Hydro Hotel Eastbourne Plc - Final Results For The Year Ended 31 October 2022

Hydro Hotel Eastbourne Plc - Final Results For The Year Ended 31 October 2022

PR Newswire

London, February 22

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: [phone]

Peterhouse Capital Limited Mark Anwyl Telephone: [phone]

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).