Brighton Pier Share Discussion Threads

[dartboard1] 26/7/2024 08:17

So last year Ebitda was 4.2m. Analyst forecast for 2024 was 5.5m, and now expecting below that (how much below... that's the question).They're very keen to blame the weather, which is plausible... but I wonder if they have stuffed up in bringing in the admission fee and keeping punters off the pier. Hard to tell, but hopefully the CFO is crunching the numbers and listening to members of the public ... Go and open more golf venues !!!

[dartboard1] 26/7/2024 08:06

Surely global warming would be a positive on the Brighton weather ... in summer.

[thecroots] 26/7/2024 07:53

It cant fall much further!!

The next 10 day weather looks good so it should help..

[pugugly] 26/7/2024 07:46

Surprised share price has not fallen further -Now a gamble on English weather and who would bet on that with climate change and increasing rain and storms.

[thecroots] 26/7/2024 06:09

darn it.

at least its only the pier that's down on previously reported. nothing they can do about the weather I guess.

we need a really good summer weather now...

[thecroots] 23/7/2024 12:16

Although the weather hasn't been great , it is better than last year.

The weather has been OK for the last 2-3 weeks down south.

I am hoping that the Euros and England making the finals may have boosted sales on the pier as they had a big screen showing all the games.

I would have thought they would have done the update at the end of July allowing them to capture the dry spell that is forecast for the next 10 days...

It would be good if that have closed the gap on last year....

[kirmich] 23/7/2024 06:40

Weather is important, but it looks to be changing a bit for the positive

[ijamlon] 23/7/2024 06:02

I think there's a good chance of an update this week. This appalling weather is not going to have helped, patient investors might need to stay patient! On the plus side I note that the majority of recent reviews about LWV are positive - though also a lot of mention about lack of queues.

[dartboard1] 06/7/2024 12:29

Google Paradise Island Golf

[dartboard1] 06/7/2024 12:29

Must be wrong... can't include salaries... so even less of a good earnings indicator.

[davidosh] 05/7/2024 09:26

Is there a link showing all the golf sites?

[dartboard1] 05/7/2024 09:23

Further to this. Cost of sales for golf is 100,000. This must be salaries of attendants, cost of f&b on site, and maybe a few thousand golf balls a year. But not much else. A great business model, but excluding rent seems a bit silly. I've been to the one in Derby. Kids had fun, but it is in need of a bit of a refresh. Looks a bit old and tired, so maybe needs capex of 50k per site and rotate the refresh doing one a year.I'm sure they're on it though and have only been to one.

[dartboard1] 05/7/2024 09:18

People keep raising the 98% GP on the golf.However included in depreciation is the rental costs for the sites. So you have to go down to operating profit to see the return on investment really.Operating profit wise golf is still the best return, but using GP dresses up the return to look a little too good.I agree, golf is non-weather dependent so provides a bit of a hedge there from the other assets.

[thecroots] 05/7/2024 08:42

No problem!

[mr clive] 05/7/2024 08:11

Indeed. Thank you for your regular commentary - helps keep me sane!

[thecroots] 05/7/2024 08:08

Hi Mr Clive,

Thought someone was adding then!!

Probably like a lot of us here, i bought in for the medium term. PIER is a steal at these pries so we shouldn't concern ourselves too much with these movements.

Kirmich, makes sense to add in alignment with the weather.

I cannot see the weather being as bad as last year.

[thecroots] 05/7/2024 08:07

Hi Mr Clive,

Thought someone was adding then!!

Probably like a lot of us here, i bought in for the medium term. PIER is a steal at these pries so we should concern ourselves too much with these movements.

Kirmich, makes sense to add in alignment with the weather.

I cannot see the weather being as bad as last year.

[mr clive] 05/7/2024 07:59

Long time holder, first time poster.

Re liquidity, I was recently able to roughly double my holding via II, adding 70,000 at an average of 44.8p - seemed a good idea at the time! (thecroots commented 18th June)

Had to buy in 2 or 3 trenches and paid about .75p over the top, but not too outrageous. The share price has dropped ever since, so might take more than a few £10k buys to move things along.

Anyway, no plans to sell and happy where I am - see current value in 80p - £1 range with scope to grow, so plenty of headroom. Time will tell!

[kirmich] 05/7/2024 07:28

Just changed my order to 10.000 at 0,39

If the current + prospected weather were a bit better, I would try to double my position quickly, now rather slowly as it is pretty weather dependent.

[kirmich] 05/7/2024 07:06

Hi mr Croot,

It was me who had the buy in and only got 2500. Will try to buy again today.

Just checked, they bought the Pier in 2016 for 18 million. Maybe they overspent, but given the cashflow it had produced since then, I doubt it.

I would keep doing what they are doing, dont get into more debt by expanding as it is too expensive for the moment, use the cashflow to further pay down debt (800.000 interest paid last year on the debt) and if you want to spend something, use the autorithy to buy back shares, even for a “minimal”; amount of 500.000 pounds, it would do wonders.
And pray for a few weekends of great weather in the UK

As is normal, everybody has its own ideas how to progress, but I think everybody agrees this is a well managed company. Look at what they survived the last few years

[thecroots] 05/7/2024 06:56

Hi Kirmich,

Bought on the open market but probably would have to sell via a different avenue. Not looking to sell for at least 2-3 years.

One thing to be considered, is that both Cavendish and Edison have sent out research notes. Perhaps, yesterday was a tree shake to gain some share to sell. Never thought about it until Davidosh said he wanted to buy 10k shares but only managed to buy 2500.


Bookbroker, they NEED the indoor golf. Its their hedge against bad weather. Why would you want to sell a business that has little overheads generating gross of 98%. They are actively looking for further sites.

I have always said they should introduce a dividend. Doesn't have to be a big % yield

[jm6783] 05/7/2024 06:32

The highest RoE and least capital intensive business is golf. To my mind, that is the business they should be expanding.

[bookbroker] 04/7/2024 22:27

The best outcome is to sell the bars, indoor golf and focus on the two outdoor attractions. BP does not need too much investment, just upgrade and improvement. LW. has amazing potential for the scope, but that needs capital.

[ijamlon] 04/7/2024 20:48

The liquidity is especially bad because of the now hilarious £14mln market cap, fully 70% is locked up by 3 shareholders who sit on it. So we're essentially dealing with a £4mln free float at most, which is microscopic and off limits for almost any institution now. Those of us who have bought large amounts, we are probably stuck with them until there's some big event unless we want to decimate the share price. There are various strategies they could deploy for improving the liquidity (targeted buybacks or share issuance, a large transaction - purchase or sale, dividends, scrips) but the bottom line is it needs to be bigger and the best liquidity generation is to grow.