HYDP Hydro Hotel Eastbourne plc

 
TIDMHYDP 
 
HYDRO HOTEL, EASTBOURNE, PLC 
 
PRELIMINARY ANNOUNCEMENT OF THE FINAL RESULTS FOR THE YEAR ENDED 31 OCTOBER 
2017 
 
HIGHLIGHTS 
 
The profit for the financial year after taxation was GBP126,720 (2016 
GBP176,184). Turnover from the Hydro Hotel operation increased during the year 
by 9.9% (2016 increase of 2.5%). Earnings per share were 21.12p compared to 
29.36p for the previous year. 
 
The Company generated cash from operating activities of GBP365,682 (2016 
GBP447,085) and invested GBP365,273 in new fixed assets (2016 GBP79,184). 
During the year the Company paid ordinary dividends of GBP126,000 (2016 
GBP108,000). At the year end the Company had net current assets of GBP815,568 
(2016 GBP976,933). 
 
CHAIRMAN'S STATEMENT 
 
Results for year ended 31 October 2017 
 
I am pleased to report on the company's results for the year ended 31 October 
2017.  Sales for the year totalled GBP3,524,796, an increase of 9.9% on the 
GBP3,208,172 sales for the previous year (2016 2.5% increase). Operating profit 
for the year was GBP148,571 (2016 GBP213,657).  After interest receivable and 
the corporation tax charge, the post-tax profits for the year were GBP126,720 
(2016 GBP176,184).  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 maintain the dividend at 21p per share (2016 21p per share) absorbing 
GBP126,000 (2016 GBP126,000). 
 
Whilst the turnover of the company has increased, the hotel's operating costs 
have been impacted by the cost of acquiring business, with a larger number of 
hotel bookings made via Online Travel Agencies, and the increase in the 
National Minimum Wage as from 1 October 2016 and the National Living Wage as 
from 1 April 2017.  The upgrading of the public rooms and bedrooms has also led 
to an increase in repair costs for the year compared to the previous year. 
 
Developments since 31 October 2017 
 
Jonathan Owen, our General Manager, has provided the Board with his updated 
strategy for the hotel for the 2017/18 trading year. 
 
New marketing techniques will continue to be developed during the year to 
encourage direct bookings at the hotel, including the new online voucher 
purchasing system which went live in December 2017. 
 
With the public rooms' refurbishment now complete, and the outdoor wedding 
venue and terrace now available for use, the focus for 2018 is on increasing 
the number of weddings and other celebrations and functions at the hotel.  The 
cycle of bedroom refurbishments will also continue with 29 bedrooms having been 
updated in the 2017 financial year, and a further 29 bedrooms to be improved in 
the 2018 financial year. 
 
Essential repair work to the fabric of the building as identified in the Gould 
and Company reports will continue to be undertaken in 2018 but every effort 
will be made to minimise any obscuring of the façade of the building by 
scaffolding that may be required. 
 
Our Staff 
 
I would like to congratulate our General Manager, Jonathan Owen, on the work 
which resulted in the successful accomplishment of 4* status for the hotel 
during the year.  It is hoped that the enhanced status of the hotel will draw a 
wider clientele. 
 
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. 
 
 
                                         Graeme C King, MA, CA 
 
23 January 2018                          Chairman of the Board 
 
 
 
       STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 OCTOBER 2017 
 
                                                          2017           2016 
 
                                                          GBP            GBP 
 
Turnover 
 
Continuing operations                                  3,524,796      3,208,172 
 
Cost of sales                                         (3,177,905)    (2,771,219) 
 
Gross profit                                            346,891        436,953 
 
Administrative expenses                                (198,320)      (223,296) 
 
Operating profit                                        148,571        213,657 
 
Interest receivable and similar income                   7,866          10,695 
 
Profit before taxation                                  156,437        224,352 
 
Taxation                                                (29,717)       (48,168) 
 
Profit for the financial year                         GBP 126,720    GBP 176,184 
 
Earnings per share - continuing operations               21.12p         29.36p 
 
 
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 2017 
 
                                                          2017           2016 
 
                                                          GBP            GBP 
 
Fixed assets 
 
Tangible Assets                                        2,634,543      2,459,247 
 
Current assets 
 
Stocks                                                   27,719         33,863 
 
Debtors                                                 112,616        138,621 
 
Investments                                             200,568           - 
 
Cash at bank and in hand                               1,018,326      1,391,644 
 
                                                       1,359,229      1,564,128 
 
Creditors: Amounts falling due within one year         (543,661)      (587,195) 
 
Net current assets                                      815,568        976,933 
 
 
 
 
Total assets less current liabilities                  3,450,111      3,436,180 
 
Provisions for liabilities                              (85,022)       (71,811) 
 
Net assets                                           GBP 3,365,089  GBP 3,364,369 
 
Capital and reserves 
 
Ordinary Shares - Authorised and Issued: 
 
600,000 Shares of GPB1.00 each fully paid               600,000        600,000 
 
Revaluation reserve                                     419,767        424,046 
 
Profit and loss reserves                               2,345,322      2,340,323 
 
Total equity                                         GBP 3,365,089  GBP 3,364,369 
 
 
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 2017. These 
accounts have not to date been delivered to the Registrar of Companies. The 
Company's auditor, Mazars 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 7.0 pence per share (2017 7.0 pence) was paid on 18 
January 2018 to shareholders on the register on 22 December 2017. 
 
The Board have declared a second interim dividend for the year ended 31 October 
2017 of 14.0 pence per share (year ended 31 October 2016 14.0 pence) for 
payment on 3 May 2018 to shareholders on the register on 20 April 2018. The 
directors do not propose the payment of a final dividend. 
 
The Directors of Hydro Hotel, Eastbourne, plc accept responsibility for this 
announcement, which has been approved for the purposes of the Financial 
Services and Markets Act 2000 by Mazars Corporate Finance Limited, Tower Bridge 
House, St Katharine's Way, London, E1W 1DD,  who are authorized by the 
Financial Conduct Authority for investment business. 
 
For further information please contact: 
 
Hydro Hotel, Eastbourne, plc               Sally Gausden 
Telephone: (+44)(0) 1323 431200 
 
 
Mazars Corporate Finance Limited       Stephen Skeels             Telephone: 
(+44)(0) 2070 634000 
 
 
 
END 
 

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