Brighton Pier Group (PIER) , a diversified UK entertainment business that owns and operates Brighton Palace Pier, released its unaudited results for the 6 months ended 25 June 2023, citing a "challenging environment" as high inflation, and cautious spending led to an overall decline in sales. However, it still managed to deliver a small increase in sales at Brighton Palace Pier, up 2% from the previous period.
Total revenue amounted to £16.2 million, down from £17.3 million in 2022. Brighton Pier Group attributed most of the sales decline to its Bars division, which faced tough comparisons due to exceptionally strong trading in the first half of 2022 following the post-pandemic surge in demand.
Sales were further hit by bad weather in March and April, leading to lower admissions on the Pier and at Lightwater Valley across the Easter period. Rail disruption also affected footfall to the Pier and some Bars sites.
Group EBITDA stood at £1.4 million, a decrease from £3.0 million in 2022. The group's gross margin was 86%, slightly lower than the 87% recorded in 2022. Its loss before tax, excluding highlighted items, was £1 million, in contrast to a profit of £0.7 million in 2022.
Net cash flow from operations totaled £3.2 million, down from £4.4 million in 2022. Net debt at the end of the hald amounted to £4.7 million, down from £7.1 million thanks to the strong operating cashflow.
Though the group's outlook in the short-to-medium term remains cautious, a longer-term view looks more optimistic. Anne Ackord, Chief Executive Officer, said “The Group continues to be cash generative and has a robust balance sheet, making it well placed to weather the macroeconomic challenges and execute its longer-term growth strategy.”
View from Vox
Brighton Pier owns and trades the famous Brighton Palace Pier, as well as 12 premium bars nationwide (including two ping-pong concept bars) and 8 indoor mini golf sites. Given the macroeconomic challenges out of its control, and with current figures up against an exceptional H1 2022 for its Bars division, Brighton Pier Group has undoubtedly had a tough period.
When trading conditions were more favourable, such as in the first 13 weeks ending March 2023, the group met expectations, with a mild winter initially boosting Pier demand. Unfortunately, heavy rain in March offset this gain.
In the subsequent 13-week period, which typically accounts for 60% of 6-month sales, the Group faced persistent April rains that reduced Pier and Lightwater Valley admissions during the crucial Easter period, further compounded by rail disruptions impacting Pier and some Bars sites.
Once these challenges subside, Brighton Pier Group notes there is significant upside opportunity in a more typical year.
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