Hydro Hotel, Eastbourne, Plc Final Results

 
TIDMHYDP 
 
HYDRO HOTEL, EASTBOURNE, PLC 
 
                 PRELIMINARY ANNOUNCEMENT OF THE FINAL RESULTS 
                      FOR THE YEAR ENDED 31 OCTOBER 2015 
 
HIGHLIGHTS 
 
The profit for the financial year after taxation was GBP103,617 (2014 
GBP94,959). Turnover from the Hydro Hotel operation increased during the year 
by 2.0% (2014 increase of 0.3%). Earnings per share were 17.27p compared to 
15.83p for the previous year. 
 
The Company generated cash from operating activities of GBP289,109 (2014 
GBP343,850) and invested GBP119,618 in new fixed assets (2014 GBP66,076). 
During the year the Company paid ordinary dividends of GBP108,000 (2014 
GBP108,000). At the year end the Company had net current assets of GBP818,033 
(2014 GBP750,868). 
 
CHAIRMAN'S STATEMENT 
 
Results for year ended 31 October 2015 
 
I am pleased to say that in the second half of the year we noted a firmer trend 
to business, reversing the reduction in sales of 2.7% in the first half of the 
year caused by the uncertainty in the run up to the general election. Sales for 
the year ended 31 October 2015 totalled GBP3,129,504, an increase of 2.0% on 
the GBP3,069,548 sales for the previous year (2014 increase 0.3%). Operating 
profit for the year increased to GBP120,006 (2014 GBP117,330). After interest 
receivable and the corporation tax charge, the post-tax profits for the year 
were GBP103,617 (2014 GBP94,959). While this is not quite sufficient to cover a 
maintained dividend again this year, the company has strong reserves and assets 
and so we have declared dividends totalling 18 pence per share absorbing 
GBP108,000, the same as the previous year. 
 
Trading conditions continue to be very competitive, and we have implemented the 
increase in the national minimum wage of 3% as from 1 October 2015, and on 1 
April 2016 the national living wage increase of 7.5% will come in to force for 
employees from age 25. Auto-enrolment pension contributions will be applied on 
top, and there are knock on effects on staff pay differentials to take into 
account. Management are reviewing our staffing structure and practices to 
ensure this significant increase in costs is manageable, and we will also be 
reviewing our pricing. 
 
Developments since 31 October 2015 
 
In midsummer 2015 we held a special celebratory weekend event to mark the 120th 
anniversary of the company and this proved successful. As you will have seen 
from the flyer sent out with your dividend in January, we are planning another 
midsummer package this year from 1st to 3rd July. 
 
The boot room has been completed, and we will be taking an active role in the 
Sussex Walking festival in the week beginning 24 September to promote this 
facility. 
 
We have installed a pop up cinema with a sophisticated audio-visual system in 
the Long Lounge to provide more in house entertainment for guests, and we can 
show feature films as well as theatre and opera productions. 
 
In view of the change of general manager taking place this year, we have 
deferred the start of the property renovation programme planned with Gould & 
Company until the next financial year so that the new general manager can 
review the proposals and integrate any business development ideas which he or 
she may wish to pursue. 
 
Our Staff 
 
As announced last November, Ian Turnbull, our Executive Director and General 
Manager of the hotel, has given notice to leave the company at the end of 
February. We are conducting a recruitment process to appoint a successor and I 
will update shareholders when the new person is in post. I thank Ian for his 
dedicated service to the company and wish him well in his new career. 
 
Mary Peck retires as a director by rotation at the AGM on 29 March 2016, and 
after more than 20 years on the Board she has decided not to seek 
re-appointment. I thank Mary for her contributions to the Board's policy 
discussions over the years, and wish her the best of health and happiness for 
her retirement and look forward to continuing to see her here at the Hydro as a 
supportive shareholder and customer. 
 
I wish to record our thanks to our management team and all our staff for their 
dedication to delivering Hydro's renowned quality of service which our 
customers value so much. 
 
                                         Graeme C King, MA, CA 
 
26 January 2016                          Chairman of the Board 
 
 
 
 
PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 OCTOBER 2015 
 
                                                             2015           2014 
 
                                                              GBP            GBP 
 
TURNOVER 
 
     Continuing operations                              3,129,504      3,069,548 
 
     Cost of sales                                    (2,820,812)    (2,763,894) 
 
GROSS PROFIT                                              308,692        305,654 
 
     Administrative expenses                            (188,686)      (188,324) 
 
OPERATING PROFIT                                          120,006        117,330 
 
BANK INTEREST RECEIVABLE                                   13,570          6,323 
 
PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION             133,576        123,653 
 
TAXATION ON PROFIT ON ORDINARY ACTIVITIES                (29,959)       (28,694) 
 
PROFIT FOR THE YEAR                                   GBP 103,617     GBP 94,959 
 
Earnings per share - continuing operations                 17.27p         15.83p 
 
 
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. 
 
BALANCE SHEET AT 31 OCTOBER 2015 
 
                                                               2015           2014 
 
                                                                GBP            GBP 
 
FIXED ASSETS 
 
Tangible Assets 
 
     Freehold land and buildings                          1,844,895      1,855,135 
 
     Furniture and equipment                                712,569        774,189 
 
                                                          2,557,464      2,629,324 
 
CURRENT ASSETS 
 
     Stocks                                                  29,189         34,323 
 
     Debtors                                                128,963        101,994 
 
     Cash at bank and in hand                             1,150,831      1,115,351 
 
                                                          1,308,983      1,251,668 
 
CREDITORS 
 
     Amounts falling due within one year                  (490,950)      (500,800) 
 
NET CURRENT ASSETS                                          818,033        750,868 
 
 
 
 
TOTAL ASSETS LESS CURRENT LIABILITIES                     3,375,497      3,380,192 
 
PROVISION FOR LIABILITIES AND CHARGES                      (79,312)       (79,624) 
 
TOTAL ASSETS LESS LIABILITIES                         GBP 3,296,185  GBP 3,300,568 
 
CAPITAL AND RESERVES 
 
     Ordinary Shares - Authorised and Issued: 
 
     600,000 Shares of GPB1.00 each fully paid              600,000        600,000 
 
     Revaluation Reserve                                    428,325        432,604 
 
     Profit and Loss Account                              2,267,860      2,267,964 
 
EQUITY SHAREHOLDERS' FUNDS                            GBP 3,296,185  GBP 3,300,568 
 
 
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 2015. 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 6.0 pence per share (2015 6.0 pence) was paid on 14 
January 2016 to shareholders on the register on 18 December 2015. 
 
The Board have declared a second interim dividend for the year ended 31 October 
2015 of 12.0 pence per share (year ended 31 October 2014 12.0 pence) for 
payment on 5 May 2016 to shareholders on the register on 22 April 2016. 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 
Crispin Freeman          Telephone: [phone] 
 
 
Mazars Corporate Finance Limited 
Stephen Skeels           Telephone: [phone] 
 
 
 
END 
 

(END) Dow Jones Newswires

January 27, 2016 06:00 ET (11:00 GMT)