Rising costs force owner of Blackpool’s piers into the red
The company the owns Blackpool’s three iconic piers fell into the red during its latest financial year, it has been revealed.
The Blackpool Pier Company, which owns the South, Central and North piers on city’s Promenade, has posted a pre-tax loss of £335,652 after reporting a pre-tax profit of £354,231 in 2022.
According to newly-filed accounts with Companies House, the group’s turnover increased from £14.9m to £15.3m over the same period.
A statement signed off by the board said: “The group continues to invest heavily in fixed assets in respect of the pier structures especially in light of the environmental challenges being faced and ensuring that the attractions on offer remain at a high standard across the group.
“The directors are conscious of the historic importance of the three piers and as such ensure that there are ongoing improvement and maintenance plans in place to preserve them for future generations to enjoy.
“The overhead cost increases alongside continued increases in national minimum wage has put pressure on the profitability of the business, but the directors are confident that continued measures implemented to offset the increases in costs will allow the business to maintain its profitability.”
Blackpool’s piers compared to Brighton Pier
The results come after it was revealed in May the owner of the 125-year-old iconic Brighton Pier reported a pre-tax loss of £8.8m during its latest financial year.
At the time Brighton Pier Group, which also operates a string of bars and mini golf courses across the UK, said it had been hit by “challenging” trading conditions, as inflation ate into customer demand.
Inflationary pressures led to “significant cost increases” particularly in food, drinks, wages and insurance, the company added.
Customer demand at Brighton Pier was further affected by “poor weather, train strikes and a fire at the Royal Albion Hotel”, as well as softer demand overall due to the cost-of-living pressures.
Summer footfall at the Pier was down by 18 per cent year on year, as the company changed its full-year reporting date for results from June to December. When it previously reported, it covered the 18 months to 25 December 2022.
Compared to the previous set of results covering 18 months, its revenue was down from £58.9m to £34.8m, while its loss after tax increased to £7.5m, from a £6.4m profit.