Brighton Pier Group warns on profits, shares slide

26th Jul 2024 08:34

(Sharecast News) - The Brighton Pier Group warned on Friday that full-year EBITDA was set to be lower than previously expected due to poor weather.

In an update for the first half of its financial year, the company said that as previously announced, the first 18 weeks of the year saw like-for-like sales around £0.5m below the equivalent period in 2023, mainly as poor weather hit trading on Brighton Palace Pier.

In the months since the last update, poor weather has continued to dent sales at the Pier, through a combination of ride closures and lower footfall, it said. Footfall for the four-week period ending 21 July was down 29% on the same period a year ago.

The company said despite a warm and sunny spell in the last week, and the successful implementation of charging non-residents £1 for admission to the Pier during peak trading periods, full-year sales for the Pier will be lower than previously expected.

Although the remaining six weeks of the summer season through to the end of August have typically contributed a significant portion of annual group sales and earnings, Brighton Pier said it no longer expects to recover the year to date sales and earnings shortfall. As a result, full-year earnings before interest, tax, depreciation and amortisation will be below market expectations.

Chief executive Anne Ackord said: "Despite significant efforts by our divisional management teams, who continue as always to strive for the best results possible, the overall group trading performance year to date has been disappointing.

"The potential return of summer weather in the next six weeks, combined with the additional revenue from admission charging may offset some of the year to date trading deficit. Nevertheless, it is the board's view that the trading for the full 2024 summer season will be below expectations."

At 0830 BST, the shares were down 16.5% at 33p.