Results round-up
The owners of Brighton’s most popular attraction the Brighton Pier Group, reported that revenue remained flat during a “transformational year” that saw the acquisition of its namesake iconic landmark.
For the year ended 26 June, revenue remained relatively flat at £22.6m, a slight rise of 1.3% from last year.
Pre-tax profit rose 80% to £900,000 and earnings before interest, tax, depreciation and amortisation (EBITDA) rose about 28% to £2.3m.
Brighton Pier Group returned to profitability with an increase of basic earnings per share to 4.2p from -0.3p.
The AIM-listed company has two divisions, the Brighton Marine Palace and Pier Company, which owns and operates the Brighton pier, and Eclectic Bars, an operator of bars across the country.
In April, the company bought The Brighton Marine Palace and Pier Company, by way of a reverse takeover, for £18m, which was part-funded by a share placing of £8.5m and £13m in debt financing from Barclays bank.
The company said during its first full summer of ownership the pier business has traded in line with expectations.
The Eclectic Bars business remained cash generative, contributing £2.3m to full-year EBITDA thanks to a rise in midweek student numbers, an increase in the number of student nights and improved midweek sales.
The “significant savings” were made on head office costs, as well as rebasing of costs across the company, with a 2.25% margin improvement due to the re-negotiation of Electric Bars’ principal supply contracts, which brought additional profit, together with a logistics benefit through having a single drinks supplier.
Brighton made other progress during the year as reflected in the Derby Lola Lo bar´s return to profitability, the launch of Smash, a new 'ping pong' bar in Reading, and the sale of the Sheffield and half of the Liverpool sites.
Financial services company Manx Financial Group announced its interim results for the six months to 30 June on Friday, with profit before income tax on continuing operations growing 2% to £0.81m, from £0.79m.
The AIM-traded firm’s profit before income tax was down 29%, however, to £0.71m from £1.01m in the first half of 2015.
Net interest income was up 18% to £7.36m, which was also the company’s net interest income on continuing operations.
Total equity was up 18% to £12.81m, and total assets were also up 18% to £149.09m.
Manx Financial Group’s loans were up 21% year-on-year to £111.75m, with customer accounts up 16% to £122.2m.
“Despite this encouraging progress, the principal area of business in which we have suffered, however, is the increased levels of commission paid to our UK intermediaries, including hire purchase early settlements - a rise of 48% to £3.9m,” said executive chairman Jim Mellon.
“This expense reflects our changing business mix as the UK becomes an ever more significant market, now totalling over three quarters of our total loan book.”
Mellon said the hire purchase early settlements contained within that commission expense were as a result of largely unanticipated market-driven decreases in realised asset values during the first half of the year.
Nonetheless, Mellon said the group delivered a meaningful profit for the first half of 2016 and he has “every confidence” that the measures the board is undertaking will maintain its current bottom line to the year end and beyond.
“New business opportunities remain strong but we must continue our hard work to maximise these.
“The acquisition of full authorisation for UK Consumer Credit activities will allow us increased direct access to this important market.”
Mellon said the company was continuing to manage its operational costs in a careful manner.