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PIER Brighton Pier Group Plc (the)

44.50
-0.50 (-1.11%)
24 May 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Brighton Pier Group Plc (the) LSE:PIER London Ordinary Share GB00BG49KW66 ORD 25P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  -0.50 -1.11% 44.50 43.00 46.00 45.00 44.50 45.00 14,699 08:03:16
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
Drinking Places (alcoholic) 58.91M 6.37M 0.1709 2.60 16.59M

Brighton Pier Group PLC (The) Interim Results (4394N)

25/09/2023 7:00am

UK Regulatory


Brighton Pier (LSE:PIER)
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TIDMPIER

RNS Number : 4394N

Brighton Pier Group PLC (The)

25 September 2023

25 September 2023

The Brighton Pier Group PLC

(the "Company" or the "Group")

Unaudited interim results for the 6 months ended 25 June 2023

The Brighton Pier Group today announces its unaudited results for the 6 months ended 25 June 2023. Total revenues for the Group were GBP16.2 million (2022: GBP17.3 million), following a challenging second quarter as previously announced by the Group. The majority of this sales decline was from the Bars division which faced tough comparable numbers, following exceptionally strong trading from a post-pandemic surge in demand in the first half of 2022. Ongoing inflationary pressures, in particular to food, beverage and staff costs have had a significant impact on the Group's operating margins in the first half of 2023, resulting in lower earnings than in the previous year.

Financial highlights

   --        Total revenue in the period was GBP16.2 million (2022: GBP17.3 million). 
   --        Group EBITDA* was GBP1.4 million (2022: GBP3.0 million). 
   --        Group gross margin was 86% (2022: 87%). 

-- Loss before tax (excluding highlighted items) was GBP(1.0) million (2022: profit of GBP0.7 million).

   --        Adjusted EPS was (1.7)p (2022: 0.9p). 
   --        Net cash flow from operations was GBP3.2 million (2022: GBP4.4 million). 
   --        Net debt was GBP4.7 million (25 December 2022: GBP7.1 million). 

* EBITDA is detailed in Note 7 to the financial statements.

Principal developments

-- Brighton Palace Pier sales performance was up 2% versus 2022, but down GBP(0.2) million on EBITDA at GBP0.5 million (2022: GBP0.7 million).

-- The Bars division suffered from a contraction in consumers' disposable incomes resulting from the challenging macroeconomic environment, with sales down across the estate.

-- The Golf division saw lower footfall across the estate in June and higher costs but with the exception of June, trading has been consistent, with the division generating GBP1.4 million of EBITDA (2022: GBP1.9 million).

-- Lightwater Valley added new dinosaur-themed attractions for 2023. Admissions were down versus the prior year primarily due to wet weather, but the park achieved a new weekend record number of visitors during the Coronation of King Charles III in May.

Outlook

   --        As reported in the 25 July 2023 trading update, the weekend train strikes, exacerbated by exceptionally poor weather in July and August, and the temporary restriction of access following a fire at a major hotel opposite the entrance to the Pier towards the end of July, resulted in sales and earnings being lower than expected. 

-- These factors continued to affect trading in the 12-week period ending 17 September 2023 resulting in total sales of GBP12.3 million, down GBP(0.3) million versus the previous year (2022: GBP12.6 million).

-- Whilst the board has been encouraged to see improved trading in the first 3 weeks of September, macroeconomic challenges continue to impact the business. This, together with the weaker than expected summer trading period, has led the Board to conclude that operating profit for the current financial year is likely to be below current expectations.

   --        The Group's outlook in the short-to-medium term remains cautious. 

Anne Ackord, Chief Executive Officer, said:

"As highlighted in our last trading update, the Group is navigating a challenging environment, with persistent high inflation and cautious spending by consumers negatively impacting trading. When combined with the ongoing cost pressures, this has resulted in the Group recording lower than expected sales and earnings in the first half of 2023.

Trading in the 12 weeks to 17 September 2023 has been further impacted by events outside of our control. The regular weekend train strikes in particular have reduced visitor numbers on the Pier by 18% versus comparable weeks in 2022. Combined with the unseasonably wet weather and the hotel fire that disrupted sales on the Pier for the final two weeks of July (two of the top ten trading weeks of the year), trading has been unusually difficult.

The Group continues to be cash generative and has a robust balance sheet, making it well placed to weather the macroeconomic challenges and execute its longer-term growth strategy.

I believe as a result there is significant upside opportunity for the Group in a more typical year".

