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.