Shares in leisure operator Brighten Pier (PIER:AIM) leapt 18% to 78.1p on Monday after the group said revenues in the first 13 weeks of the new financial year to the end of September were 145% ahead of last year and 44% above pre-pandemic levels.
For the year to 27 June, the group was severely impacted by lockdown restrictions with late-night bars closed while the Pier was only open for 27 weeks and golf centres open for 11 weeks.
However, business interruption insurance payments of £5 million and strong trading from the Pier and golf sites after reopening helped the company report pre-tax profits of £4.2 million compared with a £10.2 million loss, despite revenues dropping 40% to £13.5 million.
PENT-UP DEMAND
Since reopening, the company benefited from pent-up demand and the ‘significant’ outdoor seating capacity it invested in prior to the pandemic which allowed visitors to remain safely distanced. The Pier division contributed £2 million of earnings during the summer.
The venue is the second most-visited landmark outside London and attracted around five million people in 2019.
Chairman Luke Johnson commented: ‘This strong summer 2021 trading performance, coupled with the benefits from VAT and rates relief, indicates that this year could be an exceptional opportunity for the Group to recover some of its lost earnings if it is able to continue trading without further restrictions.’
During the year the company paid £4.8 million to aqcuire North Yorkshire based theme park Lightwater Valley, which operates from 175 acres of landscaped parkland and is a popular day-out location for families.
The board believes the extensive outdoor space provides a long-term growth opportunity for the group while trading was said to be ‘materially’ ahead of management’s initial expectations.
The acquisition adds a fourth division to the firm's existing businesses which comprise Brighton Pier, a golf division which operates eight indoor mini-golf sites in high footfall retail locations, and leisure centres and an estate of bars in university towns.
Following today’s pleasing results analysts at Cenkos upgraded their adjusted 2022 earnings per share forecast by 85% to 11.9p and reaffirmed their buy rating.
