REG - Brighton Pier Group - Trading Statement

Brighton PierAnnouncement

25/07/2023 07:00

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RNS Number : 0302H  Brighton Pier Group PLC (The)  25 July 2023

25 July 2023

The Brighton Pier Group PLC

(the "Company" or the "Group")

Trading Update

 

Brighton Pier Group PLC, a diversified UK leisure and entertainment business,
provides the following trading update for the first half of its present
financial year (26 week period ended 25 June 2023).

On 24 April 2023, the Group announced its final results for the 18 month
period ended December 2022. That announcement included an update on the
Group's trading over the first quarter of this year which, although behind the
equivalent exceptional period in 2022, was in line with market expectations.

However, the second quarter has proved more difficult. Sales remain behind
2022, with the current macroeconomic environment leading to a widespread
decline in disposable incomes and consumer confidence. Total sales for the 6
months ending 25 June 2023 are expected to be in the region of £16.2 million.

Ongoing inflationary pressures, meanwhile, in particular in relation to food
& beverage and staff costs have adversely affected the Group's operating
margins in the current reporting period.

The combined effect of these lower sales with the inflationary cost pressures
are expected to result in earnings after tax below market expectations.

The Board notes that the Group is currently in the middle of its busiest
period in July and August. However, July 2023 trading has been impacted by
unseasonably  poor weather, train strikes and most significantly the impact
of the fire at a major hotel opposite the entrance to the Pier, which resulted
in some disruption for about a week. We are pleased to confirm that access to
the Pier is now back to normal.

The summer months represent a significant opportunity for the Group, with
these two months historically contributing approximately 30% of annual Group
sales, which in turn equate to a significant proportion of the earnings of the
Group for the year.

The management team continue to mitigate the economic pressures faced wherever
possible, and all four of the Group's divisions will remain profitable for the
full year despite the challenges.

The Board's short to medium term outlook remains cautious.

Anne Ackord, Chief Executive Officer, said:

"The Group is navigating a challenging trading environment, with persistent
high inflation and reduced footfall continuing to affect disposable incomes
across many of the Group's trading sites. When combined with the ongoing cost
pressures we face it has led to lower than expected sales and earnings in the
first half of 2023.

While we still have many of the key summer weeks to come, recent trading in
July has been impacted by a number of events outside of our control namely
weekend train strikes, stormy weather and the hotel fire across the road from
the pier which has disrupted sales. We will still attempt to capitalise on the
forthcoming school holiday period of August, traditionally the busiest and
most profitable period in our year.

With current economic trends set to continue in the short to medium term the
outlook must continue to be one of caution".

All Company announcements and news are available at www.brightonpiergroup.com
(http://www.brightonpiergroup.com)

This announcement contains inside information within the meaning of the Market
Abuse Regulation.

Enquiries:

 The Brighton Pier Group PLC
 Luke Johnson, Chairman                                Tel: 020 7016 0700
 Anne Ackord, Chief Executive Officer                  Tel: 01273 609361
 John Smith, Chief Financial Officer                   Tel: 020 7376 6300

 Cenkos Securities plc (Nominated Adviser and Broker)
 Stephen Keys (Corporate Finance)                      Tel: 0207 397 8926
 Callum Davidson (Corporate Finance)                   Tel: 0207 397 8923
 Michael Johnson (Sales)                               Tel: 0207 397 1933

 Novella (Financial PR)                                Tel: 0203 151 7008
 Tim Robertson
 Claire de Groot
 Safia Colebrook

 

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