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

Enquiries:

 
 The Brighton Pier Group PLC                   Tel: 020 7376 6300 
 Luke Johnson, Chairman                        Tel: 020 7016 0700 
 Anne Ackord, Chief Executive Officer          Tel: 01273 609 361 
 John Smith, Chief Financial Officer           Tel: 020 7376 6300 
 
 Cavendish Securities plc (Nominated Adviser 
  and Broker) 
 Stephen Keys (Corporate Finance)              Tel: 020 7 397 
                                                8926 
 Callum Davidson (Corporate Finance)           Tel: 020 7397 8923 
 Michael Johnson (Sales)                       Tel: 020 7397 1933 
 
 Novella (Financial PR)                        Tel: 020 3151 7008 
 Tim Robertson 
 Claire de Groot 
 Safia Colebrook 
 

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

About The Brighton Pier Group PLC

The Brighton Pier Group PLC is a UK entertainment business spread across four divisions:

-- Brighton Palace Pier offers a wide range of attractions including two arcades (with over 300 machines) and eighteen funfair rides, together with a variety of on-site hospitality and catering facilities. According to Visit Britain, it was the most popular free outdoor attraction in England with over 4.6 million visitors in 2022 .

-- The Golf division ( which trades as Paradise Island Adventure Golf) operates eight indoor mini-golf sites at high footfall retail and leisure centres.

-- The Bars division trades under a variety of concepts including Embargo República, Lola Lo, Le Fez, Lowlander and Coalition. The Group's bars target a customer base of students' midweek and stylish over-21s and professionals at the weekend.

-- Lightwater Valley Family Adventure Park, a leading North Yorkshire attraction, is focused on family days out. Set within 175 acres of landscaped parkland, the park operates a variety of attractions including rides, amusements, crazy golf, children's outdoor and indoor play, entertainment shows, together with numerous food, drink and retail outlets.

Business Review

Introduction

The Group's strategy remains focused on capitalising on the potential of its diversified portfolio of leisure and family entertainment assets in the UK. However, the Group is navigating a uniquely challenging trading environment, with persistently high inflation leading to a decline in consumer confidence and discretionary spend. This, combined with significant ongoing cost increases, has led to lower sales and earnings in the 6 months ended 25 June 2023 (2022: 6 months ended 26 June 2022).

Operational review

The first 13-week period to the end of March 2023 saw the Group trading in line with expectations. A comparatively mild winter resulted in strong initial demand at the Pier, but this was offset by the wettest March in over 40 years. The high-margin Golf division continued to perform well during this period. The Bars division saw some softness in trading but was behind 2022 primarily due to exceptional trading following the surge in demand seen post-pandemic. Lightwater Valley was closed during this time.

In the latter 13-week period, which typically represents approximately 60% of sales in the 6 month period, trading suffered across the Group as previously announced, with continued wet weather in April leading to lower admissions on the Pier and at Lightwater Valley across the key Easter period. Rail disruption also affected footfall to the Pier and some Bars sites.

Cost increases during this period were particularly severe, with significant increases to food prices contributing to lower gross margins at the Pier and Lightwater Valley, which were both down 3% versus 2022. Wage increases, meanwhile, resulted in lower operating margins across the Group.

Financial review and KPIs

Total Group revenue for the period was GBP16.2 million (2022: GBP17.3 million).

Revenue split by division :

-- Pier division GBP7.5 million (2022: GBP7.3 million)

-- Golf division GBP3.2 million (2022: GBP3.4 million)

-- Bars division GBP4.1 million (2022: GBP5.1 million)

-- Lightwater Valley GBP1.4 million (2022: GBP1.5 million)

Total Group EBITDA for the period was GBP1.4 million (2022: GBP3.0 million).

EBITDA split by division :

-- Pier division GBP0.5 million (2022: GBP0.7 million)

-- Golf division GBP1.4 million (2022: GBP1.9 million)

-- Bars division GBP0.4 million (2022: GBP1.1 million)

-- Lightwater Valley GBP(0.3) million (2022: GBP(0.1) million)

-- Group overhead costs GBP(0.6) million (2022: GBP(0.6) million)

Group gross margin for the period was 86% (2022: 87%).

Highlighted items totalling GBP3.0 million of charges (2022: GBPnil) were recognised during the period. These charges reflect:

   --        GBP1.1 million - impairment of goodwill in Lightwater Valley; and 

-- GBP1.9 million - impairment charges to property, plant and equipment and right-of-use assets in the Bars division.

Group loss on ordinary activities before tax (excluding highlighted items) was GBP(1.0) million (2022: profit of GBP0.7 million).

Group loss on ordinary activities after tax was GBP(3.6) million (2022: profit of GBP0.4 million).

In summary, for the 6 month period ended 25 June 2023:

-- Revenue: GBP16.2 million (2022: GBP17.3 million)

-- Operating (loss)/profit: GBP(3.2) million (2022: GBP1.3 million)

-- Group EBITDA: GBP1.4 million (2022: GBP3.0 million)

-- Operating (loss)/profit excluding highlighted items*: GBP(0.3) million (2022: GBP1.3 million)

-- (Loss)/profit before tax excluding highlighted items*: GBP(1.0) million (2022: GBP0.7 million)

-- (Loss)/profit before tax: GBP(3.9) million (2022: GBP0.7 million)

-- (Loss)/profit for the period: GBP(3.6) million (2022: GBP0.4 million)

-- Net debt at the end of the period: GBP4.7 million (25 Dec 2022: GBP7.1 million)

   --        Basic (losses)/earnings per share excluding highlighted items*:                   (1.7)p 

(2022: 0.9p)

-- Basic (losses)/earnings per share: (9.6)p (2022: 1.1p)

   --        Diluted (losses)/earnings per share excluding highlighted items*:               (1.7)p 

(2022: 0.9p)

-- Diluted (losses)/earnings per share: (9.6)p (2022: 1.1p)

* Highlighted items are detailed in Note 4 to the financial statements.

