unaudited)       (Audited)

                                        GBP           GBP             GBP

TURNOVER                          1,553,553     1,514,627       3,658,461

OPERATING (LOSS)/PROFIT           (106,271)     (203,817)         185,135

INTEREST RECEIVABLE                   5,000         3,983           8,190

(LOSS)/PROFIT BEFORE TAXATION     (101,271)     (199,834)         193,325

TAXATION                                  -             -        (40,065)

(LOSS)/PROFIT FOR PERIOD         £(101,271)    £(199,834)        £153,260

(Loss)/Earnings per share          (16.88)p      (33.31)p          25.54p



   


STATEMENT OF FINANCIAL POSITION
AT 30 APRIL 2019



   


                                    30 April 2019 30 April 2018 31 October 2018
                                      (Unaudited)   (Unaudited)       (Audited)
                                              GBP           GBP             GBP

FIXED ASSETS

Tangible Assets                         2,823,218     2,707,485       2,620,992

CURRENT ASSETS

Stocks                                     27,502        32,883          30,438

Debtors                                   103,049       112,685         150,087

Investment – 6-month notice deposit       200,000       200,000         200,000
account

Cash at bank and in hand                  601,622       634,892       1,089,507

                                          932,173       980,460       1,470,032

CREDITORS

Amounts falling due within one year     (503,138)     (563,668)       (611,500)

NET CURRENT ASSETS                        429,035       416,792         858,532

TOTAL ASSETS LESS

CURRENT LIABILITIES                     3,252,253     3,124,277       3,479,524

PROVISION FOR LIABILITIES                (87,175)      (85,022)        (87,175)

NET ASSETS                             £3,165,078    £3,039,255      £3,392,349

CAPITAL AND RESERVES

Called up share capital                   600,000       600,000         600,000

Revaluation reserve                       415,488       419,767         415,488

Profit and loss reserves                2,149,590     2,019,488       2,376,861

                                       £3,165,078    £3,039,255      £3,392,349



   


STATEMENT OF CASH FLOWS
FOR THE HALF YEAR ENDED 30 APRIL 2019



   


                                      Half year to  Half year to      Year ended
                                     30 April 2019 30 April 2018 31 October 2018
                                       (Unaudited)   (Unaudited)       (Audited)

                                               GBP           GBP             GBP

NET CASH (USED IN)/INFLOW FROM            (67,538)     (187,991)         362,383
OPERATING ACTIVITIES (Note 1)

NET CASH GENERATED (USED IN)             (294,347)     (153,443)       (165,202)
INVESTING ACTIVITIES (Note 2)

FINANCING ACTIVITIES

Dividends paid                           (126,000)      (42,000)       (126,000)

NET (DECREASE) IN CASH AND CASH          (487,885)     (383,434)          71,181
EQUIVALENTS

CASH AND CASH EQUIVALENTS AT THE         1,089,507     1,018,326       1,018,326
BEGINNING OF THE PERIOD

CASH AND CASH EQUIVALENTS AT THE END      £601,622      £634,892      £1,089,507
OF THE PERIOD

RELATING TO:

Cash at bank and in hand                  £601,622      £634,892      £1,089,507



   


NOTES TO THE STATEMENT OF CASH FLOWS
FOR THE HALF YEAR ENDED 30 APRIL 2019



   


                            Half year to  Half year to                Year ended
                           30 April 2019 30 April 2018 31 October 2018 (Audited)
                             (Unaudited)   (Unaudited)

                                     GBP           GBP                       GBP

Note 1

CASH FLOWS FROM OPERATING

ACTIVITIES

(Loss)/profit after tax        (101,271)     (199,834)                   153,260

Adjustments for:

Taxation                               -             -                    40,065

Depreciation                      98,308        91,392                   183,937

(Gain)/Loss on disposal of       (1,187)         3,574                     3,574
fixed assets

Interest receivable              (5,000)       (3,983)                   (8,190)

OPERATING CASH FLOW BEFORE       (9,150)     (108,851)                   372,646
WORKING CAPITAL CHANGES

MOVEMENTS IN WORKING
CAPITAL

Decrease/(increase) in             2,936       (5,164)                   (2,719)
stocks

Decrease/(increase) in            47,038          (69)                  (37,471)
debtors

(Decrease)/increase in         (108,362)      (73,907)                    46,432
creditors

Income taxes paid                      -             -                  (16,505)

NET CASH (USED                 £(67,538)    £(187,991)                  £362,383
IN)/GENERATED FROM
OPERATING ACTIVITIES


Note 2

INVESTING ACTIVITIES

Purchases of tangible          (300,744)     (157,994)                 (173,960)
fixed assets

Proceeds on disposal of            1,397             -                         -
tangible fixed assets

Interest received                  5,000         3,983                     8,190

Proceeds from/(payment                 -           568                       568
for) other investments

NET CASH FLOW (USED IN)       £(294,347)    £(153,443)                £(165,202)
INVESTING ACTIVITIES



NOTES TO THE ACCOUNTS

1 The results are prepared on the basis of the accounting policies set out in the Company’s Annual Report and Accounts for the year ended 31 October 2018.

2 The earnings per share are based on a loss of £101,271 (2018 loss £199,834) being the loss on ordinary activities after taxation.

3 The movement in retained Profit and loss Reserves and Revaluation Reserves from £2,792,349 at 31 October 2018 to £2,565,078 at 30 April 2019 includes the loss for the period and dividends of £126,000 (£126,000 paid in the period and £Nil accrued).

4 All dividends in 2019 were paid in the period and no accrual is included in creditors, amounts falling due within one year as at 30 April 2019. The comparative creditors, amounts falling due within one year for 2018, include a dividend for the year ended 31 October 2017 declared by the directors and paid on 3 May 2018 at the rate of 14p per share of £84,000.

5 A copy of the interim report and accounts and the Chairman’s statement thereto, which were approved by the Board of Directors on 9 July 2019, will be posted to all registered shareholders shortly thereafter.

6 The financial information set out above does not constitute statutory accounts as defined in section 434 of the Companies Act 2006.  Statutory accounts for the year ended 31 October 2018, on which the report of the auditor was unqualified and did not contain a statement under section 498 of the Companies Act 2006, have been filed with the Registrar of Companies.

7 The Company’s auditor, Mazars LLP, has not reviewed these unaudited interim accounts.

Market Abuse Regulation (MAR) Disclosure

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014. Upon the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.