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Merlin Entertainments fined £5m for Alton Towers crash

Tue, 27th Sep 2016 11:19

(ShareCast News) - The owner of Alton towers, Merlin Entertainments is being sentenced for the catastrophic roller-coaster crash in June that injured 16 people, two of which needed leg amputations.The "Smiler" ride collided with an empty car that had stalled further along the loop crushing the legs of those on the front row.The judge said the company was guilty of a "catastrophic failure to assess risk" and should have had a structures system to ensure the safety of the £18m ride.The company was find after a two-day sentencing which heard the gruesome details of the collision which was described as being similar to a 90mph car crash. The victims waited nearly an hour in mid air for the paramedics to arrive.The judge, Michael Chambers QC, said: "This was a needless and avoidable accident in which those injured were fortunate not to have been killed or to have bled to death."It was, in my judgment, aggravated by the lack of proper emergency access to the accident site, which meant that those injured remained trapped in great pain and distress hanging at an angle of 45 degrees some 20ft above the ground for four to five hours before being released by the emergency services and taken to hospital."The company had initially claimed that human error were to blame for the incident but the chambers had dismissed this saying that the company's engineers "were doing their best in a flawed system".Prosecuting for the health and Safety Executive (HSE) Bernard Thorogood, said a series of human errors led to the crash on the ride, but that the "fault here is with the employers", not the staff.According to Chambers the firm "was woefully inadequate" as it fell far short of the safety standards expected of the UK's biggest theme park. If the case had gone to trial the fine would be £7.5m however he had to reduce it due to the early plea.Both Vicky Balch and Leah Washington, who each lost a led were at Stafford crown court on Tuesday along with Joe Pugh, Daniel Thorpe and Chandaben Chauhan who were all seriously injured in the crash.The eight victims lawyer Paul Paxton said the fine was a record for the entertainment industry."The catastrophic failure to assess risk, the inadequate training, inadequate supervision, inadequate management, failure to communicate, failure to put in place safe systems of work."But this has not been about retribution. This has been about finding out why this accident happened and making sure that lessons have been learned, not just by Merlin but by others throughout the industry, and I think my clients can take comfort from that" said Paxton.The head of operations for the Midlands at the health and Safety Executive Neil Craig said: "This avoidable incident happened because Merlin failed to put in place systems that would have allowed their engineers to work safely on the ride while it was running. This made it all too easy for a whole series of unchecked mistakes, not just the single push of a button, to result in tragedy."Since the accident, the company have made improvements to the ride and to their safety protocols. The lessons it has learned have been shared throughout the industry.Chief executive Nick Varney did not say whether he would resign or not during his short statement outside court."From the beginning, the company accepted responsibility for the terrible accident at Alton Towers and made an immediate, sincere and heartfelt apology to all those involved. I repeat that apology again now and did in court yesterday," he said.
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1 Dec 2016 09:31

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29 Nov 2016 07:17

TOP NEWS: Merlin Entertainments Expects "Good Profit Growth" In 2016

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29 Nov 2016 07:05

Merlin Entertainment remains on track for profit growth

(ShareCast News) - In a brusque pre-close statement, Merlin Entertainment said it expected to report "good profit growth" for the full year in line with expectations, revealing a strong Halloween for its resorts but hinting at more soft trading at some other segments. The theme parks owner said unde

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15 Nov 2016 07:04

Tuesday newspaper round-up: Hammond, Carney, Nato, HS2, Glencore

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4 Nov 2016 11:02

Friday broker round-up

(ShareCast News) - Coca Cola HBC: Barclays keeps at underweight with a target price of 1630p. Smith & Nephew: Jefferies stays at buy, 1395p target. Merlin Entertainments: Berenberg starts coverage with a 440p target. South 32: Barclays reiterates overweight with a 200p target. Ladbrokes: UBS keep

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4 Nov 2016 08:32

Berenberg starts Merlin Entertainments at 'hold'

(ShareCast News) - Berenberg initiated coverage of Merlin Entertainments at 'hold' with a 440p price target, saying the stock is "priced to perfection". "We like the company, are impressed with its growth over the last 10 years and believe its strategy will continue to add scale to the business. How

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12 Oct 2016 13:54

DIRECTOR DEALINGS: New Merlin Entertainments CFO Buys 4,500 Shares

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3 Oct 2016 17:03

Broker tips: Euromoney, Centrica, Merlin Entertainments

(ShareCast News) - Canaccord Genuity on Monday cut its rating on Euromoney Institutional Investor to 'hold' from 'buy' but raised its target price to 1,165p from 1,128p. Euromoney reported a "broadly reassuring" trading update last week confirming that full year earnings will be more or less in line

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3 Oct 2016 09:29

HSBC initiates Merlin Entertainments at 'buy'

(ShareCast News) - HSBC initiated Merlin Entertainments at 'buy' and a target price of 530p on Monday, saying the theme park owner remains "high growth, well-diversified and scalable". The bank said following a weak summer it believes there is potential for strong recovery in Merlin's Midway attract

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30 Sep 2016 08:27

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29 Sep 2016 07:22

Merlin posts summer growth despite struggling Midway

(ShareCast News) - Leisure operator Merlin Entertainments posted a trading update on Thursday, outlining its performance over the key summer period. The FTSE 100 firm saw 10.7% total revenue growth across the group, or 3.7% at constant exchange rates. Of that, Midway Attractions and Legoland Parks

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