Brighton Pier Group, the U.K.-based company that owns Brighton Palace Pier and several bars and mini golf venues, has reported a swing to a pretax loss for the first half of the year. The company attributes the loss to a decline in sales in its bars division, along with inflationary pressures and rising staff costs impacting operating margins.
The challenging macroeconomic environment has contributed to a contraction in consumer disposable incomes, leading to a decline in sales across the estate. The company's pretax loss for the period reached £3.9 million ($4.8 million), compared to the previous year's profit of £701,000. Revenue also took a hit, falling from £17.3 million to £16.2 million.
Brighton Pier Group's performance in the 12-week period ending September 17 was further impacted by weekend train strikes, which caused an 18% decrease in visitor numbers to the pier compared to the same period in 2022. Unseasonably wet weather and a hotel fire added to the company's difficulties, disrupting sales for the final two weeks of July.
While the board is encouraged by improved trading in the first three weeks of September, ongoing macroeconomic challenges continue to affect the business.
