HYDRO HOTEL, EASTBOURNE, PLC
PRELIMINARY ANNOUNCEMENT OF THE FINAL RESULTS FOR THE YEAR ENDED 31 OCTOBER 2014
HIGHLIGHTS
The profit for the financial year after taxation was GBP94,959 (2013
GBP76,984). Turnover from the Hydro Hotel operation increased during the year
by 0.3% (2013 increase of 1.7%). Earnings per share were 15.83p compared to
12.83p for the previous year.
The Company generated cash from ongoing operations of GBP343,850 (2013
GBP297,134) and invested GBP66,076 in new fixed assets (2013 GBP156,060).
During the year the Company paid ordinary dividends of GBP108,000 (2013
GBP108,000). At the year end the Company had net current assets of GBP750,868
(2013 GBP648,563).
CHAIRMAN'S STATEMENT
Results for year ended 31 October 2014
The turnover for the year ended 31 October 2014 at £3,069,548 was slightly up
on the previous year £3,061,278, but with a better yield from sales and well
controlled costs, the operating profit came out at £117,330 compared to £
90,636. After interest received and corporation tax, the post-tax profits for
the year were £94,959 compared to £76,984. While this is not quite sufficient
to cover a maintained dividend again this year, the company has strong reserves
and assets and so we have declared dividends totalling 18 pence per share
absorbing £108,000, the same as the previous year.
The level of business achieved during the year ended 31 October 2014 was
disappointing after some signs of increased activity during the first 6 months.
Trading continues to be tough, although the company is having some success in
continuing to improve its margins commensurate with its position in the market.
The completion in November 2014 of the South Downs Suite, and another superior
double room with enhanced views of the sea and world famous Beachy Head, will
provide management with additional product to attract the higher spending
private and corporate customers we seek.
Developments since 31 October 2014
2015 will see the 120th anniversary of the company since the Hydro first opened
its doors to the general public in 1895 and with this we are planning a special
celebratory weekend event on 26 to 28 of June 2015 to include a gala dinner,
talks and a tour of the hotel's and Eastbourne's history. I would encourage
shareholders to contact Ian Turnbull, our General Manager, to reserve places.
As the hotel has magnificent sea views it is of course in an exposed position,
and a good part of the building is 120 years old. The Victorians built well but
the hotel does require ongoing maintenance to keep it in good operating
condition. We have therefore commissioned Gould & Company, specialist Chartered
Surveyors, to prepare CAD drawings of the hotel's elevation and floor plans,
and its outbuildings, together with a topographical survey of the site, and to
produce a 5 year rolling maintenance programme, to provide the basis for future
maintenance and enhancement plans.
Our Staff
During the year we have taken steps to refresh the board. I mentioned in my
statement in the half year accounts that Christopher Bean, a solicitor, had
been appointed to the board, and later in the summer we appointed James Tuhey,
a specialist in commercial property insurance and management. In accordance
with the company's articles, both will be offering themselves for
re-appointment at the AGM.
Ian Turnbull, our Executive Director and General Manager of the hotel, has
again led his team effectively during the year. Martin Hollands, our Financial
Controller, has continued to keep our costs under constant review. I wish to
record our thanks to our management team and all our staff for their dedication
to attracting customers and to providing Hydro's renowned quality of service.
Graeme C King, MA, CA
27 January 2015 Chairman of the Board
PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 OCTOBER 2014
2014 2013
GBP GBP
TURNOVER
Continuing operations 3,069,548 3,061,278
Cost of sales (2,763,894) (2,775,258)
GROSS PROFIT 305,654 286,020
Administrative expenses (188,324) (195,384)
OPERATING PROFIT 117,330 90,636
BANK INTEREST RECEIVABLE 6,323 9,638
PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION 123,653 100,274
TAXATION ON PROFIT ON ORDINARY ACTIVITIES (28,694) (23,290)
PROFIT FOR THE YEAR GBP 94,959 GBP 76,984
Earnings per share - continuing operations 15.83p 12.83p
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.
BALANCE SHEET AT 31 OCTOBER 2014
2014 2013
GBP GBP
FIXED ASSETS
Tangible Assets
Freehold land and buildings 1,855,135 1,855,410
Furniture and equipment 774,189 900,146
2,629,324 2,755,556
CURRENT ASSETS
Stocks 34,323 37,309
Debtors 101,994 104,686
Cash at bank and in hand 1,115,351 976,102
1,251,668 1,118,097
CREDITORS
Amounts falling due within one year (500,800) (469,534)
NET CURRENT ASSETS 750,868 648,563
TOTAL ASSETS LESS CURRENT LIABILITIES 3,380,192 3,404,119
PROVISION FOR LIABILITIES AND CHARGES (79,624) (90,510)
TOTAL ASSETS LESS LIABILITIES GBP 3,300,568 GBP 3,313,609
CAPITAL AND RESERVES
Ordinary Shares - Authorised and Issued:
600,000 Shares of GPB1.00 each fully paid 600,000 600,000
Revaluation Reserve 432,604 436,883
Profit and Loss Account 2,267,964 2,276,726
EQUITY SHAREHOLDERS' FUNDS GBP 3,300,568 GBP 3,313,609
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 2014. 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
An interim dividend of 6.0 pence per share (2014 6.0 pence) was paid on 15
January 2015 to shareholders on the register on 19 December 2014.
The Board have declared a second interim dividend for the year ended 31 October
2014 of 12.0 pence per share (year ended 31 October 2013 12.0 pence) for
payment on 7 May 2015 to shareholders on the register on 24 April 2015. The
directors do not propose the payment of a final dividend.
ISDX Growth Market Rules for Issuers, Guidance Note 69.1 concerning the
permissible limit for third party directorships held - the directors of the
company complied with the terms of Guidance Note 69.1 throughout the year.
The Directors of Hydro Hotel, Eastbourne, plc accept responsibility for this
announcement, which has been approved for the purposes of the Financial
Services and Markets Act 2000 by Mazars Corporate Finance Limited, Tower Bridge
House, St Katharine's Way, London, E1W 1DD, who are authorized by the Financial
Conduct Authority for investment business.
For further information please contact:
Hydro Hotel, Eastbourne, plc Crispin Freeman Telephone: (+44)(0) 1323 411019
Mazars Corporate Finance Limited Stephen Skeels Telephone: (+44)(0) 2070 634000
