Brighton Pier Group gives cautious outlook as wet weather dampens sales

30th Sep 2024 07:22

(Sharecast News) - Shares in The Brighton Pier Group fell on Monday after the leisure company reported a big drop in operating profits and warned that full-year results may be affected as poor weather over the summer dented footfall.

The company, which owns Brighton Palace Pier, as well as a five bars, eight mini-golf sites and the Lightwater Valley Family Adventure Park in Yorkshire, said wet and windy weather hit revenues at the pier in the first half, forcing the closure of higher-margin rides and a general downturn in domestic tourism in Brighton.

While trading over the busier summer months picked up - helped by the introduction of a £1 admission fee to the pier for non-residents that was introduced this year - a sales and earnings deficit to original expectations has not been recovered.

"As a consequence, the group's outlook remains one of caution in the short-to-medium term. The board believes that if trading continues in line with the last few months, full year sales and earnings will be lower than previously expected for 2024," BPG said.

Revenues over the six months to 23 June totalled £13.9m, down £1m from last year on a like-for-like basis, with a weaker performance at the pier accounting for most of the decline. Group EBITDA fell to £0.4m from £1.4m the year before.

Chief executive Anne Ackord said overall demand across the estate "has remained subdued as consumers continue to closely manage discretionary spend", and that the company is focused on "disciplined cost management".

Shares were down nearly 5% at 33.78p by 0852 BST.