(Alliance News) - Brighton Pier Group PLC on Monday reported a swing to a loss as operating expenses increased and revenue fell, citing train strikes, poor summer weather and a fire at a hotel opposite of its pier.
The London-based leisure and entertainment business that owns and trades the Brighton Palace Pier said for the six months to June 25, it swung to a pretax loss of GBP3.9 million, from a profit of GBP701,000 a year prior.
"The weekend train strikes, exacerbated by exceptionally poor weather in July and August, and the temporary restriction of access following a fire at a major hotel opposite the entrance to the pier towards the end of July, resulted in sales and earnings being lower than expected," Brighton Pier said.
On July 15, a fire broke out at the 200-year-old Royal Albion Hotel, located opposite the pier in Brighton.
Revenue fell 6.5% to GBP16.2 million from GBP17.3 million. Operating expenses increased 23% to GBP17.1 million from GBP13.9 million.
Chief Executive Officer Anne Ackord said that trading in the 12 weeks to September 17 "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 ten trading weeks of the year), trading has been unusually difficult."
However, she added that the company remained well placed to deal with macroeconomic challenges and execute its longer-term strategy.
Brighton Pier shares fell 9.5% to 38.92 pence each on Monday morning in London.
By Tom Budszus, Alliance News reporter
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Brighton Pier (PIER)