HYDRO HOTEL EASTBOURNE PLC - Interim Results for the Half Year ended 30 April 2018 PR Newswire

                                               12 July 2018
                               Hydro Hotel, Eastbourne, Plc
                           (“Hydro Hotel” or the “Company”)

   Interim Results for the Half Year ended 30 April 2018



YOUR CHAIRMAN'S LETTER

Dear Shareholder,

SIX MONTHS TO 30 APRIL 2018

I am pleased to report on the company’s results for the six months to 30
April 2018. The total turnover for the six month period to 30 April 2018
was £1,514,627 compared to £1,519,004 for the same period the previous
year, a reduction of 0.29% (compared to an increase in the six months to
30 April 2017 of 14.62%).

The gross profit percentage for the period was 1.55% higher than in the
six months to 30 April 2017 and staff costs reduced by 2.7% compared to
the figure for the period to 30 April 2017 (17.10% increase in the half
year to 30 April 2017).
Overheads increased by 14.32% (18.05% increase in the half year ended 30
April 2017). As discussed at the AGM, essential repair work to the
fabric of the building has been undertaken during the six months to 30
April 2018. These necessary repair costs have contributed to an increase
in repair and maintenance costs of £53,918 in the six month period to 30
April 2018 compared to the same period the previous year, contributing
to the increase in overhead expenses. There is an increase in the loss
for the half year to 30 April 2018 to £199,834 compared to £152,741 for
the half year to 30 April 2017.

The bedroom refurbishment programme continued (29 rooms refurbished in
both the period ended 30 April 2018 and 30 April 2017) and there has
been significant capital investment in the gardens to further improve
the offering for our guests.

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
11 July 2018







STATEMENT OF COMPREHENSIVE INCOME

FOR THE HALF YEAR ENDED 30 APRIL 2018

                              Half year to  Half year to    Year ended

                              30 April 2018 30 April 2017 31 October 2017

                              (Unaudited)    (Unaudited)     (Audited)

                                   £              £              £

TURNOVER                       1,514,627      1,519,004      3,524,796

OPERATING (LOSS)/PROFIT        (203,817)      (156,789)       148,571

INTEREST RECEIVABLE              3,983          4,048          7,866

(LOSS)/PROFIT BEFORE TAXATION  (199,834)      (152,741)       156,437

TAXATION                           -              -           (29,717)

(LOSS)/PROFIT FOR PERIOD      £(199,834)     £(152,741)       £126,720

(Loss)/Earnings per share      (33.31)p       (25.46)p         21.12p



   


STATEMENT OF FINANCIAL POSITION

AT 30 APRIL 2018

                                    30 April 2018   30 April   31 October
                                                      2017        2017

                                     (Unaudited)   (Unaudited)  (Audited)

                                          £             £           £

FIXED ASSETS

Tangible Assets                     2,707,485      2,628,907    2,634,543

CURRENT ASSETS

Stocks                              32,883         37,312       27,719

Debtors                             112,685        126,184      112,616

Investment – 6 month notice deposit 200,000        200,000      200,568
account

Cash at bank and in hand            634,892        779,955      1,018,326

                                    980,460        1,143,451    1,359,229

CREDITORS

Amounts falling due within one year (563,668)      (614,919)    (543,661)

NET CURRENT ASSETS                  416,792        528,532      815,568

TOTAL ASSETS LESS

CURRENT LIABILITIES                 3,124,277      3,157,439    3,450,111

PROVISION FOR LIABILITIES           (85,022)       (71,811)     (85,022)

NET ASSETS                          £3,039,255     £3,085,628   £3,365,089

CAPITAL AND RESERVES

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

Revaluation reserve                 419,767        424,046      419,767

Profit and loss reserves            2,019,488      2,061,582    2,345,322

                                    £3,039,255     £3,085,628   £3,365,089



   


STATEMENT OF CASH FLOWS

FOR THE HALF YEAR ENDED 30 APRIL 2018

                               Half year to   Half year to  Year ended

                               30 April 2018  30 April 2017 31 October 2017

                                (Unaudited)    (Unaudited)   (Audited)

                                     £              £            £

NET CASH (USED IN)/INFLOW FROM   (187,991)      (157,760)     310,013
OPERATING ACTIVITIES (Note 1)

NET CASH GENERATED (USED IN)     (153,443)      (411,929)    (557,331)
INVESTING ACTIVITIES (Note 2)



   


FINANCING ACTIVITIES

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

NET (DECREASE) IN CASH AND CASH EQUIVALENTS
                                              (383,434)  (611,689)  (373,318)

CASH AND CASH EQUIVALENTS AT THE BEGINNING OF 1,018,326  1,391,644  1,391,644
THE PERIOD

CASH AND CASH EQUIVALENTS AT THE END OF THE   £634,892   £779,955   £1,018,326
PERIOD

RELATING TO:

Cash at bank and in hand                      £634,892   £779,955   £1,018,326



   


NOTES TO THE STATEMENT OF CASH FLOWS FOR THE HALF YEAR ENDED 30 APRIL
2018

                                   Half year to  Half year to Year ended

                                   30 April 2018   30 April   31 October 2017
                                                     2017

                                    (Unaudited)   (Unaudited)  (Audited)

                                         £             £              £

Note 1

CASH FLOWS FROM OPERATING

ACTIVITIES

(Loss)/profit after tax              (199,834)     (152,741)       126,720

Adjustments for:

Taxation                                 -             -           29,717

Depreciation                          91,392        86,794         182,298

Loss on disposal of fixed assets       3,574         7,679          7,035

Interest receivable                   (3,983)       (4,048)        (7,866)

OPERATING CASH FLOW BEFORE WORKING   (108,851)     (62,316)        337,904
CAPITAL CHANGES

MOVEMENTS IN WORKING CAPITAL

(Increase)/decrease in stocks         (5,164)       (3,449)         6,144

(Increase)/decrease in debtors         (69)         12,437         26,005

(Decrease) in creditors              (73,907)      (104,432)       (4,371)

Income taxes paid                        -             -          (55,669)

NET CASH (USED IN)/GENERATED FROM   £(187,991)    £(157,760)      £310,013
OPERATING ACTIVITIES



   


Note 2

INVESTING ACTIVITIES

Purchases of tangible fixed assets            (157,994)   (215,977)   (365,273)

Proceeds on disposal of tangible fixed assets     -           -          644

Interest received                               3,983       4,048       7,866

Proceeds from/(payment for) other investments    568      (200,000)   (200,568)

NET CASH FLOW (USED IN) INVESTING ACTIVITIES  £(153,443)  £(411,929)  £(557,331)



   


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 2017.

2 The earnings per share are based on a loss of £199,834 (2017 loss £152,741)
  being the loss on ordinary activities after taxation.

3 The movement in retained Profit and loss Reserves and Revaluation Reserves
  from £2,765,089 at 31 October 2017 to £2,439,255 at 30 April 2018 includes the
  loss for the period and dividends of £126,000 (£42,000 paid in the period and
  £84,000 accrued).

4 Creditors, amounts falling due within one year, 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 (2017 14p per share £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 11 July 2018, 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 2017, 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.