17th Mar 2020 14:03
(Alliance News) - Brighton Pier Group PLC on Tuesday reported increased earnings in its interim results, but noted the Covid-19 outbreak could result in decreased footfall.
The stock was trading 1.1% lower at 44.00 pence each on Tuesday afternoon in London.
For the 26 weeks to December 29, the company, which operates Brighton Pier as well as a number of bars, reported pretax profit of GBP2.0 million on revenue of GBP17.3 million. For the comparative period the prior year, it posted pretax profit of GBP1.7 million on revenue of GBP16.5 million.
The increased revenue was partly attributed to the launch of two new sites in Paradise Island Adventure Golf, contributing a total of GBP700,000 during the period.
"I am delighted to be able to report that the half year in line with management expectations. Our two new golf venues at Rushden Lakes and Plymouth Drake's Circus, together with our refurbished bar in Putney have all traded strongly and ahead of expectations. The pier achieved a record August bank holiday week, with revenues just shy of GBP1million," said Chief Executive Anna Ackord.
Gross margin increased by increased by 85 basis points in comparison with the same period the previous year. Basic earnings per share was reported at 3.9 pence from 3.5p the year prior.
Post period end, Brighton Pier said trading in February was hurt by storms Ciara, Dennis and Jorge in the UK. It added that the storms resulted in rides being closed for much of the month and on some days, resulted in complete closure of the pier.
The company also noted that the Covid-19 outbreak could see the UK government impose restrictions, which could hurt its business both in the short-term and into the summer. However, it said it has sufficient resources to continue its operations for the foreseeable future.
"The UK and the leisure business in particular are facing some unpredictable and difficult months as the coronavirus continues to evolve. We are monitoring this unprecedented situation closely but we believe we have a strong balance sheet, supportive bank and a strong team to meet the challenge. Despite the current concerns, in the medium to long-term the company's pier, bars and golf businesses remain well invested, strongly cash-generative and well-positioned for future growth," Ackord added.
At the period end, cash and cash equivalents were GBP2.2 million up from 2.0 million the year prior, with net debt at GBP11.0 million.
By Ife Taiwo; [email protected]
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