Hydro Hotel Eastbourne Plc Final Results for the Year Ended 31 October 2021

 
TIDMHYDP 
 
7 February 2022 
 
                         HYDRO HOTEL, EASTBOURNE, PLC 
 
                       ("Hydro Hotel" or the "Company") 
 
               FINAL RESULTS FOR THE YEAR ENDED 31 OCTOBER 2021 
 
HIGHLIGHTS 
 
The Coronavirus pandemic has had a significant effect on the trading of the 
Company. The profit for the financial year after taxation was £362,660 (2020 
loss of £139,289). Turnover from the Hydro Hotel operation increased during the 
year by 25.0% (2020 decrease of 40.2%). Earnings per share were 60.44p compared 
to (23.21)p for the previous year. 
 
The Company's operating activities generated cash of £829,213 (2020 absorbed 
cash of £181,069) and it invested £39,987 in new fixed assets (2020 £95,593). 
During the year the Company paid  ordinary dividends of £Nil (2020 £54,000). At 
the year end the Company had net current assets of £1,254,405 (2020 £993,357). 
 
CHAIRMAN'S STATEMENT 
 
Results for year ended 31 October 2021 
 
I report on the company's results for the year ended 31 October 2021. 
 
It has been a difficult trading year for the Company and particularly for the 
global hospitality industry as a result of the Coronavirus pandemic. The 
company's trade has been impacted by the effects of the pandemic which resulted 
in the closure of the hotel from 5 November 2020 to 2 December 2020 and Tier 2 
restrictions being applied from that date to 25 December 2020. Tier 4 
restrictions were applied from 26 December 2020 with a further lockdown period 
and closure of the hotel from 6 January 2021 to 16 May 2021 in accordance with 
the Government legislation and guidelines. The hotel reopened on 17 May 2021, 
trading in accordance with Government guidance and restrictions. It was 
pleasing to note how strongly trading resumed following the reopening in May. 
 
Sales for the year totalled £2,791,482, an increase of 25.0% on the £2,233,068 
sales for the previous year (2020  40.2% decrease). Operating profit for the 
year was £461,312 (2020  loss of £179,382).  After interest receivable, 
interest payable and the corporation tax charge, the post-tax profit for the 
year was £362,660 (2020  loss of £139,289). Taking into account the level of 
post-tax profits for the year, the Board decided to declare a dividend of 20p 
per share (2020 Nil paid) absorbing £120,000 (2020: Nil paid). 
 
Capital improvements at the hotel during the year included the installation of 
walk in showers for a limited number of rooms, and a new telephone system. The 
redecoration of a number of bedrooms and major repairs to the roof were also 
undertaken. 
 
To support the business through the Coronavirus pandemic, the company took 
advantage of Government financial assistance. The Coronavirus Business 
Interruption Loan was repaid during the year. 
 
Developments since 31 October 2021 
 
There have been no further periods of closure for the hotel during 2021, 
however the Board and management are mindful that further restrictions may be 
imposed by Government to curb the spread of Coronavirus and all necessary 
action will be undertaken at the appropriate time to protect and maintain the 
company's business. 
 
No new capital projects are due to be undertaken but repair work to maintain 
the fabric of the building and room stock continues and new marketing 
techniques will continue to be developed during the year to encourage direct 
bookings at the hotel. 
 
Our Staff 
 
I would like to thank our General Manager, Jonathan Owen, for his prompt and 
creative responses to the challenges brought by the Coronavirus pandemic and 
the ongoing challenges for the hotel and tourism industry. 
 
 I wish also to record 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 very 
difficult circumstances. 
 
                                         Graeme C King, MA, CA 
 
4 February 2022                          Chairman of the Board 
 
 
 
       STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 OCTOBER 2021 
 
                                                          2021           2020 
 
                                                           £              £ 
 
Turnover 
 
Continuing operations                                  2,791,482      2,233,068 
 
Cost of sales                                         (2,444,700)    (2,537,521) 
 
Gross profit/(loss)                                     346,782       (304,453) 
 
Administrative expenses                                (237,241)      (238,548) 
 
Other operating income                                  351,771        363,619 
 
Operating profit/(loss)                                 461,312       (179,382) 
 
Interest receivable and similar income                   5,000          7,370 
 
Interest payable and similar expenses                   (9,286)        (2,354) 
 
Profit/(loss) before taxation                           457,026       (174,366) 
 
Taxation                                                (94,366)        35,077 
 
Profit/(loss) for the financial year                    £362,660      £(139,289) 
 
Earnings per share - continuing operations               60.44p        (23.21)p 
 
 
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 2021 
 
                                                          2021           2020 
 
                                                           £              £ 
 
Fixed assets 
 
Tangible Assets                                        2,500,211      2,653,876 
 
Current assets 
 
Stocks                                                   36,657         27,899 
 
Debtors                                                 115,672        128,926 
 
Investments                                             451,014        200,000 
 
Cash at bank and in hand                               1,328,353      1,025,141 
 
                                                       1,931,696      1,381,966 
 
Creditors: Amounts falling due within one year         (677,291)      (388,609) 
 
Net current assets                                     1,254,405       993,357 
 
 
 
 
Total assets less current liabilities                  3,754,616      3,647,233 
 
Creditors: Amounts falling due after more than one         -          (240,000) 
year 
 
Provisions for liabilities                              (94,380)      (109,657) 
 
Net assets                                             £3,660,236     £3,297,576 
 
Capital and reserves 
 
Ordinary Shares - Authorised and Issued: 
 
600,000 Shares of GPB1.00 each fully paid               600,000        600,000 
 
Revaluation reserve                                     402,651        406,930 
 
Profit and loss reserves                               2,657,585      2,290,646 
 
Total equity                                           £3,660,236     £3,297,576 
 
 
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 2021. 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 20.0 pence per share (2020 Nil paid) was paid on 13 
January 2022 to shareholders on the register on 31 December 2021. 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). 
 
 
 
END 
 
 

(END) Dow Jones Newswires

February 07, 2022 07:01 ET (12:01 GMT)