Interim Results for the Half Year ended 30 April 2023

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12 July 2023

 

Hydro Hotel, Eastbourne, Plc

(“Hydro Hotel” or the “Company”)

 

Interim Results for the Half Year ended 30 April 2023

 

YOUR CHAIRMAN'S LETTER

 

Dear Shareholder,

 

SIX MONTHS TO 30 APRIL 2023

 

I am pleased to report on the company’s results for the six months to 30 April 2023. The total turnover for the six month period to 30 April 2023 was £1,799,816 compared to £1,822,411 for the same period the previous year, a decrease of 1% (compared to an increase in the six months to 30 April 2022 of 882%).

 

The gross profit percentage for the period was 3% lower than in the six months to 30 April 2022 and staff costs (excluding grants received for the Coronavirus Job Retention Scheme) increased by 3% compared to the figure for the period to 30 April 2022 (73% increase in the half year to 30 April 2022).

 

Overheads increased by 17% (77% increase in the half year ended 30 April 2022). Essential repair work to the fabric of the building was undertaken during the six months to 30 April 2023, with only routine maintenance carried out during the period to 30 April 2022. Consequently, there was an increase in repair costs of £83,847 for this period compared to the same period in the previous year, contributing to the increase in overhead expenses. This in turn has led to a loss for the half year to 30 April 2023 of £171,469 compared to a  profit of £22,277 for the half year to 30 April 2022.

 

The updating of the décor and furniture of the Crystal Restaurant continued during the period, together with the refurbishment of some bedrooms and public areas. New solar panels were installed on the hotel roof, to save energy costs and in keeping with the company’s green policy.

 

The Board and the management of the company continue to monitor cash resources and have paid the dividend of £138,000 declared on 19 January 2023. 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 during the period. The Hydro team look forward to welcoming new and returning guests in this our 128th year of operation.

 

Yours sincerely,

 

Graeme C King, MA, CA 

 

11 July 2023

 

STATEMENT OF COMPREHENSIVE INCOME FOR THE HALF YEAR ENDED 30 APRIL 2023

 

 

Half year to

Half year to

Year ended

 

30 April 2023

30 April 2022

31 October 2022

 

(Unaudited)

 

(Unaudited)

 

(Audited)

 

£

 

£

 

£

TURNOVER

1,799,816

 

1,822,411

 

4,402,288

 

 

 

 

 

 

OPERATING (LOSS)/PROFIT

(192,313)

 

17,580

 

429,300

 

 

INTEREST RECEIVABLE

20,844

 

4,697

 

15,911

 

 

 

 

 

 

 

 

 

 

 

 

(LOSS)/PROFIT BEFORE TAXATION

(171,469)

 

22,277

 

445,211

 

 

 

 

 

 

TAXATION

-

 

-

 

(108,511)

 

 

 

 

 

 

(LOSS)/PROFIT FOR PERIOD

£(171,469)

 

£22,277

 

£336,700

 

 

 

 

 

 

 

 

 

 

 

 

(Loss)/Earnings per share

(28.58)p

 

3.71p

 

56.12p

 

 

STATEMENT OF FINANCIAL POSITION AT 30 APRIL 2023

 

 

 

30 April 2023

30 April 2022

31 October 2022

 

(Unaudited)

 

(Unaudited)

 

(Audited)

 

£

 

£

 

£

FIXED ASSETS

 

 

 

 

 

Tangible Assets

2,565,055

 

2,504,821

 

2,456,700

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

Stocks

40,321

 

40,200

 

36,645

Debtors

156,803

 

124,131

 

214,131

Investments – 3 month notice deposit accounts

459,798

 

451,946

 

453,924

Cash at bank and in hand

1,146,320

 

1,353,406

 

1,585,647

 

 

 

 

 

 

 

1,803,242

 

1,969,683

 

2,290,347

CREDITORS

 

 

 

 

 

Amounts falling due within one year

(761,721)

 

(817,611)

 

(831,002)

NET CURRENT ASSETS

1,041,521

 

1,152,072

 

1,459,345

 

 

 

 

 

 

TOTAL ASSETS LESS

 

 

 

 

 

CURRENT LIABILITIES

3,606,576

 

3,656,893

 

3,916,045

 

 

PROVISION FOR LIABILITIES

(123,109)

 

(94,380)

 

(123,109)

 

 

 

 

 

 

 

 

 

 

 

 

NET ASSETS

£3,483,467

 

£3,562,513

 

£3,792,936

 

 

 

 

 

 

CAPITAL AND RESERVES

 

 

 

 

 

Called up share capital

600,000

 

600,000

 

600,000

 

 

 

 

 

 

Revaluation reserve

398,372

 

402,651

 

398,372

 

 

 

 

 

 

