Interim Results for the Half Year ended 30 April 2023

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: [phone]
Peterhouse Capital Limited AQSE Corporate Adviser Mark Anwyl	Telephone: [phone]

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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