Hydro Hotel Eastbourne Plc - Interim Results for the Half Year ended 30 April 2022

14 July 2022

Hydro Hotel, Eastbourne, Plc

(“Hydro Hotel” or the “Company”)

Interim Results for the Half Year ended 30 April 2022

YOUR CHAIRMAN'S LETTER
Dear Shareholder,
SIX MONTHS TO 30 APRIL 2022
I report on the company’s results for the six months to 30 April 2022, which reflect trading following the removal of all restrictions imposed by the Government due to the Coronavirus pandemic. The total turnover for the six month period to 30 April 2022 was £1,822,411 compared to £185,579 for the same period the previous year, an increase of 882% (compared to a decrease in the six months to 30 April 2021 of 84%).
The gross profit percentage for the period was 3% higher than in the six months to 30 April 2021 and staff costs (excluding grants received for the Coronavirus Job Retention Scheme) increased by 73% as the hotel reopened and business recovered, compared to the figure for the period to 30 April 2021 (36% decrease in the half year to 30 April 2021). Overheads increased by 77% reflecting the reopening after the Coronavirus pandemic (35% decrease in the half year ended 30 April 2021). Only routine maintenance to the fabric of the building was undertaken during the six months to 30 April 2022, reflecting uncertainty over future periods of closure from the Coronavirus pandemic. Consequently, repairs were at a similar level to the six months ended 30 April 2021. The profit for the half year to 30 April 2022 was £22,277 compared to a loss of £383,183 for the half year to 30 April 2021, when the hotel was closed for much of the period due to the Coronavirus pandemic.
The Board and the management of the company continue to monitor cash resources and have paid the dividend of £120,000 declared on 21 December 2021. No further dividends were declared in the period.
The Board wishes to express its thanks to the management and staff of the hotel for their co-operation and efforts in building up the business following the exceptional circumstances of the Coronavirus pandemic. The Hydro team look forward to welcoming new and returning guests in this our 127th year of operation.
Yours sincerely, Graeme C King, MA, CA 12 July 2022
STATEMENT OF COMPREHENSIVE INCOME
FOR THE HALF YEAR ENDED 30 APRIL 2022
	Half year to		Half year to			Year ended
	30 April 2022		30 April 2021			31 October 2021
	(Unaudited)			(Unaudited)			(Audited)
	£			£			£
TURNOVER	1,822,411			185,579			2,791,482
OPERATING PROFIT/(LOSS)	17,580			(385,397)			461,312
INTEREST RECEIVABLE	4,697			2,214			5,000
INTEREST PAYABLE	-			-			(9,286)
PROFIT/(LOSS) BEFORE TAXATION	22,277			(383,183)			457,026
TAXATION	-			-			(94,366)
PROFIT/(LOSS) FOR PERIOD	£22,277			£(383,183)			£362,660
Earnings/(Loss) per share	3.71p			(63.86)p			60.44p

STATEMENT OF FINANCIAL POSITION
AT 30 APRIL 2022
	30 April 2022	30 April 2021		31 October 2021
	(Unaudited)		(Unaudited)		(Audited)
	£		£		£
FIXED ASSETS
Tangible Assets	2,504,821		2,578,230		2,500,211
CURRENT ASSETS
Stocks	40,200		24,474		36,657
Debtors	124,131		103,643		115,672
Investments – 3 month notice deposit accounts	451,946		200,325		451,014
Cash at bank and in hand	1,353,406		684,264		1,328,353
	1,969,683		1,012,706		1,931,696
CREDITORS
Amounts falling due within one year	(817,611)		(326,396)		(677,291)
NET CURRENT ASSETS	1,152,072		686,310		1,254,405
TOTAL ASSETS LESS
CURRENT LIABILITIES	3,656,893		3,264,540		3,754,616
CREDITORS: Amounts falling due after more than one year	-		(240,000)		-
PROVISION FOR LIABILITIES	(94,380)		(110,147)		(94,380)
NET ASSETS	£3,562,513		£2,914,393		£3,660,236
CAPITAL AND RESERVES
Called up share capital	600,000		600,000		600,000
Revaluation reserve	402,651		406,930		402,651
Profit and loss reserves	2,559,862		1,907,463		2,657,585
	£3,562,513		£2,914,393		£3,660,236

