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Hydro Hotel, Eastbourne, Plc (HYDP)

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Wednesday 13 July, 2016

Hydro Hotel, Eastbourne, Plc

Half Yearly Report

HYDRO HOTEL, EASTBOURNE, PLC
Interim Report and Accounts
Half Year ended 30 April 2016
 
HYDRO HOTEL, EASTBOURNE, PLC
YOUR CHAIRMAN'S LETTER
Dear Shareholder,
SIX MONTHS TO 30 APRIL 2016
We had a better Christmas and New Year season than the previous year, which got the sales off to a good start for the half year, but the improvement did not continue through to the spring, so that the sales increase for the six months to 30 April 2016 was restricted to 1.2% to £1,325,291 (reduction in the six months to 30 April 2015 of 2.78% to £1,309,051). This was partly attributable to the management adjustments necessitated by the departure of the former general manager during the period, and partly to the consumer caution brought on by the impending referendum on the United Kingdom’s membership of the European Community.  With so many potential economic changes engendered by the result of the referendum, it is too early to assess what impact this will have on the company’s business in the longer term.
The overall result for the six months to 30 April 2016 was a reduction in the loss to £98,640 compared to the loss in the six months to 30 April 2015 of £166,694. This relative improvement was helped by a 1.56% increase in the gross profit percentage for the half year (0.04% improvement in the half year to 30 April 2015). Staff costs reduced by 2.26% (half year to 30 April 2015 7.10% increase) which was a good outcome given the National Living Wage was introduced during the period. Overheads reduced by 3.89% (half year to 30 April 2015 1.06% increase), helped by the deferral of refurbishment projects pending the appointment of a new general manager.  I wish to thank our management team for achieving this result while coping with the changes in responsibilities occasioned by the loss of the general manager part way through the period.
I am pleased to say that Jonathan Owen joined us as general manager during May 2016 from his previous employment at Hand Picked Hotels, and has identified and started to implement some necessary operational changes. The board will be reviewing his strategic plans for the hotel later in the year once he has completed his detailed assessment of the business and formulated proposals for consideration by the board. In the meantime Mr Owen will be pleased to meet shareholders who visit the hotel, and is offering shareholders the opportunity for the remainder of the financial year to 31 October 2016 to book their private functions without any charge for room hire. Your booking will also benefit from the shareholders’ discount scheme. If you wish to discuss this offer please visit the hotel, call the hotel on 01323 720643, or send an email to [email protected]
Our 2016 full year accounts will be the first prepared under the new UK accounting standard FRS 102. The transitional period for adoption of FRS 102 commenced on 1 November 2014 and comparative numbers, for the year ended 31 October 2015 and 30 April 2015, have been restated to comply with the new standard and are explained in note 5 to these accounts.
Yours sincerely,
Graeme C King, MA, CA
12 July 2016

   

HYDRO HOTEL, EASTBOURNE, PLC
SUMMARY PROFIT AND LOSS ACCOUNT
FOR THE HALF YEAR ENDED 30 APRIL 2016
Half year to Half year to Year ended
30 April 2016 30 April 2015 31 October 2015
FRS 102 FRS 102
(Unaudited) (Unaudited) (Unaudited)
£ £ £
TURNOVER 1,325,291 1,309,051 3,129,504
OPERATING (LOSS)/PROFIT (104,818) (173,321) 120,006
INTEREST RECEIVABLE 6,178  6,627 13,570
(LOSS)/PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION (98,640) (166,694) 133,576
TAXATION ON (LOSS)/PROFIT
ON ORDINARY ACTIVITIES - - (29,959)
(LOSS)/PROFIT FOR PERIOD £(98,640) £(166,694) £103,617
(Loss)/Earnings per share (16.44)p (27.78)p     17.27p

   

HYDRO HOTEL, EASTBOURNE, PLC
SUMMARY BALANCE SHEET
AT 30 APRIL 2016
30 April 2016 30 April 2015 31 October 2015
FRS 102 FRS 102
(Unaudited) (Unaudited) (Unaudited)
£ £ £
FIXED ASSETS
Tangible Assets 2,508,779 2,648,157 2,557,464
CURRENT ASSETS
Stocks 37,034 30,910 29,189
Debtors 90,482 71,222 128,963
Investments - 500,000 500,000
Cash at bank and in hand 1,010,370 382,873 650,831
1,137,886 985,005 1,308,983
CREDITORS
Amounts falling due within one year (477,808) (527,664) (490,950)
NET CURRENT ASSETS 660,078 457,341 818,033
TOTAL ASSETS LESS
CURRENT LIABILITIES 3,168,857 3,105,498 3,375,497
PROVISION FOR LIABILITIES (79,312) (79,624) (79,312)
TOTAL ASSETS LESS LIABILITIES £3,089,545 £3,025,874 £3,296,185
CAPITAL AND RESERVES
Ordinary Shares – 600,000 shares
of £1 each called up & fully paid 600,000 600,000 600,000
Non Distributable Reserve 428,325 432,604 428,325
Profit and Loss Account 2,061,220 1,993,270 2,267,860
£3,089,545 £3,025,874 £3,296,185

