Hydro Hotel Eastbourne plc

Earnings Release • Jul 14, 2020

National Storage Mechanism | Additional information

HYDRO HOTEL EASTBOURNE PLC - Interim Results

PR Newswire

London, July 13

14 July 2020

Hydro Hotel, Eastbourne, Plc

(“Hydro Hotel” or the “Company”)

Interim Results for the Half Year ended 30 April 2020

YOUR CHAIRMAN'S LETTER

Dear Shareholder,

SIX MONTHS TO 30 APRIL 2020

I report on the company’s results for the six months to 30 April 2020, which reflect the impact of the Coronavirus on our business, with the pandemic declared on 11 March 2020, non-essential travel prohibited in the UK from 16 March 2020, and the closure of leisure and hospitality venues from 23 March 2020.

The total turnover for the six month period to 30 April 2020 was £1,177,033 compared to £1,553,553 for the same period the previous year, a decrease of 24.24% (compared to an increase in the six months to 30 April 2019 of 2.57%).

The gross profit percentage for the period was 0.47% lower than in the six months to 30 April 2019 and staff costs (excluding grants received for the Coronavirus Job Retention Scheme) increased by 4.8% compared to the figure for the period to 30 April 2019 (6.7% increase in the half year to 30 April 2019).

Overheads decreased by 10.93% (15.02% decrease in the half year ended 30 April 2019). Only routine maintenance to the fabric of the building was undertaken during the six months to 30 April 2020. Consequently, there was a reduction in repairs costs of £12,342 for this period compared to the same period in the previous year.

There is an increase in the loss for the half year to 30 April 2020 to £276,850 compared to £101,271 for the half year to 30 April 2019. 

The conservatory was refurbished with new furniture and flooring, the hotel’s computer server was upgraded, and the door locking system was replaced.

The Board and the management of the company in monitoring cash resources have reviewed and taken advantage of appropriate sources of finance available from the Government, and cancelled the dividend previously declared payable on 30 April 2020.

All action required, by Government and the relevant guidance issued, has been taken to enable the hotel to re-open for business on 4 July 2020.

The Board wishes to express its thanks to the management and staff of the hotel for their co-operation and efforts during these exceptional circumstances and the Hydro team look forward to welcoming new and returning guests in this our 125th year of operation.

Yours sincerely,

Graeme C King, MA, CA

13 July 2020

STATEMENT OF COMPREHENSIVE INCOME

FOR THE HALF YEAR ENDED 30 APRIL 2020

	Half year to 30 April 2020 (Unaudited)		Half year to 30 April 2019 (Unaudited)		Year ended 31 October 2019 (Audited)
	GBP		GBP		GBP
TURNOVER	1,177,033		1,553,553		3,733,698
OPERATING (LOSS)/PROFIT	(281,909)		(106,271)		271,809
INTEREST RECEIVABLE	5,059		5,000		10,265
(LOSS)/PROFIT BEFORE TAXATION	(276,850)		(101,271)		282,074
TAXATION	-		-		(57,558)
(LOSS)/PROFIT FOR PERIOD	GBP(276,850)		GBP(101,271)		GBP224,516
(Loss)/Earnings per share	(46.14)p		(16.88)p		37.42p

STATEMENT OF FINANCIAL POSITION

AT 30 APRIL 2020

	30 April 2020 (Unaudited)		30 April 2019 (Unaudited)		31 October 2019 (Audited)
	GBP		GBP		GBP
FIXED ASSETS
Tangible Assets	2,743,514		2,823,218		2,759,650
CURRENT ASSETS
Stocks	30,719		27,502		37,123
Debtors	41,126		103,049		129,098
Investment – 6 month notice deposit account	200,658		200,000		200,000
Cash at bank and in hand	586,585		601,622		1,107,586
	859,088		932,173		1,473,807
CREDITORS
Amounts falling due within one year	(316,697)		(503,138)		(621,780)
NET CURRENT ASSETS	542,391		429,035		852,027
TOTAL ASSETS LESS
CURRENT LIABILITIES	3,285,905		3,252,253		3,611,677
PROVISION FOR LIABILITIES	(125,890)		(87,175)		(120,812)
NET ASSETS	GBP3,160,015		GBP3,165,078		GBP3,490,865
CAPITAL AND RESERVES
Called up share capital	600,000		600,000		600,000
Revaluation reserve	411,209		415,488		411,209
Profit and loss reserves	2,148,806		2,149,590		2,479,656
	GBP3,160,015		GBP3,165,078		GBP3,490,865

