High inflation, interest rates and “significant increases” in the minimum wage have made turning a profit “harder to achieve”, the owner of Blackpool Pleasure Beach has said as it fell back into the red.
The attraction, which dates back to 1896, also said the rising costs will force it to close some rides this year and also reduce its headcount.
Some rides will also open later and close earlier than others in a bid to reduce costs.
Blackpool Pleasure Beach added that the cost-of-living crisis has “made customers hesitant” while it does not see any short-term change to the economic conditions it faces.
The update has been included in new accounts filed with Companies House for its latest financial year, the 12 months to 24 March, 2024.
For the period, Blackpool Pleasure Beach posted a turnover of £37.2m, the same as the prior year, while it went from making a pre-tax profit of £286,912 to a loss of almost £1.7m.
National Minimum Wage increases ‘very challenging’
A statement signed off by the board said: “The continuing cost-of-living crisis has made customers hesitant.
“Poor weather during key trading periods also acted as a contributor restricting visits to the park and the hotel.
“High inflation, high interest rates and significant increases in the minimum wage puts additional stress on our cost lines, making profit harder to achieve.”
On Blackpool Pleasure Beach itself, the company added: “The financial year… [saw] the continuation of the challenges felt in the previous year with the continuing cost-of-living crisis putting a squeeze on the disposable income of our customers.
“As a result our attendances have remained relatively flat whilst increasing cost pressures as a result of high inflation and most notably the increase in National Minimum Wage makes trading again very challenging.”
Turnover at Blackpool Pleasure Beach itself edged up from £31.8m to £32.1m while attendances rose by two per cent.
However, cost of sales jumped by 11 per cent and it made a pre-tax loss of £2.7m.
On the group’s hotel, it said: “The cost-of-living crisis still continues to impact the hotel and is reflected in the occupancy numbers which fall against last year and are still below pre-pandemic levels.
“Our customers are being more cautious in order to protect their disposable income.”
The hotel’s turnover fell from £4.6m to £4.3m in the year while the costs of sales ticked up by one per cent to 59 per cent.
Blackpool Pleasure Beach facing ‘extremely difficult’ year
On its future outlook, Blackpool Pleasure Beach said: “Trading in the current year has been extremely difficult due to many external factors beyond our control.
“The cost-of-living crisis is ongoing. We do not foresee any short-term change.
“We continue to review our operation with a view to making the business more efficient and sustainable.
“The company has instigated a headcount review and a review of the assets on park.
“As a result a number of rides will be closed for the forthcoming season. We are also looking at how we profile the opening and closing times go both individual rides and the park itself with a view to maximising efficiency (and therefore cost) whilst balancing it with achieving great customer satisfaction.”