Brighton Pier Group has positioned itself well for growth across the breadth of its operations through the continuation of its acquisition strategy. All this in spite of a difficult H2 2017 operational climate.
Interim results for the 26 weeks up to 24 December 2017 for the Brighton Pier Group showed that despite adverse weather conditions impacting results at its titular location the company is well placed for growth in full-year 2018, following significant structural improvements and acquisitions.
Of most note for the group was the purchase of Paradise Island Adventure Golf for £10.5m, completed 8 December, 2017, which will add six locations to the group’s existing portfolio of experiential leisure venues.
Writing in the statement Luke Johnson, executive chairman said: “During the period the group acquired Paradise Golf, and transformed the bars and Palm Court restaurant on Brighton Palace Pier.
The business is now well positioned to grow across all of its operations.”
In the period, Brighton Pier Group posted overall pre tax profits of £2.34m, down marginally from £2.65m on the year prior and turnover of £16m, down from £17.74m.
These shortfalls were due to three key factors, according to the Group: firstly, adverse weather conditions in August and September impacted on peak trading in comparison to the previous year.
Secondly, the group utilised the winter months to close and improve the principal catering and hospitality offerings on the pier.
Finally, £1.2m of sales in the period the previous year related to the six marginal bar sites that were closed during FY 2017 with no comparative in the current period.
The Group has additionally allocated capital to renovations at a number of venues on the Brighton Palace Pier in order to increase not only its capacity for amenity spend, but boost its year-round performances with indoor leisure areas.
These property upgrades and acquisitions represent the continuation of a portfolio diversification strategy that has seen the Group head operations of a number of bar venues throughout Brighton and a spate of experiential leisure businesses nationwide.
“The long-term strategy of the enlarged Group is to create a growth company that operates across a diverse portfolio of leisure and entertainment assets in the UK,” the statement read.
“The Group will achieve this objective by way of organic revenue growth across the whole estate, together with the active pursuit of future potential strategic acquisitions of experiential leisure businesses, thus enhancing its portfolio and ability to realise synergies by leveraging scale.”
