Brighton Pier revenues fall in H1 amid declining bar sales
During H1, the group’s EBITDA fell from £3m in the same period last year to £1.4m, while its loss before tax reached £1m after logging £700k in profit last year
The Brighton Pier Group has revealed that total revenues were down from £17.3m to £16.2m in H1, following a decline in sales from the group’s bar division.
Following “exceptionally” strong trading from a post-pandemic surge in demand in the first half of 2022, ongoing inflationary pressures – in particular to food, beverage and staff costs – had a significant impact on the group’s operating margins, resulting in lower earnings than in the previous year.
During H1, the group’s EBITDA fell from £3m in the same period last year to £1.4m, while its loss before tax reached £1m after logging £700k in profit last year.
However, the group managed to lower its net debt total of £7.1m as of 25 December 2022 to £4.7m in H1 2023.
While the board has been encouraged to see improved trading in the first three weeks of September, the group expects operating profit for the current financial year to be below expectations.
Anne Ackord, CEO of Brighton Pier Group, 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.
“Combined with the unseasonably wet weather and the hotel fire that disrupted sales on the Pier for the final two weeks of July, trading has been unusually difficult.”
She added: “The group continues to be cash generative and has a robust balance sheet, making it well placed to weather the macroeconomic challenges and execute its longer-term growth strategy. I believe as a result there is significant upside opportunity for the Group in a more typical year.”
