Palace Pier boss Luke Johnson blamed poor weather and the £1.3 million cost of revamping Horatio’s Bar and the Palm Court restaurant for a dip in half-year profits.
The company, the Brighton Pier Group, reported a drop in turnover and pre-tax profit in the six months to Christmas Eve.
Turnover – or revenue – fell to £16 million from £17.7 million in the same period in 2016. This was also partly a result of closing six poorly performing bars around the country.
Pre-tax profit – a widely used measure of a company’s financial health – went down from £2.65 million to £2.34 million.
Executive chairman Luke Johnson said: “During the period the group acquired Paradise Golf and transformed the bars and Palm Court restaurant on Brighton Palace Pier.
“The business is now well positioned to grow across all of its operations.”
The company said: “The results for the 26 weeks to (Sunday) 24 December 2017 are in line with the trading outlook published in the company’s results announcement on (Saturday) 30 September 2017.
“The highlight for the period was the acquisition on (Friday) 8 December 2017 of Lethington Leisure Limited, owner and operator of Paradise Island Adventure Golf, for a total consideration of £10.8m on a cash-free, debt-free basis.”
In a statement to shareholders the Brighton Pier Group said: “The sales shortfall for the period was a result of three key factors.
“Firstly, due to rain and strong winds, trading during the pier’s peak summer period of August and September was mixed and did not match the strong performance of the same period in the previous year.
“Secondly, the group made the decision to utilise the winter months to close and improve the principal catering and hospitality offerings on the pier.”
The third factor meant the loss of £1.2 million in bar sales revenues in the 26-week period to December 2016.
This related to the six marginal bar sites that were closed during the previous financial year. There was no comparative figure in the current period.
The company told investors: “The ambitious investment plan to improve facilities commenced with the redevelopment of Horatio’s Bar, completed in December.
“Benefiting from an enviable position on the pier with views across to the Brighton seafront, this bar has been transformed into a gastro pub offering with the added attraction of a live music platform.
“The upgrade and the extension to the outside terraces have increased overall capacity as well as enhancing the bar’s ability to diversify its offer.
