Hydro Hotel, Eastbourne, Plc Final Results

 
TIDMHYDP 
 
HYDRO HOTEL, EASTBOURNE, PLC 
 
PRELIMINARY ANNOUNCEMENT OF THE FINAL RESULTS FOR THE YEAR ENDED 31 OCTOBER 
2016 
 
HIGHLIGHTS 
 
The profit for the financial year after taxation was GBP176,184 (2015 
GBP103,617). Turnover from the Hydro Hotel operation increased during the year 
by 2.5% (2015 increase of 2.0%). Earnings per share were 29.36p compared to 
17.27p for the previous year. 
 
The Company generated cash from operating activities of GBP447,085 (2015 
GBP289,109) and invested GBP79,184 in new fixed assets (2015 GBP119,618). 
During the year the Company paid ordinary dividends of GBP108,000 (2015 
GBP108,000). At the year end the Company had net current assets of GBP976,933 
(2015 GBP818,033). 
 
CHAIRMAN'S STATEMENT 
 
Results for year ended 31 October 2016 
 
I am pleased to report an improvement in the company's results for the year 
ended 31 October 2016.  Sales for the year totalled GBP3,208,172, an increase 
of 2.5% on the GBP3,129,504 sales for the previous year (2015 2.0% increase). 
Operating profit for the year increased to GBP213,657 (2015 GBP120,006).  After 
interest receivable and the corporation tax charge, the post-tax profits for 
the year were GBP176,184 (2015 GBP103,617).  With the improvement in post-tax 
profits for the year and with the company having strong reserves and assets, 
the Board decided to increase the dividend to 21p per share (2015 18p per 
share) absorbing GBP126,000 (2015 GBP108,000). 
 
Management are mindful of the impact on the hotel's operating costs of the 
increase in the national minimum wage as from 1 October 2016 and further 
increases to the national living wage as from 1 April 2017, and will be 
reviewing accordingly the pricing of the hotel's services. 
 
Developments since 31 October 2016 
 
The Board was pleased to welcome Jonathan Owen to the hotel as our new general 
manager.  Jonathan started work at the hotel in May 2016 and was invited by the 
Board to develop a strategy for the hotel for the 2016/17 trading year. 
 
Since joining the hotel, Jonathan has reviewed the sales operations and has 
introduced new marketing techniques from which the hotel has benefited in the 
period to 31 October 2016 and into the new financial year. 
 
Jonathan plans to increase the number of weddings and other celebrations and 
functions held and has commenced a programme of refurbishment of the hotel's 
public areas to enhance our offer to these markets.  The Drawing Room and 
Wedgwood Room were refurbished during the year ended 31 October 2016 and the 
Garden Suite will be refurbished early in 2017.  The cycle of bedroom 
refurbishments will also recommence in 2017, now that Jonathan has determined 
his priorities. 
 
Essential repair work to the fabric of the building as identified in the Gould 
and Company reports will be undertaken in 2017 but every effort will be made to 
minimise any obscuring of the façade of the building by scaffolding that may be 
required. 
 
The Board wishes to advise shareholders that, as from 1 January 2017, ISDX will 
have changed its name to NEX Exchange. 
 
Our Staff 
 
The Board looks to refreshing its membership, to ensure an appropriate range of 
skills and experience and we were pleased to appoint our company secretary, Mrs 
Sally A Gausden BA FCA to the Board as a non-executive director as from 13 
December 2016. 
 
As previously noted, we welcomed Jonathan Owen to the hotel as our new general 
manager in May 2016.  I wish to record our thanks to our management team and 
all of our staff for their dedication to the hotel and particularly to those 
members of staff who took on extra responsibilities in the interregnum between 
managers.  All staff continued to deliver the Hydro's renowned quality of 
service which our customers value so much and this is reflected in our results 
for the year. 
 
                                                 Graeme C King, MA, CA 
 
24 January 2017                                  Chairman of the Board 
 
 
                      STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 OCTOBER 2016 
 
                                                                       2016            2015 
 
                                                                        GBP            GBP 
 
                 Turnover 
 
                 Continuing operations                                  3,208,172      3,129,504 
 
                 Cost of sales                                        (2,771,219)    (2,820,812) 
 
                 Gross profit                                             436,953        308,692 
 
                 Administrative expenses                                (223,296)      (188,686) 
 
                 Operating profit                                         213,657        120,006 
 
                 Interest receivable and similar income                    10,695         13,570 
 
                 Profit before taxation                                   224,352        133,576 
 
                 Taxation                                                (48,168)       (29,959) 
 
                 Profit for the financial year                        GBP 176,184    GBP 103,617 
 
                 Earnings per share - continuing operations                29.36p         17.27p 
 
 
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 2016 
 
                                                        2016           2015 
 
                                                        GBP            GBP 
 
Fixed assets 
 
Tangible Assets                                         2,459,247      2,557,464 
 
Current assets 
 
Stocks                                                     33,863         29,189 
 
Debtors                                                   138,621        128,963 
 
Investments                                                     -        500,000 
 
Cash at bank and in hand                                1,391,644        650,831 
 
                                                        1,564,128      1,308,983 
 
Creditors: Amounts falling due within one year          (587,195)      (490,950) 
 
Net current assets                                        976,933        818,033 
 
 
 
 
Total assets less current liabilities                     3,436,180      3,375,497 
 
Provisions for liabilities                                 (71,811)       (79,312) 
 
Net assets                                            GBP 3,364,369  GBP 3,296,185 
 
Capital and reserves 
 
Ordinary Shares - Authorised and Issued: 
 
600,000 Shares of GPB1.00 each fully paid                   600,000        600,000 
 
Revaluation reserve                                         424,046        428,325 
 
Profit and loss reserves                                  2,340,323      2,267,860 
 
Total equity                                          GBP 3,364,369  GBP 3,296,185 
 
 
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 2016. 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 (2016 6.0 pence) was paid on 19 
January 2017 to shareholders on the register on 23 December 2016.. 
 
The Board have declared a second interim dividend for the year ended 31 October 
2016 of 14.0 pence per share (year ended 31 October 2015 12.0 pence) for 
payment on 4 May 2017 to shareholders on the register on 20 April 2017. Please 
note that this combined dividend is not a final dividend as stated in the 
announcement to the market in December 2016, but an interim dividend as 
declared by the Board 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: [phone] 
 
 
Mazars Corporate Finance Limited       Stephen Skeels             Telephone: 
([phone] 
 
 
 
END 
 

(END) Dow Jones Newswires

January 25, 2017 05:02 ET (10:02 GMT)