HYDRO HOTEL, EASTBOURNE, PLC

PRELIMINARY ANNOUNCEMENT OF THE FINAL RESULTS FOR THE YEAR ENDED 31 OCTOBER 2018

HIGHLIGHTS

The profit for the financial year after taxation was GBP153,260 (2017 GBP126,720). Turnover from the Hydro Hotel operation increased during the year by 3.8% (2017 increase of 9.9%). Earnings per share were 25.54p compared to 21.12p for the previous year.

The Company generated cash from operating activities of GBP378,888 (2017 GBP365,682) and invested GBP173,960 in new fixed assets (2017 GBP365,273). During the year the Company paid ordinary dividends of GBP126,000 (2017 GBP126,000). At the year end the Company had net current assets of GBP858,532 (2017 GBP815,568).

CHAIRMAN’S STATEMENT

Results for year ended 31 October 2018

I am pleased to report on the company’s results for the year ended 31 October 2018.  Sales for the year totalled GBP3,658,461, an increase of 3.8% on the GBP3,524,796 sales for the previous year (2017 9.9% increase). Operating profit for the year was GBP185,135 (2017 GBP148,571).  After interest receivable and the corporation tax charge, the post-tax profits for the year were GBP153,260 (2017 GBP126,720).  Taking into account the level of post-tax profits for the year and with the company having strong reserves and assets, the Board decided to maintain the dividend at 21p per share (2017 21p per share) absorbing GBP126,000 (2017 GBP126,000).

Whilst the turnover of the company has increased, the hotel’s operating costs have been impacted by the cost of acquiring business, with a large number of hotel bookings still being made via Online Travel Agencies. The upgrading of bedrooms and essential repair work to the fabric of the building has again led to an increase in repair costs for the year compared to the previous year. However, careful monitoring of food and drink costs and allocation of staff led to an increase in the post-tax profits compared to the previous year.

Developments since 31 October 2018

New marketing techniques will continue to be developed during the year to encourage direct bookings at the hotel, aided by the new online booking system on the company’s website, introduced in September 2018.

With the public rooms’ refurbishment complete, and the outdoor wedding venue and terrace available for use, the Board is pleased to note an increase in the number of forward bookings for weddings and other celebrations at the hotel.

The cycle of bedroom refurbishments will continue. 11 bedrooms were updated in the 2018 financial year, and a further 12 bedrooms will be refurbished in the 2019 financial year.

The hotel’s fire alarm system will be upgraded during the current accounting year and management plan to refurbish the Garden Suite bar area.

Our Staff

I would like to congratulate our General Manager, Jonathan Owen, on an improved profit for the hotel, despite ongoing challenges for the hotel and tourism industry.

I wish also to record our thanks to our management team and all our staff for their dedication to the hotel.  All staff continued to deliver the Hydro’s renowned quality of service which our customers value so much.

                Graeme C King, MA, CA

29 January 2019 Chairman of the Board

   

 STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 OCTOBER
                               2018

                                              2018        2017

                                               GBP         GBP

Turnover

Continuing operations                      3,658,461   3,524,796

Cost of sales                              (3,244,833) (3,177,905)

Gross profit                               413,628     346,891

Administrative expenses                    (228,493)   (198,320)

Operating profit                           185,135     148,571

Interest receivable and similar income     8,190       7,866

Profit before taxation                     193,325     156,437

Taxation                                   (40,065)    (29,717)

Profit for the financial year              GBP 153,260 GBP 126,720

Earnings per share - continuing operations   25.54p      21.12p

Earnings per share have been calculated using 600,000 shares, being the weighted average number of shares for both years. The company has no potential ordinary shares, therefore basic and diluted earnings per share is the same figure.

      STATEMENT OF FINANCIAL POSITION AS AT 31 OCTOBER 2018

                                                 2018      2017

                                                  GBP       GBP

Fixed assets

Tangible Assets                                2,620,992 2,634,543

Current assets

Stocks                                         30,438    27,719

Debtors                                        150,087   112,616

Investments                                    200,000   200,568

Cash at bank and in hand                       1,089,507 1,018,326

                                               1,470,032 1,359,229

Creditors: Amounts falling due within one year (611,500) (543,661)

Net current assets                             858,532   815,568

   

Total assets less current liabilities     3,479,524     3,450,111

Provisions for liabilities                (87,175)      (85,022)

Net assets                                GBP 3,392,349 GBP 3,365,089

Capital and reserves

Ordinary Shares - Authorised and Issued:

600,000 Shares of GPB1.00 each fully paid 600,000       600,000

Revaluation reserve                       415,488       419,767

Profit and loss reserves                  2,376,861     2,345,322

Total equity                              GBP 3,392,349 GBP 3,365,089

STATUS OF FINANCIAL INFORMATION

The financial information set out above does not constitute statutory accounts as defined in section 434 of the Companies Act 2006. This has, however, been extracted from the statutory accounts for the year ended 31 October 2018. These accounts have not to date been delivered to the Registrar of Companies. The Company’s auditor, Mazars LLP, has issued an unqualified audit report which does not contain a statement under section 498 of the Companies Act 2006 in respect of these accounts.

DIVIDEND ANNOUNCEMENT

An interim dividend of 7.0 pence per share (2018 7.0 pence) was paid on 17 January 2019 to shareholders on the register on 21 December 2018.

The Board have declared a second interim dividend for the year ended 31 October 2018 of 14.0 pence per share (year ended 31 October 2017 14.0 pence) for payment on 2 May 2019 to shareholders on the register on 23 April 2019. The directors do not propose the payment of a final dividend.

The Directors of Hydro Hotel, Eastbourne, plc accept responsibility for this announcement.

For further information please contact:

Hydro Hotel, Eastbourne, plc               Sally Gausden               Telephone: (+44)(0) 1323 431200

Peterhouse Capital Limited                 Mark Anwyl                   Telephone: (+44)(0) 2074 690930