The first year of Brighton Pier Group PLC’s acquisition of the city’s Palace Pier has delivered encouraging financial results.
The Brighton Pier Group PLC has reported strong profit growth in the first half of its financial year, as revenue grew off the back of the improving UK tourism market.
The company bought the pier a year ago in April, before which it traded under the name Eclectic Bar Group. Brighton Pier Group said on Tuesday the acquisition has delivered a strong financial performance, following the pier’s first full summer under the company’s new ownership.
Pre tax profit in the 26 weeks ending 25 December grew to £1.9m from £276,000 the year before, as revenue rose to £17.7m from previous £10.7m.
“I believe there are exciting opportunities to further develop the pier business over the coming years. We continue to make good progress rationalising the bars division together with driving operational and financial improvements across the estate,” executive chairman Luke Johnson said in a statement.
“We expect trading to continue to be in line with market expectations through the seasonally quieter second half as management executes the group’s strategy.”
This growth follows the group closing five of the 19 bars they owned, highlighting the strong performance of the UK tourism industry in recent times.
“They were Victorian adventures. Only 60 are left out of the original 100 built. A tiny number make money, of which Brighton is the most successful. It is a wonderful place to trade.”
He added of piers: “They were Victorian adventures. Only 60 are left out of the original 100 built. A tiny number make money, of which Brighton is the most successful. It is a wonderful place to trade.”
He went on to state that a dividend is not on the cards any time soon “I am more interested in capital growth,” Johnson said.