Profit and loss reserves

2,485,095

 

2,559,862

 

2,794,564

 

 

 

 

 

 

 

£3,483,467

 

£3,562,513

 

£3,792,936

 



STATEMENT OF CASH FLOWS FOR THE HALF YEAR ENDED 30 APRIL 2023

 

 

Half year to

    Half year to

Year ended

 

30 April 2023

 

30 April 2022

31 October 2022

 

(Unaudited)

 

(Unaudited)

 

(Audited)

 

£

 

£

 

£

NET CASH (USED IN)/INFLOW FROM

OPERATING ACTIVITIES  (Note 1)

(133,517)

 

238,289

 

597,959

 

 

 

 

 

 

NET CASH (USED IN) INVESTING

ACTIVITIES (Note 2)

(167,810)

 

(93,236)

 

(136,665)

 

FINANCING ACTIVITIES

 

 

 

 

 

Dividends paid

(138,000)

 

(120,000)

 

(204,000)

 

 

 

 

 

 

NET (DECREASE)/INCREASE IN CASH AND

CASH EQUIVALENTS

(439,327)

 

25,053

 

257,294

 

 

 

 

 

 

CASH AND CASH EQUIVALENTS AT THE

BEGINNING OF THE PERIOD

1,585,647

 

1,328,353

 

1,328,353

 

 

 

 

 

 

CASH AND CASH EQUIVALENTS AT THE

END OF THE PERIOD

£1,146,320

 

£1,353,406

 

£1,585,647

 

 

 

 

 

 

RELATING TO:

 

 

 

 

 

Cash at bank and in hand

£1,146,320

 

£1,353,406

 

£1,585,647




NOTES TO THE STATEMENT OF CASH FLOWS  FOR THE HALF YEAR ENDED 30 APRIL 2023

 

 

 

Half year to

        Half year to

     Year ended

 

30 April 2023

        30 April 2022

31 October 2022

 

(Unaudited)

 

(Unaudited)

 

(Audited)

 

£

 

£

 

£

Note 1

 

 

 

 

 

CASH FLOWS FROM OPERATING

 

 

 

 

 

ACTIVITIES

 

 

 

 

 

(Loss)/profit after tax

(171,469)

 

22,277

 

336,700

Adjustments for:

 

 

 

 

 

Taxation

-

 

-

 

108,511

Depreciation

95,450

 

92,102

 

192,714

Loss/(gain) on disposal of fixed assets

3,625

 

289

 

463

Interest receivable

(20,844)

 

(4,697)

 

(15,911)

OPERATING CASH FLOW BEFORE

WORKING CAPITAL CHANGES

(93,238)

 

109,971

 

622,477

MOVEMENTS IN WORKING CAPITAL

 

 

 

 

 

(Increase)/decrease in stocks

(3,676)

 

(3,543)

 

12

Decrease/(increase) in debtors

57,328

 

(8,459)

 

(98,459)

(Decrease)/increase in creditors

(93,931)

 

140,320

 

183,783

Income taxes paid

-

 

-

 

(109,854)

NET CASH (USED IN)/GENERATED FROM

OPERATING ACTIVITIES

£(133,517)

 

£238,289

 

£597,959

 

Note 2

 

INVESTING ACTIVITIES

 

 

 

 

 

Purchase of tangible fixed assets

(182,780)

 

(97,001)

 

(149,666)

Interest received

20,844

 

4,697

 

15,911

Payment for other investments

(5,874)

 

(932)

 

(2,910)

NET CASH FLOW (USED IN) INVESTING

ACTIVITIES

£(167,810)

 

£(93,236)

 

£(136,665)

 

 

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 2022.

 

 

2

The earnings per share are based on a loss of £171,469 (2022 profit of £22,277) being the loss on ordinary activities after taxation.

 

 

3

The movement in retained Profit and Loss Reserves from £2,794,564 at 31 October 2022 to £2,485,095 at 30 April 2023 includes the loss for the period and dividends paid of £138,000 (2022: £120,000 paid in the period and £Nil accrued).

 

 

4

All dividends in 2023 were paid in the period and no accrual is included in creditors, amounts falling due within one year as at 30 April 2023 (2022: £120,000 dividends paid and no accrual included in creditors, amounts falling due within one year as at 30 April 2022).

 

5

A copy of the interim report and accounts and the Chairman’s statement thereto, which were approved by the Board of Directors on 11 July 2023, 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 2022, 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.

 

Enquiries:

 

Hydro Hotel, Eastbourne, Plc

Sally Gausden 

Company Secretary

 

Telephone: +44 1323 431 200

 

Peterhouse Capital Limited

AQSE Corporate Adviser

Mark Anwyl

Telephone: +44 20 7469 0930

 

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).

 

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