Brighton Pier Group reports ‘lower than expected' sales
Brighton Pier Group has announced a decline in total revenues due to "ongoing inflationary pressures" in its unaudited results for the six months ending 25 June 2023.
The entertainment business is comprised of four divisions: Brighton Palace Pier; the eight-strong Paradise Island Adventure Golf; bars such as Embargo República and Lola Lo; and Lightwater Family Adventure Park.
It reported total revenues of £16.2m compared to £17.3m over the same period in 2022, while group earnings before interest, tax, depreciation and amortisation (EBITDA) was at less than half of 2022 figures, falling from £3m to £1.4m.
The company also made a loss before tax of £1m, whereas previously it had made a profit of £0.7m in 2022.
Brighton Pier Group said its bar division was particularly prone to the contraction in consumers' disposable income.
Meanwhile, Brighton Palace Pier experienced quieter trading as a result of the weekend train strikes, poor summer weather and the temporary restriction of access following a fire at the Royal Albion hotel in July.
Operating profit for the financial year is "likely to be below current expectations", the board revealed.
Chief executive Anne Ackord said: "As highlighted in our last trading update, the group is navigating a challenging environment, with persistent high inflation and cautious spending by consumers negatively impacting trading. When combined with the ongoing cost pressures, this has resulted in the group recording lower than expected sales and earnings in the first half of 2023.
"Trading in the 12 weeks to 17 September 2023 has been further impacted by events outside of our control. The regular weekend train strikes in particular have reduced visitor numbers on the pier by 18% versus comparable weeks in 2022.
"Combined with the unseasonably wet weather and the hotel fire that disrupted sales on the pier for the final two weeks of July (two of the top 10 trading weeks of the year), trading has been unusually difficult."
