Final Results for the year ended 31 October 2023

21 February 2024

HYDRO HOTEL, EASTBOURNE, PLC

(“Hydro Hotel” or the “Company”)

FINAL RESULTS FOR THE YEAR ENDED 31 OCTOBER 2023

HIGHLIGHTS

The profit for the financial year after taxation was GBP235,945 (2022 profit of GBP336,700). Turnover from the Hydro Hotel operation increased during the year by 0.7% (2022 increased by 57.7%). Earnings per share were 39.32p compared to 56.12p for the previous year.

The Company’s operating activities generated cash of GBP485,680 (2022 generated cash of GBP597,959) and it invested GBP273,488 in new fixed assets (2022 GBP149,666). During the year the Company paid  ordinary dividends of GBP210,000 (2022 GBP204,000). At the year end the Company had net current assets of GBP1,442,129 (2022 GBP1,459,345).

CHAIRMAN’S STATEMENT

Results for year ended 31 October 2023

I am pleased to present my first statement as Chairman and offer thanks to my predecessor, Graeme King, who chaired the Company's proceedings for the past 18 years. I am delighted that Graeme has agreed to continue as a director, so that we may continue to benefit from his knowledge and skills.

Sales for the year totalled £4,432,917, an increase of 0.7% on the £4,402,288 sales for the previous year (2022 57.7% increase). Operating profit for the year was £259,602 (2022 £429,300).  After interest receivable and the corporation tax charge, the post-tax profits for the year were £235,945 (2022 £336,700). An interim dividend of 12p per share (2022 14p per share) absorbing £72,000 (2022 £84,000) was paid to shareholders in October 2023. Taking into account the level of post-tax profits for the year and with the company having strong reserves and assets, the board has decided to declare a further interim dividend of 12p per share (2022 23p per share), absorbing £72,000 (2022 £138,000), which will be paid on Wednesday 3 April 2024 to shareholders on the register on Friday 22 March 2024. The ex-dividend date will be Thursday 21 March 2024.

The trading environment for the hotel and tourism industry continues to be challenging with the continuing cost of living crisis and high inflation impacting on operating costs and consumer demand. Despite careful monitoring of food and drink costs the gross profit percentage was slightly down on 2022, which also benefitted significantly from the reduction in the VAT rate from 20% to 12.5% during the 5 months to 31 March 2022 as part of the government's support to the hospitality industry during the coronavirus pandemic. Repair costs significantly increased in the year reflecting general maintenance to the fabric of the building, including replacement of windows and fire doors as well as major repair works to the restaurant roof.

Capital improvements at the hotel during the year included the installation of solar panels on the roof, a major project for the hotel, and the ongoing refurbishment of the Crystal Restaurant, as well as general refurbishment of a number of bedrooms, upgrading of the wifi system and improved CCTV coverage.

Developments since 31 October 2023

New marketing techniques will continue to be developed during the year to further encourage direct bookings at the hotel, which show an increase, year on year.

Updating of the Conservatory air conditioning will be undertaken in the coming year together with replacement of the outside furniture for the Garden Suite and Main Terrace. General refurbishment of bedrooms and public areas will continue.

Our Staff

I would like to congratulate our General Manager, Jonathan Owen, on the results achieved for the hotel this year, despite 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. All staff continued to deliver the Hydro's renowned quality of service which our customers value so much.

	Christopher J Bean LL.B (Hons)
20 February 2024	Chairman of the Board

STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 OCTOBER 2023
			2023	2022
			GBP	GBP
Turnover
Continuing operations			4,432,917	4,402,288
Cost of sales			(3,916,653)	(3,694,357)
Gross profit			516,264	707,931
Administrative expenses			(256,662)	(285,729)
Other operating income			-	7,098
Operating profit			259,602	429,300
Interest receivable and similar income			50,805	15,911
Profit before taxation			310,407	445,211
Taxation			(74,462)	(108,511)
Profit for the financial year			GBP 235,945	GBP 336,700
Earnings per share - continuing operations			39.32p	56.12p

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 2023
			2023	2022
			GBP	GBP
Fixed assets
Tangible Assets			2,525,316	2,456,700
Current assets
Stocks			40,028	36,645
Debtors			189,158	214,131
Investments			465,980	453,924
Cash at bank and in hand			1,626,588	1,585,647
			2,321,754	2,290,347
Creditors: Amounts falling due within one year			(879,625)	(831,002)
Net current assets			1,442,129	1,459,345

Total assets less current liabilities			3,967,445	3,916,045
Provisions for liabilities			(148,564)	(123,109)
Net assets			GBP 3,818,881	GBP 3,792,936
Capital and reserves
Ordinary Shares - Authorised and Issued:
600,000 Shares of GPB1.00 each fully paid			600,000	600,000
Revaluation reserve			394,093	398,372
Profit and loss reserves			2,824,788	2,794,564
Total equity			GBP 3,818,881	GBP 3,792,936

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 2023. These accounts have not to date been delivered to the Registrar of Companies. The Company’s auditor, UHY Hacker Young 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 12.0 pence per share (2022 23.0 pence paid) is to be paid on 3 April 2024 to shareholders on the register on 22 March 2024. 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: [phone]

Peterhouse Capital Limited  Mark Anwyl  Telephone: [phone]

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.

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