Cash flow and balance sheet

The Group generated net cash flow from operations of GBP3.2 million (2022: GBP4.4 million), after interest and tax payments , all of which was available for investment or the repayment of debt.

Capital expenditure in the period totalled GBP0.4 million (2022: GBP0.6 million) across the Group .

During the period, the Group made net debt repayments of GBP0.4 million (2022: GBP2.8 million ), which includes the final repayment of the Group's Coronavirus Business Interruption Loans (totalling GBP5.0 million).

Total bank debt at the end of the period was GBP10.9 million (25 December 2022: GBP11.3 million). With the Group's Coronavirus Business Interruption Loans now fully repaid, remaining debt relates to the term loan .

At the period end, cash and cash equivalents were GBP6.2 million (25 December 2022: GBP4.2 million).

Consequently, net debt at the period end stood at GBP4.7 million (25 December 2022: GBP7.1 million). The Directors continue to take a cautious approach to net debt levels for the Group.

The Group currently has an undrawn revolving credit facility of GBP1.0 million, giving total cash availability to the Group of GBP 7.2 million as at the period end .

Details of the Group's banking covenants can be found on page 90 of the December 2022 Annual Report.

Trading for the 12 weeks to the 17 September 2023

Total sales for the 12-week period to 17 September 2023 were GBP12.3 million, down GBP(0.3) million versus the previous year (2022: GBP12.6 million). This shortfall was primarily due to a significant reduction in footfall to the Pier, which saw visitor numbers decrease by 18% compared to 2022.

Total sales for the Pier were GBP6.0 million, down GBP(0.5) million versus 2022 (2022: GBP6.5 million), due to a combination of one-off factors previously noted.

Conversely, the poor weather resulted in stronger trading in the Golf division, where sites are located inside larger shopping centres. Total sales of GBP1.7 million were GBP0.2 million higher than the previous year (2022: GBP1.5 million).

Lightwater Valley traded ahead of 2022, with total sales of GBP2.7 million, up GBP0.3 million (2022: GBP2.4 million). This was due to increased visitor numbers to the park, which were 24% up on last year principally due to warm weather in September and several different promotional offers that were made available to guests. As a result of these offers, overall spend per head was lower than in 2022.

The Bars division continues to be impacted by the headwinds in the UK economy. Its younger demographic has been more severely affected by price inflation, resulting in lower spends and reduction in numbers of visits. Total sales were GBP1.9 million, down GBP(0.3) million versus last year (2022: GBP2.2million).

Outlook and strategy

While current economic conditions continue to create an uncertain trading environment, the disappointing trading seen over the key summer months has largely been the result of circumstances beyond the Group's control, and while the outlook for the short-to-medium term must remain one of caution, there are nonetheless encouraging signs.

Trading in the Golf division remains robust and, going forwards, is expected to continue to hold up well.

Lightwater Valley is still trading below the exceptional summer seen following acquisition of the park by the Group in June 2021. However, visitor numbers in summer 2023 were above the prior year equivalent. The Group will begin to implement improvement processes to further increase revenues per visitor, particularly in relation to food, beverage and retail. This will be combined with structural changes that will enable the cost base to be optimised in advance of the next peak trading period in summer 2024. The project to install circa twenty pod-type units for rental is still in the early stages but is expected to start once the planning variations are approved.

Similarly, spend per head at the Pier was ahead of last year and prior to the issues experienced across the summer months, sales were tracking ahead of 2022. The Pier retains its iconic status, attracting millions of visitors every year, and the Group urges those involved in the rail strikes to agree a resolution so that the ongoing disruption does not continue into 2024.

In the Bars division, the combination of decline in consumer discretionary income, coupled with ongoing train strikes targeted at Friday and Saturday trading sessions, is likely to continue to bear down on sales and profits over the remainder of the current financial year and potentially into 2024.

Inflationary cost pressures are expected to continue to present challenges across the Group. Where price rises cannot be fully passed on, the Group will instead implement cost-saving initiatives in order to preserve future cash flows and earnings.

Poor weather over the summer disproportionately impacts the Group's trading performance. The diverse experiences offered by the Group's four operating divisions continue to prove attractive to our customers, and the Board believes that the strength of these different offerings will drive the business forwards over the longer term.

