Brighton Pier Group plummets as rail closures decimate profits

10th Jan 2019 08:18

(Sharecast News) - The Brighton Pier Group's shares dived on Thursday after the company warned that full-year profits will not meet expectations after disappointing performances from the pier and bar divisions.The company's board anticipates that profit before tax will be in the region of 18% lower than current consensus expectations and stated that the pier division was hampered by recurrent rail closures on routes into Brighton and disappointing weather over the August bank holiday weekend.Anne Ackord, chief executive, said: "Whilst I am disappointed at the rail network disruptions currently affecting the Pier, once they are complete, this will be of great benefit to future visitors travelling to the city and consequently to our Brighton businesses."However, engineering works and rail closures are expected to continue until at least May, the start of the pier's busy season.Meanwhile, the bars division struggled as the Fez bar was closed for refitting from July to December, longer than had been anticipated, while trading conditions continue to be "challenging"."Despite these challenges the company's pier, bars and golf businesses remain well invested, strongly cash generative and well positioned for future growth," said Ackford.The AIM-listed company's golf division continues to trade in line with expectations and is to expand to seven locations with the opening of a new site at Rushden Lakes in April.Brighton Pier's shares were down 44.44% at 35.00p at 0851 GMT.