10th Jan 2019 10:13
LONDON (Alliance News) - Leisure and entertainment firm Brighton Pier Group PLC shares slumped Thursday as it warned on the earnings for both its Bars and Pier divisions.
The stock was down 24% on Thursday morning at a price of 48.00 pence each.
Christmas trading in Bars was broadly flat year-on-year, Brighton Pier said, but trading is still "challenging" across some of its estate, meaning earnings for the six months to December will be lower than hoped.
In the Pier arm, as previously noted, trading was hurt during the first half to December due to bad weather over the August Bank Holiday weekend, which continued into September.
Further, issues on the railways to Brighton have impacted visitor numbers. These two headwinds mean, like Bars, earnings in Pier have been lowered than expected in the first half.
The railway problems will continue into its second half, including the February school half-term, Brighton Pier added.
The overall effect on the group of the two divisions' struggles means pretax profit for its year ending June 2019 will be around 18% lower than current consensus, for which it did not give a figure. In its last financial year, pretax profit was GBP2.3 million, up 21% year-on-year.
Its Golf division is meeting expectations, with a new site set to open at Rushden Lakes in April, taking its number of locations to seven.
Chief Executive Anne Ackord said: "Whilst I am disappointed at the rail network disruptions currently affecting the Pier, once they are complete, this will be of great benefit to future visitors travelling to the city and consequently to our Brighton businesses."
"Despite these challenges the company's Pier, Bars and Golf businesses remain well invested, strongly cash generative and well positioned for future growth."
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