The owner of the 125-year-old iconic Brighton Pier reported a pre-tax loss of £8.8m, as grim British weather and train strikes compounded inflation in the last year.
Brighton Pier Group, which also operates a string of bars and mini golf courses across the UK, said it had been hit by “challenging” trading conditions, as inflation ate into customer demand.
Inflationary pressures led to “significant cost increases” particularly in food, drinks, wages and insurance, the company said.
Customer demand at Brighton Pier was further affected by “poor weather, train strikes and a fire at the Royal Albion Hotel”, as well as softer demand overall due to the cost-of-living pressures.
Summer footfall at the Pier was down by 18 per cent year on year, as the company changed its full-year reporting date for results from June to December. When it previously reported, it covered the 18 months to 25 December 2022.
Scene in Brighton after a fire at the Royal Albion Hotel. Photo credit: Gareth Fuller/PA Wire
Compared to the previous set of results covering 18-months, its revenue was down from £58.9m to £34.8m, while losses after taxation increased to £7.5m, from a £6.4m profit.
Brighton Pier also owns a number of bars, indoor mini golf sites – which operate under the Paradise Island Adventure Golf brand – and the Lightwater Valley Family Adventure Park in North Yorkshire.
The group sold three loss-making bars in Manchester, Cambridge and Brighton after total bar sales fell by 12 per cent year on year.
“The contraction in disposable consumer income had a severe impact on the younger target demographic, particularly in the late-night-focused sites,” the company said.
“In spite of a number of operational challenges experienced during 2023, the Group delivered a resilient underlying trading performance,” chief executive officer Anne Ackord said.
“While the outlook must continue to be one of caution until economic conditions improve, new developments should enhance the Group’s ability to successfully navigate the challenges faced,” Ackord added.
Among tactics to recoup some losses, Brighton Pier Group plans to charge for admissions to the Pier during peak trading periods, develop lodges at Lightwater Valley and close loss-making sites.
The company’s golf division remained stable, with sales and revenues broadly in line with 2022.
The company will not pay a dividend to its shareholders in 2023, as in 2022.