INTERIM CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

for the 6 month period ended 25 June 2023

 
                                                                        Unaudited        Unaudited           Audited 
                                                                   6 months ended   6 months ended   18 months ended 
                                                                          25 June          26 June       25 December 
                                                                             2023             2022              2022 
                                                           Notes          GBP'000          GBP'000           GBP'000 
 Revenue                                                                   16,204           17,332            58,905 
 Cost of sales                                                            (2,340)          (2,238)           (7,748) 
 
 Gross profit                                                              13,864           15,094            51,157 
 
 Operating expenses - excluding highlighted items                        (14,143)         (13,912)          (42,373) 
 Highlighted items                                           4            (2,958)               44               451 
--------------------------------------------------------  ------  ---------------  ---------------  ---------------- 
 
 Total operating expenses                                                (17,101)         (13,868)          (41,922) 
 
 Other operating income                                                        21               90               197 
 
 Operating (loss)/profit - excluding highlighted items                      (258)            1,272             8,981 
 Highlighted items                                           4            (2,958)               44               451 
--------------------------------------------------------  ------  ---------------  ---------------  ---------------- 
 
 Operating (loss)/profit                                                  (3,216)            1,316             9,432 
 
 Finance income                                                                68                -                24 
 Finance cost                                                               (782)            (615)           (1,817) 
 
 (Loss)/profit before tax - excluding highlighted items                     (972)              657             7,188 
 Highlighted items                                           4            (2,958)               44               451 
--------------------------------------------------------  ------  ---------------  ---------------  ---------------- 
 
 (Loss)/profit on ordinary activities before taxation                     (3,930)              701             7,639 
 
 Tax credit/(charge) on ordinary activities                  5                333            (281)           (1,266) 
 
 (Loss)/profit for the period                                             (3,597)              420             6,373 
 
 (Losses)/earnings per share - Basic                         6              (9.6)              1.1              17.1 
 Adjusted (losses)/earnings per share - Basic*               6              (1.7)              0.9              16.4 
 (Losses)/earnings per share - Diluted                       6              (9.6)              1.1              16.9 
 Adjusted (losses)/earnings per share - Diluted*             6              (1.7)              0.9              16.2 
 
   * Adjusted basic and diluted earnings per share are calculated based on the profit for the 
   period adjusted for highlighted items. 
 
   2023 basic weighted average number of shares in issue was 37.29m (2022: 37.29m). 
 
   2023 diluted weighted average number of shares in issue was 37.57m (2022: 37.29m). 
 
   No other comprehensive income was earned during the period (2022: GBPnil). 
 

INTERIM CONDENSED CONSOLIDATED BALANCE SHEET

 
                                            At        At            At 
                                       25 June   26 June   25 December 
                                          2023      2022          2022 
                                       GBP'000   GBP'000       GBP'000 
Non-current assets 
Intangible assets                        8,480    11,004         9,545 
Property, plant & equipment             27,464    28,608        28,139 
Right-of-use assets                     22,878    24,153        25,223 
Other receivables due in more than 
 one year                                    -       206             - 
                                        58,822    63,971        62,907 
                                      --------  --------  ------------ 
Current assets 
Inventories                              1,046       931           815 
Trade and other receivables              3,288     1,967         1,835 
Deferred tax assets                        333         -             - 
Cash and cash equivalents                6,191     7,654         4,208 
                                        10,858    10,552         6,858 
                                      --------  --------  ------------ 
 
TOTAL ASSETS                            69,680    74,523        69,765 
                                      ========  ========  ============ 
 
EQUITY 
Issued share capital                     9,322     9,322         9,322 
Share premium                           15,993    15,993        15,993 
Merger reserve                         (1,111)   (1,111)       (1,111) 
Other reserve                              452       452           452 
Retained (deficit)/earnings            (2,700)       275           897 
Equity attributable to equity 
 shareholders of the parent             21,956    24,931        25,553 
                                      --------  --------  ------------ 
 
TOTAL EQUITY                            21,956    24,931        25,553 
                                      --------  --------  ------------ 
 
LIABILITIES 
Current liabilities 
Trade and other payables                 8,189     8,928         3,833 
Other financial liabilities                485     1,371        11,327 
Lease liabilities                        2,154     1,842         1,808 
Income tax payable                         987     1,297           987 
Provisions                                 119         -           119 
                                        11,934    13,438        18,074 
                                      --------  --------  ------------ 
Non-current liabilities 
Other financial liabilities             10,400    11,271             - 
Lease liabilities                       24,617    24,359        25,365 
Deferred tax liability                     512       524           512 
Other payables                             261         -           261 
                                        35,790    36,154        26,138 
                                      --------  --------  ------------ 
 
TOTAL LIABILITIES                       47,724    49,592        44,212 
                                      --------  --------  ------------ 
 
TOTAL EQUITY AND LIABILITIES            69,680    74,523        69,765 
                                      ========  ========  ============ 
 

INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

 
                                                                            Unaudited     Unaudited        Audited 
                                                                          6 months to   6 months to   18 months to 
                                                                              25 June       26 June    25 December 
                                                                                 2023          2022           2022 
                                                                              GBP'000       GBP'000        GBP'000 
 Operating activities 
 (Loss)/profit before tax                                                     (3,930)           701          7,639 
 Net finance costs                                                                714           615          1,793 
 Amortisation of intangible assets                                                 31            35            126 
 Depreciation of property, plant and equipment                                    750           751          2,372 
 Depreciation of right-of-use assets                                              866           897          2,453 
 Gain on derecognition of lease liabilities due to disposal                         -             -          (688) 
 Gain on derecognition of lease liabilities due to waivers & 
  concessions                                                                       -         (145)          (402) 
 Charge on recognition of in-substance fixed rent                                   -           264            268 
 Impairment charge - goodwill                                                   1,070           643            985 
 Impairment charge/(credit) - property, plant and equipment                       303         (424)          (424) 
 Impairment charge/(credit) - right-of-use assets                               1,585         (489)          (489) 
 (Decrease)/increase in provisions                                                  -         (258)            119 
 Increase in inventories                                                        (231)         (219)           (84) 
 Increase/(decrease) in trade and other receivables                           (1,453)         (714)          2,381 
 Increase/(decrease) in trade and other payables                                4,229         3,361        (3,539) 
 Interest paid on borrowings                                                    (411)         (247)          (712) 
 Interest paid on lease liabilities                                             (371)         (368)        (1,105) 
 Interest received                                                                 68             -             24 
 Income tax paid                                                                    -          (34)           (32) 
 
 Net cash inflow from operating activities                                      3,220         4,369         10,685 
                                                                         ------------  ------------  ------------- 
 
 Investing activities 
 Purchase of property, plant and equipment and intangible assets                (415)         (582)        (1,296) 
 Proceeds from disposal of property, plant and equipment                           95             -             18 
 Payment of deferred consideration to former Lightwater Valley 
  Attractions Limited shareholders                                                  -             -        (1,000) 
 
 Net cash outflow used in investing activities                                  (320)         (582)        (2,278) 
                                                                         ------------  ------------  ------------- 
 
 Financing activities 
 Repayment of borrowings                                                        (442)       (2,805)        (9,063) 
 Principal paid on lease liabilities                                            (475)         (584)        (2,216) 
 
 Net cash outflow used in financing activities                                  (917)       (3,389)       (11,279) 
                                                                         ------------  ------------  ------------- 
 
 Net increase/(decrease) in cash and cash equivalents                           1,983           398        (2,872) 
 Cash and cash equivalents at beginning of period                               4,208         7,256          7,080 
 
 Cash and cash equivalents at end of period                                     6,191         7,654          4,208 
                                                                         ============  ============  ============= 
 

INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

 
                      Issued      Share       Other     Merger     Retained            Total 
                       share    premium    reserves    reserve    earnings/    shareholders' 
 Unaudited           capital                                      (deficit)           equity 
                     GBP'000    GBP'000     GBP'000    GBP'000      GBP'000          GBP'000 
----------------   ---------  ---------  ----------  ---------  -----------  --------------- 
 At 25 December 
  2022                 9,322     15,993         452    (1,111)          897           25,553 
-----------------  ---------  ---------  ----------  ---------  -----------  --------------- 
 Loss for the 
  period                   -          -           -          -      (3,597)          (3,597) 
 At 25 June 
  2023                 9,322     15,993         452    (1,111)      (2,700)           21,956 
-----------------  ---------  ---------  ----------  ---------  -----------  --------------- 
 
 
                      Issued      Share       Other     Merger      Retained            Total 
                       share    premium    reserves    reserve    (deficit)/    shareholders' 
 Unaudited           capital                                        earnings           equity 
                     GBP'000    GBP'000     GBP'000    GBP'000       GBP'000          GBP'000 
----------------   ---------  ---------  ----------  ---------  ------------  --------------- 
 At 26 December 
  2021                 9,322     15,993         452    (1,111)         (145)           24,511 
-----------------  ---------  ---------  ----------  ---------  ------------  --------------- 
 Profit for 
  the period               -          -           -          -           420              420 
 At 26 June 
  2022                 9,322     15,993         452    (1,111)           275           24,931 
-----------------  ---------  ---------  ----------  ---------  ------------  --------------- 
 
 
                      Issued      Share       Other     Merger      Retained            Total 
                       share    premium    reserves    reserve    (deficit)/    shareholders' 
 Audited             capital                                        earnings           equity 
                     GBP'000    GBP'000     GBP'000    GBP'000       GBP'000          GBP'000 
----------------   ---------  ---------  ----------  ---------  ------------  --------------- 
 At 27 June 
  2021                 9,322     15,993         452    (1,111)       (5,476)           19,180 
-----------------  ---------  ---------  ----------  ---------  ------------  --------------- 
 Profit for 
  the period               -          -           -          -         6,373            6,373 
 At 25 December 
  2022                 9,322     15,993         452    (1,111)           897           25,553 
-----------------  ---------  ---------  ----------  ---------  ------------  --------------- 
 

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

   1.            GENERAL INFORMATION 

The Brighton Pier Group PLC (registered number 08687172) is a public limited company incorporated and domiciled in England and Wales. The Company's ordinary shares are traded on AIM. Its registered address is 36 Drury Lane, London, WC2B 5RR. The Company is the immediate and ultimate parent of the "Group".

The Brighton Pier Group PLC owns and operates Brighton Palace Pier, one of the leading tourist attractions in the UK. The Group is also a leading operator of eight premium bars nationwide, eight indoor mini- golf sites and Lightwater Valley Family Adventure Park in North Yorkshire.

