Final Results for the year ended 31 October 2023
21/02/2024 17:01
21 February 2024
HYDRO HOTEL, EASTBOURNE, PLC
(“Hydro Hotel” or the “Company”)
FINAL RESULTS FOR THE YEAR ENDED 31 OCTOBER 2023
HIGHLIGHTS
The profit for the financial year after taxation was GBP235,945 (2022 profit
of GBP336,700). Turnover from the Hydro Hotel operation increased during the
year by 0.7% (2022 increased by 57.7%). Earnings per share were 39.32p
compared to 56.12p for the previous year.
The Company’s operating activities generated cash of GBP485,680 (2022
generated cash of GBP597,959) and it invested GBP273,488 in new fixed assets
(2022 GBP149,666). During the year the Company paid ordinary dividends of
GBP210,000 (2022 GBP204,000). At the year end the Company had net current
assets of GBP1,442,129 (2022 GBP1,459,345).
CHAIRMAN’S STATEMENT
Results for year ended 31 October 2023
I am pleased to present my first statement as Chairman and offer thanks to my
predecessor, Graeme King, who chaired the Company's proceedings for the past
18 years. I am delighted that Graeme has agreed to continue as a director, so
that we may continue to benefit from his knowledge and skills.
Sales for the year totalled £4,432,917, an increase of 0.7% on the
£4,402,288 sales for the previous year (2022 57.7% increase). Operating
profit for the year was £259,602 (2022 £429,300). After interest
receivable and the corporation tax charge, the post-tax profits for the year
were £235,945 (2022 £336,700). An interim dividend of 12p per share (2022
14p per share) absorbing £72,000 (2022 £84,000) was paid to shareholders in
October 2023. Taking into account the level of post-tax profits for the year
and with the company having strong reserves and assets, the board has decided
to declare a further interim dividend of 12p per share (2022 23p per share),
absorbing £72,000 (2022 £138,000), which will be paid on Wednesday 3 April
2024 to shareholders on the register on Friday 22 March 2024. The ex-dividend
date will be Thursday 21 March 2024.
The trading environment for the hotel and tourism industry continues to be
challenging with the continuing cost of living crisis and high inflation
impacting on operating costs and consumer demand. Despite careful monitoring
of food and drink costs the gross profit percentage was slightly down on 2022,
which also benefitted significantly from the reduction in the VAT rate from
20% to 12.5% during the 5 months to 31 March 2022 as part of the government's
support to the hospitality industry during the coronavirus pandemic. Repair
costs significantly increased in the year reflecting general maintenance to
the fabric of the building, including replacement of windows and fire doors as
well as major repair works to the restaurant roof.
Capital improvements at the hotel during the year included the installation of
solar panels on the roof, a major project for the hotel, and the ongoing
refurbishment of the Crystal Restaurant, as well as general refurbishment of a
number of bedrooms, upgrading of the wifi system and improved CCTV coverage.
Developments since 31 October 2023
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.
Updating of the Conservatory air conditioning will be undertaken in the coming
year together with replacement of the outside furniture for the Garden Suite
and Main Terrace. General 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 the 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.
Christopher J Bean LL.B (Hons)
20 February 2024 Chairman of the Board
STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 OCTOBER 2023
2023 2022
GBP GBP
Turnover
Continuing operations 4,432,917 4,402,288
Cost of sales (3,916,653) (3,694,357)
Gross profit 516,264 707,931
Administrative expenses (256,662) (285,729)
Other operating income - 7,098
Operating profit 259,602 429,300
Interest receivable and similar income 50,805 15,911
Profit before taxation 310,407 445,211
Taxation (74,462) (108,511)
Profit for the financial year GBP 235,945 GBP 336,700
Earnings per share - continuing operations 39.32p 56.12p
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 2023
2023 2022
GBP GBP
Fixed assets
Tangible Assets 2,525,316 2,456,700
Current assets
Stocks 40,028 36,645
Debtors 189,158 214,131
Investments 465,980 453,924
Cash at bank and in hand 1,626,588 1,585,647
2,321,754 2,290,347
Creditors : Amounts falling due within one year (879,625) (831,002)
Net current assets 1,442,129 1,459,345
Total assets less current liabilities 3,967,445 3,916,045
Provisions for liabilities (148,564) (123,109)
Net assets GBP 3,818,881 GBP 3,792,936
Capital and reserves
Ordinary Shares - Authorised and Issued:
600,000 Shares of GPB1.00 each fully paid 600,000 600,000
Revaluation reserve 394,093 398,372
Profit and loss reserves 2,824,788 2,794,564
Total equity GBP 3,818,881 GBP 3,792,936
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 2023.
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 12.0 pence per share (2022 23.0 pence paid) is to be
paid on 3 April 2024 to shareholders on the register on 22 March 2024. 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
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.
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