(Alliance News) - Brighton Pier Group PLC on Friday said it expects annual earnings above market forecasts, and also upgraded expectations for its recently-commenced financial year on the back of pent-up demand.
Shares were up 16% at 62.04 pence in London on Friday morning.
The company said it has now settled GBP5 million worth of business interruption insurance claims relating to business lost during the pandemic, with all of the money being received as of Thursday.
On the back of this, it expects earnings for the financial year ended June 27 to be GBP2 million higher than expectations.
And positively, the new financial year has started on a strong note.
With all four of its divisions - Brighton Marine Palace and Pier Co, Eclectic Bars Ltd, Paradise Island Adventure Golf and Lightwater Valley Attractions - open throughout most of the 13 weeks to September 29, the business generated aggregate net sales of GBP15.9 million. This was more than double the same period of 2020 and 44% ahead of 2019, which was a pre-Covid period.
"This year's key trading period has been boosted by pent-up demand and disposable incomes that built up during lockdown, significant increases in domestic holidays, a temporarily reduced rate of VAT and rates relief by way of government support and the addition of the newly acquired Lightwater Valley theme park," the company said.
The company acquired Lightwater Valley theme park in June for around GBP5 million in cash. It said at the time the acquisition will further its aim to create a group operating across a variety of leisure and entertainment assets in the UK.
"The sales over this important 13-week trading period have been very strong across all divisions. I am particularly pleased at the contribution Lightwater Valley has made to the group's results and to see all our bars back open and performing so well after such a long period of closure," added Chief Executive Anne Ackord.
"It is also good to be able to report a new record, with the final bank holiday week of this summer being the first time in the pier's history that it has achieved gross sales in excess of GBP1 million over a single week."
Brighton Pier expects revenue and earnings for the 2022 financial year "significantly ahead" of market expectations due to its first quarter performance.
Brighton Pier made a pretax loss of GBP10.2 million in its 2020 financial year and a profit of GBP2.7 million in 2019.
By Josie O'Brien; josieobrien@alliancenews.com
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Brighton Pier (PIER)