The principal accounting policies adopted by the Group are set out in Note 2.

   2.            ACCOUNTING POLICIES 

The financial information for the 6 month periods ended 25 June 2023 and 26 June 2022 does not constitute statutory accounts for the purposes of section 435 of the Companies Act 2006. The financial information for the 6 month period ended 25 June 2023 has not been audited. The Group's latest audited statutory financial statements were for the 18 month period ended 25 December 2022 and these have been filed with the Registrar of Companies.

Information that has been extracted from the 25 December 2022 accounts is from the audited accounts included in the annual report, published in May 2023, on which the auditor gave an unmodified opinion and did not include a statement under section 498 (2) or (3) of the Companies Act 2006. A copy of these accounts can be found on the Group's website, www.brightonpiergroup.com .

The interim condensed consolidated financial statements for the 6 months ended 25 June 2023 have been prepared in accordance with the AIM Rules issued by the London Stock Exchange. They do not include all the information and disclosures required in the annual financial statements and should be read in conjunction with the Group's annual financial statements as at 25 December 2022, which were prepared using IFRS, in accordance with The International Accounting Standards and European Public Limited-Liability Company (Amendment etc.) (EU Exit) Regulations 2019.

The accounting policies used in preparation of the financial information for the 6 months ended 25 June 2023 are the same accounting policies applied to the Group's financial statements for the 18 months ended 25 December 2022, with the exception of income tax which has been calculated using the forecast effective tax rate for the 12 months ending 31 December 2023 applied to the loss before tax for the 6 months ending 25 June 2023. These policies were disclosed in the 2022 Annual Report.

NOTES to the INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

   3.            SEGMENTAL INFORMATION 

Management has determined the operating segments based on the reports reviewed by the Chief Operating Decision Maker ("CODM") comprising the Board of Directors. During the 6 month period ended 25 June 2023, the Group changed its measurement method of reported segment profit or loss, with depreciation charges on property, plant and equipment and right-of-use assets, amortisation charges on intangible assets and net finance costs arising on lease liabilities now allocated between the relevant operating segments, having previously been grouped within head office costs.

The segmental information is split on the basis of those same profit centres - however, management report only the contents of the consolidated statement of comprehensive income and therefore no balance sheet information is provided on a segmental basis in the following tables.

 
 6 month period ended             Brighton                                                   Head                 June 
  25 June 2023                      Palace                       Lightwater       Total    office    2023 consolidated 
                                      Pier      Golf      Bars       Valley    segments     costs                total 
                                   GBP'000   GBP'000   GBP'000      GBP'000     GBP'000   GBP'000              GBP'000 
-------------------------------  ---------  --------  --------  -----------  ----------  --------  ------------------- 
 
 Revenue                             7,507     3,147     4,105        1,445      16,204         -               16,204 
 Cost of sales                     (1,353)      (57)     (762)        (168)     (2,340)         -              (2,340) 
-------------------------------  ---------  --------  --------  -----------  ----------  --------  ------------------- 
 Gross profit                        6,154     3,090     3,343        1,277      13,864         -               13,864 
 Gross profit %                        82%       98%       81%          88%         86%         -                  86% 
 
 Operating expenses 
  (excluding depreciation 
  and amortisation)                (5,639)   (1,678)   (2,966)      (1,574)    (11,857)     (639)             (12,496) 
 Other income                            -         -         -            -           -        21                   21 
-------------------------------  ---------  --------  --------  -----------  ----------  --------  ------------------- 
 Divisional earnings/(loss)            515     1,412       377        (297)       2,007     (618)                1,389 
 Highlighted items                       -         -   (1,888)      (1,070)     (2,958)         -              (2,958) 
 Depreciation and amortisation 
  (excluding right-of-use 
  assets)                            (222)     (219)     (181)        (159)       (781)         -                (781) 
 Depreciation of right 
  of use assets                        (3)     (430)     (363)         (51)       (847)      (19)                (866) 
-------------------------------  ---------  --------  --------  -----------  ----------  --------  ------------------- 
 Operating profit/(loss)               290       763   (2,055)      (1,577)     (2,579)     (637)              (3,216) 
 Net finance cost (excluding 
  interest on lease 
  liabilities)                           -         -         -            -           -     (343)                (343) 
 Net finance cost arising 
  on lease liabilities                   -     (138)     (143)         (88)       (369)       (2)                (371) 
 Profit/(loss) before 
  tax                                  290       625   (2,198)      (1,665)     (2,948)     (982)              (3,930) 
 Income tax                              -         -         -            -           -       333                  333 
-------------------------------  ---------  --------  --------  -----------  ----------  --------  ------------------- 
 Profit/(loss) after 
  tax                                  290       625   (2,198)      (1,665)     (2,948)     (649)              (3,597) 
 
 EBITDA                                515     1,412       377        (297)       2,007     (618)                1,389 
-------------------------------  ---------  --------  --------  -----------  ----------  --------  ------------------- 
 

