Shares in the company that owns the Palace Pier, in Brighton, fell after a cautious trading statement to the stock market today (Wednesday 15 February).
The company’s stock fell just over 7p from 68.5p to 61.45p, valuing the business at £22.9 million – a fall of just over 10 per cent.
The Brighton Pier Group PLC said that costs had risen, including wages and energy prices, while consumer confidence had waned.
The company, which owns a portfolio of leisure and entertainment businesses including the pier, said that trading was “in line with market expectations” and borrowing was down.
The trading statement covered the 78-week period to (Sunday) 25 December because the company had moved its “accounting reference date” from the end of June to the end of December.
The company said: “Overall, the group performed well and continues to trade in line with market expectations having ended the 18-month period with a stronger balance sheet.
“In the first 12 months, the group benefited from covid-19 related government assistance and pent-up demand as the UK emerged from lockdown while the final six months witnessed a decline in consumer confidence and increased costs across the sector.
“For the 78-week period as a whole, the group reports total unaudited revenues of £58.9 million (2019: £49.4 million), up 19 per cent on the same pre-covid 78-week period ending (Thursday) 26 December 2019.
“This was driven by strong trading across all the group’s divisions, benefiting from the acquisition of Lightwater Valley (theme park) in June 2021, support from the government’s temporary reductions in VAT, the ‘Eat Out to Help Out’ scheme and pent-up consumer demand.
“On a like-for-like basis, sales were up 9 per cent against the same pre-covid 78-week period in 2019
“Since the end of the previous audited financial year (52 weeks ended Sunday 27 June 2021), the group has improved its balance sheet having repaid £9.1 million of debt, reducing borrowings from £20.4 million to £11.3 million and reducing its net debt by 46 per cent from £13.1 million to £7 million.
“Revenue of £18.8 million for the 26 weeks ended (Sunday) 25 December 2022 (2021: £22.8 million) is not easily compared with the same period in 2021 due to the exceptional level of government VAT support and pent-up demand post covid-19 in the prior period.
“However, when compared to the same period in 2019, revenue was up 8 per cent and like-for-like sales (excluding Lightwater Valley) were down 2 per cent.
“This reflects a general dip in consumer confidence in response to the difficult economic environment.
“Preliminary results for the 78 weeks ended (Sunday) 25 December 2022 will be published on (Monday) 24 April 2023.”
