Brighton Pier Group swings to loss
By Michele Maatouk
Date: Wednesday 08 May 2024
(Sharecast News) - Brighton Pier Group said on Wednesday that it swung to a full-year loss as revenue fell amid challenging trading conditions.
In the year to 24 December 2023, the company swung to a pre-tax loss of £0.6m from a profit of £7.2m a year earlier, with revenues down to £34.8m from £58.9m.
The company - which owns and trades Brighton Palace Pier, as well as five premium bars, eight indoor mini-golf sites and Lightwater Valley Family Adventure Park - said trading conditions were challenging overall, with cost-of-living pressures softening consumer demand, namely in the bars division. It also highlighted poor weather, train strikes and a fire at the Royal Albion Hotel which dented footfall to the Pier during key trading periods.
The group said trading in 2024 was set to be in line with market expectations and it has taken "a number of positive steps" across its four divisions to enhance its proposition going forward.
As far as the bars segment is concerned, Brighton Pier said the disposal of three loss-making sites at the start of the year, together with savings in overhead, will improve profitability going forward.
On the pier, meanwhile, it plans to charge for admission during peak trading periods in the summer. It said this fee, which will not apply to local residents, will allow it to continue to invest in the structure of the pier and to contribute to the "ever-increasing" operating costs.
Chief executive Anne Ackord said: "In spite of a number of operational challenges experienced during 2023, the group delivered a resilient underlying trading performance.
"While the outlook must continue to be one of caution until economic conditions improve, the plan to trial charging for admissions to the Pier during peak trading periods, the rationalisation of the loss-making sites in the bars division and the ongoing lodges project at Lightwater Valley are all important developments that should enhance the group's ability to successfully navigate the challenges faced."
At 1055 BST, the shares were down 8.5% at 39.80p.
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