STATEMENT OF CASH FLOWS

FOR THE HALF YEAR ENDED 30 APRIL 2020  

	Half year to 30 April 2020 (Unaudited)		Half year to 30 April 2019 (Unaudited)		Year ended 31 October 2019 (Audited)
	GBP		GBP		GBP
NET CASH (USED IN)/INFLOW FROM OPERATING ACTIVITIES  (Note 1)	(387,801)		(67,538)		466,930
NET CASH USED IN INVESTING   ACTIVITIES (Note 2)	(79,200)		(294,347)		(322,851)
FINANCING ACTIVITIES
Dividends paid	(54,000)		(126,000)		(126,000)
NET (DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS	(521,001)		(487,885)		18,079
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD	1,107,586		1,089,507		1,089,507
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD	GBP586,585		GBP601,622		GBP1,107,586
RELATING TO:
Cash at bank and in hand	GBP586,585		GBP601,622		GBP1,107,586

NOTES TO THE STATEMENT OF CASH FLOWS

FOR THE HALF YEAR ENDED 30 APRIL 2020

	Half year to 30 April 2020 (Unaudited)		Half year to 30 April 2019 (Unaudited)		Year ended 31 October 2019 (Audited)
	GBP		GBP		GBP
Note 1
CASH FLOWS FROM OPERATING
ACTIVITIES
(Loss)/profit after tax	(276,850)		(101,271)		224,516
Adjustments for:
Taxation	-		-		57,558
Depreciation	99,098		98,308		201,605
Loss/(gain) on disposal of fixed assets	638		(1,187)		(7,147)
Interest receivable	(5,059)		(5,000)		(10,265)
OPERATING CASH FLOW BEFORE WORKING CAPITAL CHANGES	(182,173)		(9,150)		466,267
MOVEMENTS IN WORKING CAPITAL
Decrease/(increase) in stocks	6,404		2,936		(6,685)
Decrease in debtors	87,972		47,038		20,989
(Decrease)/increase in creditors	(300,004)		(108,362)		24,271
Income taxes paid	-		-		(37,912)
NET CASH (USED IN)/GENERATED FROM OPERATING ACTIVITIES	GBP(387,801)		GBP(67,538)		GBP466,930
Note 2 INVESTING ACTIVITIES
Purchases of tangible fixed assets	(83,607)		(300,744)		(341,207)
Proceeds on disposal of tangible fixed assets	6		1,397		8,091
Interest received	5,059		5,000		10,265
Payment for other investments	(658)		-		-
NET CASH FLOW USED IN INVESTING ACTIVITIES	GBP(79,200)		GBP(294,347)		GBP(322,851)

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 2019. 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 loss of £276,850 (2019 loss £101,271) being the loss on ordinary activities after taxation.
3	The movement in retained Profit and loss Reserves and Revaluation Reserves from £2,890,865 at 31 October 2019 to £2,560,015 at 30 April 2020 includes the loss for the period and dividends of £54,000 (2019: £126,000 paid in the period and £Nil accrued).
4	All dividends in 2020 were paid in the period and no accrual is included in creditors, amounts falling due within one year as at 30 April 2020 (2019: £Nil accrued).
5	A copy of the interim report and accounts and the Chairman’s statement thereto, which were approved by the Board of Directors on 13 July 2020, 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 2019, 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, Mazars LLP, has not reviewed these unaudited interim accounts.

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.