NOTES to the INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

   3.         SEGMENTAL INFORMATION (continued) 
 
 6 month period ended             Brighton                                                   Head                 June 
  26 June 2022                      Palace                       Lightwater       Total    office    2022 consolidated 
                                      Pier      Golf      Bars       Valley    segments     costs                total 
                                   GBP'000   GBP'000   GBP'000      GBP'000     GBP'000   GBP'000              GBP'000 
-------------------------------  ---------  --------  --------  -----------  ----------  --------  ------------------- 
 
 Revenue                             7,341     3,407     5,113        1,471      17,332         -               17,332 
 Cost of sales                     (1,116)      (50)     (943)        (129)     (2,238)         -              (2,238) 
-------------------------------  ---------  --------  --------  -----------  ----------  --------  ------------------- 
 Gross profit                        6,225     3,357     4,170        1,342      15,094         -               15,094 
 Gross profit %                        85%       99%       82%          91%         87%         -                  87% 
 
 Operating expenses 
  (excluding depreciation 
  and amortisation)                (5,578)   (1,482)   (3,088)      (1,499)    (11,647)     (582)             (12,229) 
 Other income                            6        35        49            -          90         -                   90 
-------------------------------  ---------  --------  --------  -----------  ----------  --------  ------------------- 
 Divisional earnings/(loss)            653     1,910     1,131        (157)       3,537     (582)                2,955 
 Highlighted items                       -     (158)       202            -          44         -                   44 
 Depreciation and amortisation 
  (excluding right-of-use 
  assets)                            (246)     (219)     (152)        (169)       (786)         -                (786) 
 Depreciation of right 
  of use assets                        (5)     (430)     (400)         (46)       (881)      (16)                (897) 
-------------------------------  ---------  --------  --------  -----------  ----------  --------  ------------------- 
 Operating profit/(loss)               402     1,103       781        (372)       1,914     (598)                1,316 
 Net finance cost (excluding 
  interest on lease 
  liabilities)                           -         -         -            -           -     (247)                (247) 
 Net finance cost arising 
  on lease liabilities                 (1)     (138)     (135)         (92)       (366)       (2)                (368) 
 Profit/(loss) before 
  tax                                  401       965       646        (464)       1,548     (847)                  701 
 Income tax                              -         -         -            -           -     (281)                (281) 
-------------------------------  ---------  --------  --------  -----------  ----------  --------  ------------------- 
 Profit/(loss) after 
  tax                                  401       965       646        (464)       1,548   (1,128)                  420 
 
 EBITDA                                653     1,910     1,131        (157)       3,537     (582)                2,955 
-------------------------------  ---------  --------  --------  -----------  ----------  --------  ------------------- 
 
   4.            HIGHLIGHTED ITEMS 
 
                                                                                    6 months to    6 months to 
                                                                                   25 June 2023   26 June 2022 
                                                                                        GBP'000        GBP'000 
--------------------------------------------------------------------------------  -------------  ------------- 
 Impairment charge - goodwill                                                             1,070            643 
 Impairment charge/(credit) - property, plant and equipment                                 303          (424) 
 Impairment charge/(credit) - right-of-use assets                                         1,585          (489) 
 Turnover rent charge                                                                         -            107 
 Charge on recognition of in-substance fixed rent                                             -            264 
 Gain on derecognition of lease liabilities using IFRS 9 derecognition criteria               -          (145) 
 Total                                                                                    2,958           (44) 
--------------------------------------------------------------------------------  -------------  ------------- 
 

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

   4.          HIGHLIGHTED ITEMS (continued) 

The above items have been highlighted in order to provide users of the financial statements visibility of non-comparable costs included in the Consolidated Statement of Comprehensive Income for this period.

6 month period ended 25 June 2023

The Group performed an impairment test in June 2023, resulting in total impairments applied of GBP2,958,000, split between goodwill (GBP1,070,000), property, plant and equipment (GBP303,000) and right-of-use assets (GBP1,585,000). See Note 8 for further details.

6 month period ended 26 June 2022

The Group performed an impairment test in June 2022, resulting in an impairment of GBP643,000 in the Rushden site, and a reversal of impairments applied to property, plant and equipment of GBP424,000 (2021: nil) and right-of-use assets of GBP489,000 (2021: nil). These reversals were in respect of impairments that were applied as part of management's 2020 impairment review.

At June 2022, management reviewed the lease arrangements in place across the Group in conjunction with the forecast performance at each leased site. With most sites once again trading at or above pre-pandemic levels, management assessed that the payment of turnover rent at some sites in the Bars division was sufficiently certain as to make them in-substance fixed payments. In accordance with IFRS 16, rent payments totalling GBP264,000 were added back to the lease liability on the balance sheet, with the corresponding entry being recognised within highlighted items in the Statement of Comprehensive Income for the 6 month period ended 26 June 2022 in order to ensure consistency with the treatment of previously derecognised liabilities in prior periods.Prior to this assessment having been made, turnover rent recognised within highlighted items totalled GBP107,000.