STATEMENT OF CASH FLOWS
FOR THE HALF YEAR ENDED 30 APRIL 2022
	Half year to	Half year to		Year ended
	30 April 2022		30 April 2021	31 October 2021
	(Unaudited)		(Unaudited)		(Audited)
	£		£		£
NET CASH INFLOW FROM/(USED IN) OPERATING ACTIVITIES (Note 1)	238,289		(321,460)		829,213
NET CASH USED IN INVESTING ACTIVITIES (Note 2)	(93,236)		(19,417)		(286,001)

FINANCING ACTIVITIES
Repayment of bank loans	-		-		(240,000)
Dividends paid	(120,000)		-		-
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS	25,053		(340,877)		303,212
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD	1,328,353		1,025,141		1,025,141
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD	£1,353,406		£684,264		£1,328,353
RELATING TO:
Cash at bank and in hand	£1,353,406		£684,264		£1,328,353

NOTES TO THE STATEMENT OF CASH FLOWS
FOR THE HALF YEAR ENDED 30 APRIL 2022
		Half year to	Half year to					Year ended
		30 April 2022	30 April 2021					31 October 2021
		(Unaudited)			(Unaudited)					(Audited)
		£			£					£
Note 1
CASH FLOWS FROM OPERATING
ACTIVITIES
Profit/(Loss) after tax		22,277			(383,183)					362,660
Adjustments for:
Taxation		-			-					94,366
Depreciation		92,102			93,402					190,102
Loss/(gain) on disposal of fixed assets		289			3,550					3,550
Interest receivable		(4,697)			(2,214)					(5,000)
OPERATING CASH FLOW BEFORE WORKING CAPITAL CHANGES		109,971			(288,445)					645,678
MOVEMENTS IN WORKING CAPITAL
(Increase)/decrease in stocks		(3,543)			3,425					(8,758)
(Increase)/decrease in debtors		(8,459)			25,773					(5,590)
Increase/(decrease) in creditors		140,320			(62,213)					178,549
Income taxes refunded		-			-					19,334
NET CASH GENERATED FROM/(USED IN) OPERATING ACTIVITIES		£238,289			£(321,460)					£829,213
Note 2 INVESTING ACTIVITIES
Purchases of tangible fixed assets	(97,001)					(21,306)			(39,987)
Interest received	4,697					2,214			5,000
Payment for other investments	(932)					(325)			(251,014)
NET CASH FLOW USED IN INVESTING ACTIVITIES	£(93,236)					£(19,417)			£(286,001)

NOTES TO THE ACCOUNTS
1	The results are prepared on the basis of the accounting policies set out in the Company’s Annual Report and Accounts for the year ended 31 October 2021. At the date of this report, there exists considerable uncertainty regarding the potential impact of the Coronavirus and the economic consequences, both within the U.K. and overseas, which may result from government policies to contain the spread. The duration and geographical extent of any possible lockdown or future government policies are unknown. Whilst we are unable to predict what the economic consequences may be and the impact on the company’s future ability to continue trading, we have continued to use the going concern basis as appropriate in the preparation of these accounts.
2	The earnings per share are based on a profit of £22,277 (2021 loss of £383,183) being the profit on ordinary activities after taxation.
3	The movement in retained Profit and Loss Reserves from £2,657,585 at 31 October 2021 to £2,559,862 at 30 April 2022 includes the profit for the period and dividends paid of £120,000 ( £120,000 paid in the period and £Nil accrued).
4	All dividends in 2022 were paid in the period and no accrual is included in creditors, amounts falling due within one year as at 30 April 2022 (2021: £Nil dividends paid and no accrual included in creditors, amounts falling due within one year as at 30 April 2021).
5	A copy of the interim report and accounts and the Chairman’s statement thereto, which were approved by the Board of Directors on 12 July 2022, will be posted to all registered shareholders shortly thereafter.
6	The financial information set out above does not constitute statutory accounts as defined in section 434 of the Companies Act 2006. Statutory accounts for the year ended 31 October 2021, on which the report of the auditor was unqualified and did not contain a statement under section 498 of the Companies Act 2006, have been filed with the Registrar of Companies.
7	The company’s auditor, UHY Hacker Young LLP, has not reviewed these unaudited interim accounts.

Market Abuse Regulation (MAR) Disclosure

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