15th Feb 2023 14:20
(Alliance News) - Brighton Pier Group PLC on Wednesday said trading has been in line with market expectations, but it cautioned on the impact of declining UK consumer confidence and rising costs.
Shares in the firm were 10% lower at 61.47 pence on Wednesday afternoon in London.
The leisure and entertainment business said it performed well in the 18 months to December 25, and continues to trade in line with market expectations.
For the 18-month period, the London-based company reported revenue totalling GBP58.9 million, up 19% from GBP49.4 million against the same pre-Covid 18-month period ended December 26, 2019.
Brighton Pier explained the growth was driven by strong trading across all its divisions, pent-up consumer demand, and UK government support, such as temporary reductions in VAT and the 'Eat Out to Help Out' scheme back in 2020.
Brighton Pier also noted benefits from the acquisition of family adventure park Lightwater Valley in June 2021.
On a like-for-like basis, sales were up 9% in the 18-month period against the same pre-Covid period in 2019.
In the first 12 months of the period, Brighton Pier said it benefited from Covid-19 related government assistance and pent up demand as the UK emerged from lockdown. The final 6 months, however, witnessed a decline in consumer confidence and increased costs across the sector.
Revenue in the six months ended December 25 totalled GBP18.8 million, down sharply from GBP22.8 million the previous year.
It cautioned that the two periods were "not easily compared", due to the "exceptional" level of government VAT support and pent-up demand post-Covid in the prior period.
When compared to the same period in 2019, revenue was up 8% but like-for-like sales, excluding Lightwater Valley, were down 2%, it said. This reflected a "general dip in consumer confidence in response to the difficult economic environment," Brighton Pier said.
Chief Exeuctive Anne Ackord said: "Like many in our industry, we have had to absorb higher costs relating to wages, energy prices and other inputs. However, going into 2023, our businesses remain profitable, well managed and backed by a strong balance sheet and asset base."
Brighton Pier recently changed its accounting reference date to the end of December from the end of June. Its results for the 78 weeks ended December 25 will be published on April 24.
By Heather Rydings, Alliance News senior economics reporter
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