Brighton Pier Group makes a splash with strong rebound in trading
The group's financial performance was driven by pent-up consumer demand and government assistance, enabling it to repay £9.1 million of debt (44% of borrowings) and enter the current more challenging market in a good financial position.
In the 18 months ended 25 December 2022, revenue was £58.9m, compared to £13.5m in the 12 months ended 27 June 2021. The company’s pier division brought in the most revenue, £25.3 million, with Brighton Palace Pier being the most visited free-to-enter attraction in the UK, reaching over 4.2 million visitors in 2021. Profit before tax came in at £7.6m compared to £4.2m in the previous period. Finally, group EBITDA was £13.8m, up from £4.7m.
The company said management is optimistic about trading prospects for 2023 and Brighton Pier Group is well-placed to take advantage of any upturn.
Commenting on the results, Anne Ackord, Chief Executive Officer, said: "Like many in our industry, we have had to absorb higher costs relating to wages, energy prices and other inputs. Nevertheless, our businesses remain profitable, well managed and backed by a strong balance sheet and asset base. We are confident in the ability of our management teams to operate successfully in our markets, but we remain mindful of the continuing pressures from the wider economic environment in which we trade."
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An overall impressive trading update from Brighton Pier Group, which has managed to position itself as an industry leader in the leisure and entertainment sector.
The varied economic backdrops in the 18-month period painted two very different pictures. In the earlier months of the reported period, Brighton Pier Group’s diverse offering enabled it to capitalise on the surge in demand for leisure experiences following the final removal of the Covid-19 restrictions.
The strong demand enjoyed by all four of the group's divisions saw group revenue of £15.9 million in the 13-week period to the end of September 2021, an all-time high. Brighton Pier has attributed this surge in revenue to targeted government support through business and VAT relief, alongside consumers sitting on savings built up from Covid-19 restrictions leading to pent-up consumer demand post-pandemic.
As 2022 brought in rising inflation leading to steep cost increases in all areas of the business, Brighton Pier Group maintained that the company still remained profitable, backed by a strong balance sheet and asset base. Despite these external headwinds continuing into 2023, the group said that like-for-like revenues are now ahead of pre-Covid levels, demonstrating that the business is managing to successfully bat away continuing cost pressures, as the company remains profitable and is well-positioned for future growth.
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