As a result of the COVID-19 pandemic, the Group agreed temporary lease variations that amounted, in substance, to forgiveness of rent payable without materially changing the present value of total cash outflows over the life of the lease. Consequently, the Group de-recognised the appropriate portion of its total liability in accordance with the provisions of IFRS 9: Financial Instruments. The value of these extended waivers is recognised in the Statement of Comprehensive Income. The Group recognised total credits of GBP144,000 within highlighted items in the Statement of Comprehensive Income during the period ended 26 June 2022.

   5.            TAXATION 

The tax credit of GBP0.3 million (2022: charge of GBP0.3 million) has been calculated by reference to the expected effective current and deferred tax rates for the 12 month period to the 31 December 2023 applied against the loss before tax for the period ended 25 June 2023. The full year effective tax charge on the underlying trading profit is estimated to be GBPnil (18 months ended 25 December 2022: GBP1.3 million).

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

   6.            (LOSSES)/EARNINGS PER SHARE 

The weighted average number of shares in the period was:

 
                                                                  6 months to           6 months to 
                                                                 25 June 2023          26 June 2022 
                                                          Thousands of shares   Thousands of shares 
 Ordinary shares                                                       37,286                37,286 
-------------------------------------------------------  --------------------  -------------------- 
 Weighted average number of shares - basic                             37,286                37,286 
 Dilutive effect on ordinary shares from share options                    286                     - 
-------------------------------------------------------  --------------------  -------------------- 
 Weighted average number of shares - diluted                           37,572                37,286 
-------------------------------------------------------  --------------------  -------------------- 
 

Basic and diluted (losses)/earnings per share are calculated by dividing the (loss)/profit for the period into the weighted average number of shares for the year. In order to provide a measure of underlying performance, management have chosen to present an adjusted (loss)/profit for the period, which excludes items that may distort comparability. Such items arise from events or transactions that fall within the ordinary activities of the Group but which management believes should be separately identified to help explain underlying performance.

 
 
                                                                             6 months to     6 months to 
                                                                            25 June 2023    26 June 2022 
 (Losses)/earnings per share from (loss)/profit for the period 
 Basic (pence)                                                                     (9.6)             1.1 
 Diluted (pence)                                                                   (9.6)             1.1 
------------------------------------------------------------------------  --------------  -------------- 
 Adjusted (losses)/earnings per share from (loss)/profit for the period 
 Basic (pence)                                                                     (1.7)             0.9 
 Diluted (pence)                                                                   (1.7)             0.9 
------------------------------------------------------------------------  --------------  -------------- 
 
   7.            RECONCILIATION TO EBITDA 

Group (loss)/profit before tax for the period can be reconciled to Group EBITDA as follows:

 
 
                                                  6 months 
                                                        to      6 months 
                                                   25 June    to 26 June 
 EBITDA Reconciliation                                2023          2022 
-----------------------------------------------  ---------  ------------ 
 (Loss)/profit before tax for the period           (3,930)           701 
 Add back: 
 Depreciation of property, plant and equipment         750           751 
 Depreciation of right-of-use-assets                   866           897 
 Amortisation of intangible assets                      31            35 
 Net finance costs                                     714           615 
 Highlighted items                                   2,958          (44) 
-----------------------------------------------             ------------ 
 Group EBITDA                                        1,389         2,955 
 

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

   8.            IMPAIRMENT REVIEW 

The Group performed an impairment test in June 2023, with continuing inflationary pressures and decline in consumer confidence being considered by management to be indicators of impairment, prompting a full review of the recoverable amount of all CGUs within the Group. The Group considers the relationship between the trading performance of each cash generating unit ('CGU') and their book value when reviewing for indicators of impairment. Each of the Group's sites represents a separate CGU, which were assessed individually for impairment. The carrying value of each CGU consists of the net book value of goodwill (where applicable), property, plant and equipment and right-of-use assets. Goodwill is allocated to the site on which it arose.

Management believes the diversity of the Group's offerings and strong balance sheet will offer some resilience in the short and medium-term as these factors are tackled. Longer-term, the Board remains optimistic about the outlook for the Group.

Based on management's review of the expected performance of the core estate, an impairment to goodwill of GBP1,070,000 was identified in Lightwater Valley (2022: GBPnil). Further impairments were applied to property, plant and equipment of GBP303,000 (2022: GBPnil) and right-of-use assets of GBP1,585,000 (2022: GBPnil) in the Bars division. The impairments that were recognised following the June 2023 Group impairment review, along with their impact on the carrying value of the Group's CGUs, are detailed in the table below:

 
                                                                     Carrying 
                                       Carrying                 value carried 
                                    value prior                 forward after 
                                   to June 2023                     June 2023 
                                     impairment                    impairment 
                                         review   Impairment           review 
                                        GBP'000      GBP'000          GBP'000 
 Goodwill                                 9,272      (1,070)            8,202 
 Property, plant and equipment           27,767        (303)           27,464 
 Right-of-use assets                     24,463      (1,585)           22,878 
 Total carrying value of CGUs            61,502      (2,958)           58,544 
-------------------------------  --------------  -----------  --------------- 
 

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