Interim Results for the Half Year ended 30 April 2023
12/07/2023 13:12
12 July 2023
Hydro Hotel, Eastbourne, Plc
(“Hydro Hotel” or the “Company”)
Interim Results for the Half Year ended 30 April 2023
YOUR CHAIRMAN'S LETTER
Dear Shareholder,
SIX MONTHS TO 30 APRIL 2023
I am pleased to report on the company’s results for the six months to 30
April 2023. The total turnover for the six month period to 30 April 2023 was
£1,799,816 compared to £1,822,411 for the same period the previous year, a
decrease of 1% (compared to an increase in the six months to 30 April 2022 of
882%).
The gross profit percentage for the period was 3% lower than in the six months
to 30 April 2022 and staff costs (excluding grants received for the
Coronavirus Job Retention Scheme) increased by 3% compared to the figure for
the period to 30 April 2022 (73% increase in the half year to 30 April 2022).
Overheads increased by 17% (77% increase in the half year ended 30 April
2022). Essential repair work to the fabric of the building was undertaken
during the six months to 30 April 2023, with only routine maintenance carried
out during the period to 30 April 2022. Consequently, there was an increase in
repair costs of £83,847 for this period compared to the same period in the
previous year, contributing to the increase in overhead expenses. This in turn
has led to a loss for the half year to 30 April 2023 of £171,469 compared to
a profit of £22,277 for the half year to 30 April 2022.
The updating of the décor and furniture of the Crystal Restaurant continued
during the period, together with the refurbishment of some bedrooms and public
areas. New solar panels were installed on the hotel roof, to save energy costs
and in keeping with the company’s green policy.
The Board and the management of the company continue to monitor cash resources
and have paid the dividend of £138,000 declared on 19 January 2023. No
further dividends were declared in the period.
The Board wishes to express its thanks to the management and staff of the
hotel for their co-operation and efforts during the period. The Hydro team
look forward to welcoming new and returning guests in this our 128th year of
operation.
Yours sincerely,
Graeme C King, MA, CA
11 July 2023
STATEMENT OF COMPREHENSIVE INCOME FOR THE HALF YEAR ENDED 30 APRIL 2023
Half year to Half year to Year ended
30 April 2023 30 April 2022 31 October 2022
(Unaudited) (Unaudited) (Audited)
£ £ £
TURNOVER 1,799,816 1,822,411 4,402,288
OPERATING (LOSS)/PROFIT (192,313) 17,580 429,300
INTEREST RECEIVABLE 20,844 4,697 15,911
(LOSS)/PROFIT BEFORE TAXATION (171,469) 22,277 445,211
TAXATION - - (108,511)
(LOSS)/PROFIT FOR PERIOD £(171,469) £22,277 £336,700
(Loss)/Earnings per share (28.58)p 3.71p 56.12p
STATEMENT OF FINANCIAL POSITION AT 30 APRIL 2023
30 April 2023 30 April 2022 31 October 2022
(Unaudited) (Unaudited) (Audited)
£ £ £
FIXED ASSETS
Tangible Assets 2,565,055 2,504,821 2,456,700
CURRENT ASSETS
Stocks 40,321 40,200 36,645
Debtors 156,803 124,131 214,131
Investments – 3 month notice deposit accounts 459,798 451,946 453,924
Cash at bank and in hand 1,146,320 1,353,406 1,585,647
1,803,242 1,969,683 2,290,347
CREDITORS
Amounts falling due within one year (761,721) (817,611) (831,002)
NET CURRENT ASSETS 1,041,521 1,152,072 1,459,345
TOTAL ASSETS LESS
CURRENT LIABILITIES 3,606,576 3,656,893 3,916,045
PROVISION FOR LIABILITIES (123,109) (94,380) (123,109)
NET ASSETS £3,483,467 £3,562,513 £3,792,936
CAPITAL AND RESERVES
Called up share capital 600,000 600,000 600,000
Revaluation reserve 398,372 402,651 398,372
Profit and loss reserves 2,485,095 2,559,862 2,794,564
£3,483,467 £3,562,513 £3,792,936
STATEMENT OF CASH FLOWS FOR THE HALF YEAR ENDED 30 APRIL 2023
Half year to Half year to Year ended
30 April 2023 30 April 2022 31 October 2022
(Unaudited) (Unaudited) (Audited)
£ £ £
NET CASH (USED IN)/INFLOW FROM OPERATING ACTIVITIES (Note 1) (133,517) 238,289 597,959
NET CASH (USED IN) INVESTING ACTIVITIES (Note 2) (167,810) (93,236) (136,665)
FINANCING ACTIVITIES
Dividends paid (138,000) (120,000) (204,000)
NET (DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS (439,327) 25,053 257,294
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD 1,585,647 1,328,353 1,328,353
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD £1,146,320 £1,353,406 £1,585,647
RELATING TO:
Cash at bank and in hand £1,146,320 £1,353,406 £1,585,647
NOTES TO THE STATEMENT OF CASH FLOWS FOR THE HALF YEAR ENDED 30 APRIL 2023
Half year to Half year to Year ended
30 April 2023 30 April 2022 31 October 2022
(Unaudited) (Unaudited) (Audited)
£ £ £
Note 1
CASH FLOWS FROM OPERATING
ACTIVITIES
(Loss)/profit after tax (171,469) 22,277 336,700
Adjustments for:
Taxation - - 108,511
Depreciation 95,450 92,102 192,714
Loss/(gain) on disposal of fixed assets 3,625 289 463
Interest receivable (20,844) (4,697) (15,911)
OPERATING CASH FLOW BEFORE WORKING CAPITAL CHANGES (93,238) 109,971 622,477
MOVEMENTS IN WORKING CAPITAL
(Increase)/decrease in stocks (3,676) (3,543) 12
Decrease/(increase) in debtors 57,328 (8,459) (98,459)
(Decrease)/increase in creditors (93,931) 140,320 183,783
Income taxes paid - - (109,854)
NET CASH (USED IN)/GENERATED FROM OPERATING ACTIVITIES £(133,517) £238,289 £597,959
Note 2 INVESTING ACTIVITIES
Purchase of tangible fixed assets (182,780) (97,001) (149,666)
Interest received 20,844 4,697 15,911
Payment for other investments (5,874) (932) (2,910)
NET CASH FLOW (USED IN) INVESTING ACTIVITIES £(167,810) £(93,236) £(136,665)
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 2022.
2 The earnings per share are based on a loss of £171,469 (2022 profit of £22,277) being the loss on ordinary activities after taxation.
3 The movement in retained Profit and Loss Reserves from £2,794,564 at 31 October 2022 to £2,485,095 at 30 April 2023 includes the loss for the period and dividends paid of £138,000 (2022: £120,000 paid in the period and £Nil accrued).
4 All dividends in 2023 were paid in the period and no accrual is included in creditors, amounts falling due within one year as at 30 April 2023 (2022: £120,000 dividends paid and no accrual included in creditors, amounts falling due within one year as at 30 April 2022).
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 2023, 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 2022, 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, UHY Hacker Young LLP, has not reviewed these unaudited interim accounts.
Enquiries:
Hydro Hotel, Eastbourne, Plc Sally Gausden Company Secretary Telephone: +44 1323 431 200
Peterhouse Capital Limited AQSE Corporate Adviser Mark Anwyl Telephone: +44 20 7469 0930
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(as defined in the European Union (Withdrawal) Act 2018).
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