   

HYDRO HOTEL, EASTBOURNE, PLC
CASH FLOW STATEMENT
FOR THE HALF YEAR ENDED 30 APRIL 2016
Half year to    Half year to Year ended
30 April 2016 30 April 2015 31 October 2015
FRS 102 FRS 102
(Unaudited) (Unaudited) (Unaudited)
£ £ £
NET CASH GENERATED FROM/(USED IN) OPERATING ACTIVITIES                (Note 1) (70,361) (88,395) 249,528
NET CASH FLOW FROM INVESTING ACTIVITIES                                        (Note 2)   465,900 (558,083) (556,048)

   

FINANCING ACTIVITIES
Equity dividends paid (36,000) (36,000) (108,000)
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS 359,539 (682,478) (414,520)
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD 650,831 1,065,351 1,065,351
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD £1,010,370 £382,873 £650,831
CASH AND CASH EQUIVALENTS CONSIST OF:
Cash at bank and in hand £1,010,370 £382,873 £650,831

   

HYDRO HOTEL, EASTBOURNE, PLC
NOTES TO THE CASH FLOW STATEMENT
FOR THE HALF YEAR ENDED 30 APRIL 2016
Half year to Half year to Year ended
30 April 2016 30 April 2015 31 October 2015
FRS 102 FRS 102
(Unaudited) (Unaudited) (Unaudited)
£ £ £
Note 1
CASH FLOWS FROM OPERATING
ACTIVITIES
Profit/(loss) before tax (98,640) (166,694) 133,576
Adjustments for:
Depreciation 88,666 95,877 192,452
(Profit)/loss on disposal of fixed assets 3,556 - 180
Interest receivable (6,178) (6,627) (13,570)
OPERATING CASH FLOW BEFORE WORKING CAPITAL CHANGES (12,596) (77,444) 312,638
MOVEMENTS IN WORKING  CAPITAL
(Increase)/decrease in stocks (7,845) 3,413 5,134
Decrease/(increase) in debtors 38,481 30,772 (26,969)
(Decrease) in creditors (88,401) (45,136) (1,694)
Taxation paid - - (39,581)
NET CASH GENERATED FROM/(USED IN) OPERATING ACTIVITIES £(70,361) £(88,395) £249,528

   

Note 2

INVESTING ACTIVITIES
Purchases of property, plant and equipment (40,278) (114,710) (119,618)
Interest received 6,178 6,627 13,570
Receipts from investments/deposits 500,000 (450,000) (450,000)
NET CASH FLOW FROM INVESTING ACTIVITES £465,900 £(558,083) £(556,048)

   

HYDRO HOTEL, EASTBOURNE, PLC
RECONCILIATION OF PRIOR YEAR BALANCES
ON TRANSITION TO FRS 102 ACCOUNTING STANDARD
2015   Effect of 2015
As reported Transition FRS 102
£ £ £
PERIOD TO 30 APRIL 2015

CURRENT ASSETS
Stocks 30,910 - 30,910
Debtors 71,222 - 71,222
Investments - 500,000 500,000
Cash at bank and in hand 882,873 (500,000) 382,873
£985,005 £- £985,005

   

PERIOD TO 31 OCTOBER 2015

CURRENT ASSETS
Stocks 29,189 - 29,189
Debtors 128,963 - 128,963
Investments - 500,000 500,000
Cash at bank and in hand 1,150,831 (500,000) 650,831
£1,308,983 £- £1,308,983
The changes shown relate to the requirement in FRS 102 to treat amounts held on deposit for more than three months as Investments, where these were previously included in Cash at bank and in hand.

   

HYDRO HOTEL, EASTBOURNE, PLC
NOTES TO THE ACCOUNTS
1 The results are prepared under the new accounting standard FRS 102. The 31 October 2015 full year accounts were audited but, as the adjustments made to comply with FRS 102 have not been audited, the above statements show these results as being unaudited.
2 The earnings per share are based on a loss of £98,640 (2015 loss £166,694) being the loss on ordinary activities after taxation.
3 The movement in retained Profit and Loss account reserves from £2,267,860 at 31 October 2015 to £2,061,220 at 30 April 2016 includes the loss for the period and dividends of £108,000 (£36,000 paid in the period and £72,000 accrued).
4 Creditors, amounts falling due within one year, include a dividend for the year ended 31 October 2015 declared by the directors and paid on 5 May 2016 at the rate of 12p per share of £72,000 (2015 12p per share £72,000).
5 The Reconciliation of Prior Year Balances shows the impact of the transition to the new accounting standard, FRS 102, on figures disclosed in these Interim Accounts.
6 A copy of the interim report and accounts and the Chairman’s statement thereto, which were approved by the Board of Directors on 12 July 2016, will be posted to all registered shareholders shortly thereafter.
7 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 2015, 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.
8 The company’s auditor, Mazars LLP, has not reviewed these unaudited interim accounts.

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