Brighton Pier Group PLC (The) Acquisition of Lightwater Valley Attractions (2726C)

TIDMPIER

RNS Number : 2726C

Brighton Pier Group PLC (The)

17 June 2021

The Brighton Pier Group PLC

(the "Company" or the "Group")

Acquisition of Lightwater Valley Attractions Limited

The Brighton Pier Group PLC, which owns and trades Brighton Palace Pier as well as nine premium bars and eight indoor mini golf sites, announces that it has today acquired the entire share capital of Lightwater Valley Attractions Limited ("Lightwater Valley") for a consideration of up to GBP5 million payable in cash. The acquisition will be funded from a GBP2 million extension to the Group's revolving credit facility and exis t ing cash resources. The transaction is expected to be immediately earnings accre ti ve post comple ti on.

The total considera t ion is being sa t isfied by an initial payment of GBP4.0 million in cash on the comple ti on date (adjusted for working capital and on a debt free cash free basis), deferred considera t ion of GBP0.5 million due at the end of October 2021 and contingent consideration of up to a further GBP0.5 million, subject to Lightwater Valley achieving certain trading targets over the current summer.

Lightwater Valley owns and operates the Lightwater Valley Theme Park, a leading North Yorkshire attraction, which is focused on family days out and is set in 175 acres of landscaped parkland. The Park offers a variety of attractions with rides, amusements, crazy golf, children's outdoor and indoor play, entertainment shows, together with numerous food, drink and retail outlets. The Park also provides popular seasonal events including Hallowe'en (Frightwater Valley) and Christmas (Alice in Winterland).

For its last full year of uninterrupted trading (year ended 28 February 2019 *), Lightwater Valley recorded sales of GBP5.1 million, EBITDA of GBP1.1 million and pre tax profits of GBP0.6 million. As for so much of the leisure industry, the financial year ended 28 February 2021* for Lightwater Valley was heavily impacted by restrictions on capacity together with closures in relation to COVID-19. In these latest statutory financial statements, the company recorded a loss before tax of GBP0.6 million on sales of GBP2.4 million. EBITDA before the write-off of intercompany loans was GBP0.4 million. The total fixed assets being acquired are stated in the balance sheet at GBP4.1 million.

As the restrictions imposed by the COVID pandemic on the UK Leisure Industry continue to be lifted, the Board are confident that Lightwater Valley's trading will resume to normalised levels in the short term.

The Board believes that the extensive space at Lightwater Valley provides a long term growth opportunity for the Group to develop and expand the park. This acquisition executes on the Company's stated strategy to create a growth group, operating across a wide variety of leisure and entertainment assets in the UK. It is the Group's intention to position itself as a consolidator in this sector.

This announcement contains inside information within the meaning of the Market Abuse Regulation.

Commenting on the acquisition, Anne Ackord, Chief Executive Officer, said:

"I am delighted to welcome all the team at Lightwater Valley to The Brighton Pier Group. I believe that, together, we can develop Lightwater Valley into the premier amusement destination across Yorkshire and the surrounding areas.

This acquisition continues the Company's development as a consolidator within the leisure industry, and we are excited to explore further growth opportunities as they arise.

I believe our businesses are ideally suited to take advantage of the pent- up demand as the UK unlocks its restrictions. The booming 'staycation' market is going to significantly grow UK tourism over the coming months as international travel restrictions remain in place, this provides a great opportunity over the summer for all the Group's operations."

* Lightwater Valley Attractions Limited's latest statutory financial statements are for the year ended 28 February 2021. All recent annual financial statements have been prepared under FRS 102.

All Company announcements and news are available at www.brightonpiergroup.com

Enquiries:

 
 The Brighton Pier Group PLC                Tel: [phone] 
 Luke Johnson, Chairman                     Tel: [phone] 
 Anne Ackord, Chief Executive Officer       Tel: [phone] 
 John Smith, Chief Financial Officer        Tel: [phone] 
 
 Cenkos Securities plc (Nominated Adviser 
  and Broker) 
 Stephen Keys (Corporate Finance)           Tel: [phone] 
 Callum Davidson (Corporate Finance)        Tel: [phone] 
 Michael Johnson (Sales)                    Tel: [phone] 
 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

ACQFLFEIRDIDLIL

(END) Dow Jones Newswires

June 17, 2021 07:00 ET (11:00 GMT)