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DJ Hydro Hotel, Eastbourne, Plc Half Yearly Report

 
TIDMHYDP 
 
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 GBP1,325,291 (reduction in the six 
months to 30 April 2015 of 2.78% to GBP1,309,051). 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 GBP98,640 compared to the loss in the six months to 30 April 2015 of GBP 
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 jonathan.owen@hydrohotel.com. 
 
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) 
 
                                                GBP                GBP                 GBP 
 
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           (98,640)        (166,694)            133,576 
BEFORE TAXATION 
 
TAXATION ON (LOSS)/PROFIT 
 
ON ORDINARY ACTIVITIES                                -                -           (29,959) 
 
(LOSS)/PROFIT FOR PERIOD                      GBP(98,640)       GBP(166,694)           GBP103,617 
 
(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) 
 
                                                 GBP                GBP                GBP 
 
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                 GBP3,089,545       GBP3,025,874       GBP3,296,185 
 
CAPITAL AND RESERVES 
 
Ordinary Shares - 600,000 shares 
 
of GBP1 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 
 
                                              GBP3,089,545       GBP3,025,874       GBP3,296,185 
 
 
 
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) 
 
                                                 GBP                 GBP               GBP 
 
NET CASH GENERATED FROM/(USED IN)                (70,361)         (88,395)        249,528 
OPERATING ACTIVITIES                (Note 
1) 
 
NET CASH FLOW FROM INVESTING ACTIVITIES           465,900        (558,083)      (556,048) 
 
(Note 2) 
 
 
 
FINANCING ACTIVITIES 
 
Equity dividends paid                            (36,000)         (36,000)      (108,000) 
 
NET INCREASE/(DECREASE) IN CASH AND CASH          359,539        (682,478)      (414,520) 
EQUIVALENTS 
 
CASH AND CASH EQUIVALENTS AT THE BEGINNING        650,831        1,065,351      1,065,351 
OF THE PERIOD 
 
CASH AND CASH EQUIVALENTS AT THE END OF        GBP1,010,370         GBP382,873       GBP650,831 
THE PERIOD 
 
CASH AND CASH EQUIVALENTS CONSIST OF: 
 
Cash at bank and in hand                       GBP1,010,370         GBP382,873       GBP650,831 
 
 
 
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) 
 
                                                  GBP                GBP                GBP 
 
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        (12,596)        (77,444)          312,638 
CHANGES 
 
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)                GBP(70,361)       GBP(88,395)         GBP249,528 
OPERATING ACTIVITIES 
 
 
 
 
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            GBP465,900     GBP(558,083)     GBP(556,048) 
 
 
 
HYDRO HOTEL, EASTBOURNE, PLC 
 
RECONCILIATION OF PRIOR YEAR BALANCES 
 
ON TRANSITION TO FRS 102 ACCOUNTING STANDARD 
 

(MORE TO FOLLOW) Dow Jones Newswires

July 13, 2016 05:30 ET (09:30 GMT)

DJ Hydro Hotel, Eastbourne, Plc Half Yearly Report -2-

                                                    2015         Effect of           2015 
 
                                               As reported      Transition        FRS 102 
 
                                                         GBP               GBP              GBP 
 
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 
 
                                                  GBP985,005              GBP-       GBP985,005 
 
 
 
 
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 
 
                                                GBP1,308,983             GBP-     GBP1,308,983 
 
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 GBP98,640 (2015 loss GBP166,694) 
   being the loss on ordinary activities after taxation. 
 
3  The movement in retained Profit and Loss account reserves from GBP2,267,860 at 
   31 October 2015 to GBP2,061,220 at 30 April 2016 includes the loss for the 
   period and dividends of GBP108,000 (GBP36,000 paid in the period and GBP72,000 
   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 GBP72,000 (2015 12p per share GBP72,000). 
 
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. 
 
 
 
END 
 

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July 13, 2016 05:30 ET (09:30 GMT)