Brighton Pier Group reports record revenue but warns of significant trading challenges ahead: The Brighton Pier Group, which owns and trades Brighton Palace Pier, as well as indoor mini golf sites and premium bars nationwide, has reported turnover increased to a record £40.1m for the year ending 26 June 2022 (2021: £13.5m), which was also 25% above the pre-covid levels of 2019. It made a pre-tax profit of £7.3m compared with a profit of £4.1m the previous year (2019: profit of £2.7m). Group Ebitda was £10.8m (2021: £5.1m). Brighton Palace Pier like-for-like sales were up 12% on 2019. Golf division like-for-like sales were up 23% on 2019 and bars division like-for-like sales (for only 49 weeks as the division was only able to reopen from the end of July 2021) were up 21% on 2019. Since the end of the previous financial year the group has reduced its net debt by 62% to £5m. The company stated: “Like-for-like sale sales for the nine-week period to the 28 August 2022 have seen softer trading across some divisions with cost pressures building across the group. Total like-for-like sales for the nine weeks were £8.3m, 1% up on pre-pandemic levels (2019: £8.2m). This comparative excludes Lightwater Valley which was acquired in June 2021. The pier enjoyed another strong trading performance in summer 2022, with unusually warm weather in England, was up 7% on pre-covid levels at £5.6m (2019: £5.2m). Conversely, trading in the bars division has been impacted by the hot weather, with like-for-like sales down 11% on pre-covid levels at £1.7m (2019: £1.9m). Price increases have seen gross margin improve which has helped to offset cost increases. The division is now gearing up for the return of students, Halloween, and Christmas. The hot weather, in combination with a general decline in footfall in larger shopping centres saw like-for-like sales down 8% in the golf division at £1.0m compared with pre-pandemic levels (2019: £1.1m). Lightwater Valley has seen significantly lower admissions compared to the exceptional 2021 year (impacting revenues, despite improved spend-per-head from retail investment in the new food and beverage operations). Together with increased costs, this has reduced profitability compared with management expectations based on the previous season, when pent-up demand from covid lockdowns saw an unprecedented surge in visitors. The group has invested £0.4m in the redevelopment of the park, with new rides, improved catering offerings, and other outdoor attractions. Going forward, management recognise the group is entering a period where economic pressures, both consumer discretionary spend allied with increased costs will present significant trading challenges. Importantly, the group has been able to mitigate some inflationary energy and wage cost pressures through targeted price increases, operational improvements and by fixing energy costs where possible early in 2022. As inflationary pressures head into double digits these will become harder to mitigate over the short to medium term, which has increased uncertainty in budgeting and forecasting.” Chief executive Anne Ackord said: “The group’s strong recovery following the covid pandemic has resulted in sales of more than £40m for the first time in the group’s history. This reflects the hard work of all the group’s employees, for which we are very grateful. This exceptional period has benefited both from pent-up customer demand and from hospitality-targeted government recovery packages. The ongoing cash-generative nature of the group’s diverse businesses and strong balance sheet add resilience to The Brighton Pier Group. Nevertheless, as we enter into unchartered waters, economic headwinds make it difficult to predict both costs and consumer demand, so our outlook for the future must be one of caution.”