Brighton Pier Group PLC (The) Trading Update (8231Y)

TIDMPIER

RNS Number : 8231Y

Brighton Pier Group PLC (The)

14 September 2020

14 September 2020

The Brighton Pier Group PLC

("Brighton Pier Group" or the "Group")

Post Summer Update

The Directors of Brighton Pier Group are pleased to provide an update on trading, resulting from the phased re-opening of our businesses following the lifting of Government restrictions.

We can confirm that Brighton Palace Pier, six of our eight golf sites and two of our twelve bars reopened on 4 July and the remaining two golf sites and soft play on the Pier reopened on 24 August. Extensive measures have been put into place at all our locations to ensure that social distancing complies with the Government's COVID-19 guidelines.

Group trading for the period from 4 July to the 6 September has been better than the Board expected, with total revenue from all the Group's open operations at 77% of the same period last year. On a divisional basis, during this same period, revenue for the Pier was 78% compared to last year, for the open Golf sites was 86% compared to last year, and for the open Bar sites was 59% compared to last year.

As has been widely reported, most of the late-night venues such as those that dominate the Group's Bars division have not been permitted to reopen, with two exceptions in its food led operations: 'Lowlander' (in central London) and the outside terrace at 'Coalition' (in Brighton).

Re-opening of the late-night bars had been scheduled to commence in October, but as time has progressed the Government has continued to avoid making any commitment to an opening date. This lack of certainty coupled with the Government's intention to end the Coronavirus Job Retention Scheme by the end of October has resulted in the Bars division having to terminate the contracts for those members of staff for whom we cannot currently provide any prospect of work for the foreseeable future.

The very nature of the late-night, live DJ-led dancing experience presents significant challenges given current government regulations. The potential need to repurpose dancefloors and to seat customers in a socially distanced fashion, with an absence of live music and dancing, will fundamentally change the business model with significant reduction in capacity. Given the uncertainty surrounding reopening dates, the Group has been working on plans to trial this new model in some of its larger venues. So far, we have traded six nights in Putney 'Le Fez' and six nights in Chelsea's 'Embargo'. We have been encouraged by the support from our customers and will continue to trial these and potentially more nights until the end of September.

We continue to work with our landlords in both the Golf division and late night Bars division to secure rent concessions and on-going turnover rent so as to mitigate the cost from the closed period, the sales impact of COVID-19 restrictions during the re-opening phase and the continuing extended closures in the Bars division. The Directors will report back to shareholders once these negotiations are completed.

Notice of results:

In order to provide time for the logistical challenges of a remote audit and the enhanced audit procedures arising out of the COVID-19 pandemic, the preliminary announcement of the Company's annual results for the 52 weeks to the end of June 2020 is to be released just over a month later than in previous years and is scheduled for Monday 2 November 2020.

The AGM is scheduled as usual for the beginning of December on Wednesday, 2 December 2020 at 10 30 a.m.

Anne Ackord, CEO, comments:

"I am pleased with trading on the Pier, in our golf sites and the two food led bars that opened on the 4 July. At 77% of last year, it is better than expectations and while visitor numbers are down on last year spend per head has grown by 20%.

"There remains however an urgent need for the Government to agree a plan for the re-opening of our late night estate so that we can manage their return to business as quickly and effectively as possible."

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

 
  Enquiries: 
 The Brighton Pier Group                              Tel: [phone] 
                                                       6300 
 Anne Ackord, Chief Executive Officer                 Tel: [phone] 
 John Smith, Chief Financial Officer                  Tel: [phone] 
                                                       6300 
 
 Panmure Gordon (UK) Limited (Nominated Adviser and   Tel: [phone] 
  Joint Broker)                                        2500 
 Corporate Finance 
 Atholl Tweedie 
 Corporate Broking 
 Charles Leigh-Pemberton 
 

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September 14, 2020 02:00 ET (06:00 GMT)