Final Results For The Year Ended 31 October 2022
22/02/2023 17:29
22 February 2023
HYDRO HOTEL, EASTBOURNE, PLC
(“Hydro Hotel” or the “Company”)
FINAL RESULTS FOR THE YEAR ENDED 31 OCTOBER 2022
HIGHLIGHTS
The profit for the financial year after taxation was GBP336,700 (2021 profit
of GBP362,660). Turnover from the Hydro Hotel operation increased during the
year by 57.7% (2021 increased by 25.0%). Earnings per share were 56.12p
compared to 60.44p for the previous year.
The Company’s operating activities generated cash of GBP597,959 (2021
generated cash of GBP829,213) and it invested GBP149,666 in new fixed assets
(2021 GBP39,987). During the year the Company paid ordinary dividends of
GBP204,000 (2021 GBP Nil). At the year end the Company had net current assets
of GBP1,459,345 (2021 GBP1,254,405).
CHAIRMAN’S STATEMENT
Results for year ended 31 October 2022
I report on the company’s results for the year ended 31 October 2022.
It was another challenging trading year for the Company with the ongoing
Coronavirus pandemic, the cost of living crisis and the general effects of
Brexit on supply sources. However, I am pleased to announce that sales
recovered in the year totalling £4,402,288, an increase of 57.7% on the
£2,791,482 sales for the previous year (2021 25.0% increase). Operating
profit for the year was £429,300 (2021 £461,312). After interest
receivable and the corporation tax charge, the post-tax profits for the year
were £336,700 (2021 £362,660). 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 pay a dividend of 14p per share in October 2022 absorbing
£84,000, reinstating the second interim dividend based on the results for the
year ended 31 October 2019, declared for payment in April 2020 and then
cancelled due to the Coronavirus pandemic. The Board also decided to declare a
dividend of 23p per share (2021 20p per share) absorbing £138,000 (2021
£120,000).
The trading environment for the company continues to be challenging. Despite
careful monitoring of food and drink costs the gross profit percentage was
slightly down on the previous year but increased sales meant that overall
profitability was up. Repair costs increased in the year reflecting the
implementation of window replacement and general maintenance and refurbishment
projects which were delayed during the Coronavirus pandemic.
Capital improvements at the hotel during the year included the refurbishment
of the Orangery, the Crystal Restaurant and Wedgewood patio, as well as
general refurbishment of some bedroom interiors.
There have been no periods of closure since last financial year but the Board
and management are mindful that future restrictions may be imposed by
Government to curb the spread of new variants of the Coronavirus and all
necessary action will be undertaken at the appropriate time to protect and
maintain the company’s business.
Developments since 31 October 2022
New marketing techniques will continue to be developed during the year to
further encourage direct bookings at the hotel, which show an increase, year
on year.
Further updating of the décor and furniture of the Crystal Restaurant will be
undertaken in the coming year and it is planned to instal solar panels at the
hotel, in keeping with the company’s green policy and to save energy costs.
Refurbishment of bedrooms and public areas will continue.
Our Staff
I would like to congratulate our General Manager, Jonathan Owen, on the
results achieved for the hotel this year, 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 during these challenging times. All staff
continued to deliver a high quality of service to the hotel’s customers in
difficult circumstances.
Graeme C King, MA, CA
21 February 2023 Chairman of the Board
STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 OCTOBER 2022
2022 2021
GBP GBP
Turnover
Continuing operations 4,402,288 2,791,482
Cost of sales (3,694,357) (2,444,700)
Gross profit 707,931 346,782
Administrative expenses (285,729) (237,241)
Other operating income 7,098 351,771
Operating profit 429,300 461,312
Interest receivable and similar income 15,911 5,000
Interest payable and similar expenses - (9,286)
Profit before taxation 445,211 457,026
Taxation (108,511) (94,366)
Profit for the financial year GBP 336,700 GBP 362,660
Earnings per share - continuing operations 56.12p 60.44p
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 2022
2022 2021
GBP GBP
Fixed assets
Tangible Assets 2,456,700 2,500,211
Current assets
Stocks 36,645 36,657
Debtors 214,131 115,672
Investments 453,924 451,014
Cash at bank and in hand 1,585,647 1,328,353
2,290,347 1,931,696
Creditors : Amounts falling due within one year (831,002) (677,291)
Net current assets 1,459,345 1,254,405
Total assets less current liabilities 3,916,045 3,754,616
Provisions for liabilities (123,109) (94,380)
Net assets GBP 3,792,936 GBP 3,660,236
Capital and reserves
Ordinary Shares - Authorised and Issued:
600,000 Shares of GPB1.00 each fully paid 600,000 600,000
Revaluation reserve 398,372 402,651
Profit and loss reserves 2,794,564 2,657,585
Total equity GBP 3,792,936 GBP 3,660,236
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 2022.
These accounts have not to date been delivered to the Registrar of Companies.
The Company’s auditor, UHY Hacker Young 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 23.0 pence per share (2021 20.0 pence paid) is to be
paid on 4 April 2023 to shareholders on the register on 17 March 2023. 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
Market Abuse Regulation (MAR) Disclosure
This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation EU 596/2014 as it forms part of retained EU law
(as defined in the European Union (Withdrawal) Act 2018).
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