London leisure market remains challenging, says Merlin Entertainments

Although market conditions in London remain challenging, theme park operator Merlin Entertainment said trading in 2016 has been "broadly" in line with expectations.

The operator of theme parks and leisure attractions including the Legoland, Madame Tussauds and London Dungeon chains said the trading pattern was "reflecting the continuation of the key trends underlying the 2015 result".

Last year, Merlin delivered a fairly robust financial performance despite challenging trading at a number of attractions, notably Alton Towers, where the Smiler rollercoaster crash at Alton Towers last June reduced visitor numbers severely.

The FTSE 100 group added that even favourable movements in foreign exchange rates had not fully alleviated London's challenges.

"New rides and features opened so far this season, as well as our three new Midway attractions, have been well received and we are encouraged by early guest feedback," Merlin said.

Management's plans to development new accommodation was said to be progressing well, with the expansion of the Legoland Deutschland Holiday Village already available for bookings, and further offerings at Gardaland, Chessington World of Adventures and Warwick Castle on schedule to open over the coming weeks.

Merlin was told last month that it would face a "very large" fine after admitted breaking health and safety laws over the Smiler crash but the company's shares have only retreated a small way from their near-record highs.