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Hydro Hotel Eastbourne Plc - Final Results

·6-min read

16 February 2021

HYDRO HOTEL, EASTBOURNE, PLC

PRELIMINARY ANNOUNCEMENT OF THE FINAL RESULTS FOR THE YEAR ENDED 31 OCTOBER 2020

HIGHLIGHTS

The Coronavirus pandemic has had a significant effect on the trading of the Company. The loss for the financial year after taxation was GBP139,289 (2019 profit of GBP224,516). Turnover from the Hydro Hotel operation decreased during the year by 40.2% (2019 increase of 2.1%). Earnings per share were (23.21)p compared to 37.42p for the previous year.

The Company’s operating activities absorbed cash of GBP159,871 (2019 generated cash of GBP504,842) and it invested GBP95,593 in new fixed assets (2019 GBP341,207). During the year the Company paid ordinary dividends of GBP54,000 (2019 GBP126,000). At the year end the Company had net current assets of GBP993,357 (2019 GBP852,027).

CHAIRMAN’S STATEMENT

Results for year ended 31 October 2020

I report on the Company’s results for the year ended 31 October 2020.

It has been a difficult trading year for the Company and particularly for the global hospitality industry as a result of the Coronavirus pandemic. Between 23 March 2020 and 4 July 2020, the hotel was closed as required by Government legislation. The hotel reopened on 4 July 2020, trading in accordance with Government guidance and restrictions. It was heartening how strongly trading resumed following the opening in July, showing the enduring appeal of the Hydro offering.

Sales for the year totalled £2,233,068, a decrease of 40.2% on the £3,733,698 sales for the previous year (2019 2.1% increase). Operating loss for the year was £179,382 (2019 profit of £271,809). After interest receivable, interest payable and the corporation tax credit, the post-tax losses for the year were £139,289 (2019 profit of £224,516).

Capital improvements at the hotel during the start of the year included the updating of the conservatory décor and furniture, and the installation of a new computer server.

To support the business through the Coronavirus pandemic, the Company has been in receipt of Government financial assistance. In view of this assistance, and the continuing uncertainty regarding the economic consequences of the pandemic, the Board of Directors has decided that it would not be appropriate to declare a dividend in respect of the year ended 31 October 2020.

Developments since 31 October 2020

There has been a further period of closure for the hotel from 5 November to 2 December 2020, with Tier 2 restrictions applied from that date to 25 December 2020, Tier 4 restrictions applied from 26 December 2020, and a further lockdown period announced as from 6 January 2021, with a subsequent closure of the hotel from that date.

Capital projects remain on hold, 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 our 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

15 February 2021

Chairman of the Board

STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 OCTOBER 2020

2020

2019

GBP

GBP

Turnover

Continuing operations

2,233,068

3,773,698

Cost of sales

(2,537,521)

(3,231,920)

Gross (loss)/profit

(304,453)

501,778

Administrative expenses

(238,548)

(229,969)

Other operating income

363,619

-

Operating (loss)/profit

(179,382)

271,809

Interest receivable and similar income

7,370

10,265

Interest payable and similar expenses

(2,354)

-

(Loss)/Profit before taxation

(174,366)

282,074

Taxation

35,077

(57,558)

(Loss)/Profit for the financial year

GBP (139,289)

GBP 224,516

Earnings per share - continuing operations

(23.21)p

37.42p

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 2020

2020

2019

GBP

GBP

Fixed assets

Tangible Assets

2,653,876

2,759,650

Current assets

Stocks

27,899

37,123

Debtors

128,926

129,098

Investments

200,000

200,000

Cash at bank and in hand

1,025,141

1,107,586

1,381,966

1,473,807

Creditors: Amounts falling due within one year

(388,609)

(621,780)

Net current assets

993,357

852,027

Total assets less current liabilities

3,647,233

3,611,677

Creditors: Amounts falling due after more than one year

(240,000)

-

Provisions for liabilities

(109,657)

(120,812)

Net assets

GBP 3,297,576

GBP 3,490,865

Capital and reserves

Ordinary Shares - Authorised and Issued:

600,000 Shares of GPB1.00 each fully paid

600,000

600,000

Revaluation reserve

406,930

411,209

Profit and loss reserves

2,290,646

2,479,656

Total equity

GBP 3,297,576

GBP 3,490,865

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 2020. 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

The Board do not propose the payment of any interim dividends for the year ended 31 October 2020. 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) 20 7469 0930

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.