By Anthony O. Goriainoff
Brighton Pier Group said Tuesday that first-half earnings after tax are expected to be below market expectations as its performance has been hurt by lower sales and inflationary cost measures.
The U.K. company, which owns Brighton Palace Pier as well as a number of bars and mini golf venues, said sales remain behind 2022 as the current macroeconomic environment has led to a decline in disposable incomes and consumer confidence.
The company said total sales for the period ended June 25 are expected to be around 16.2 million pounds ($20.8 million). The company didn’t provide a comparative.
Brighton Pier said its performance in July has been hurt by unseasonably poor weather, train strikes as well as the effect of a fire at a major hotel located opposite the entrance to the pier.
The board said management continues to mitigate the economic pressures and that all four of its divisions will remain profitable for the full year despite the challenges.
“We will still attempt to capitalize on the forthcoming school holiday period of August, traditionally the busiest and most profitable period in our year. With current economic trends set to continue in the short to medium term the outlook must continue to be one of caution,” it said.
Write to Anthony O. Goriainoff at anthony.orunagoriainoff@dowjones.com
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