Poor Palace Pier! It hit the news headlines yesterday for all the wrong reasons, as they say, financial mostly. Brighton Pier Group PLC, which owns the pier, announced that it would delist from the London’s AIM market and return to life as a private company. If a shareholder meeting on 22 April agrees with this plan, the delisting will take place on 2 May. The group cited ‘persistent challenging trading conditions, impacted by, inter alia, Covid-19, repeat bad weather during peak summer trading periods, recent significant Budget increases in National Insurance from 6 April 2025, pressures on consumer discretionary spending and a change in consumer behaviours’. It’s worth noting that after introducing an entrance fee of £1 for non-residents last year, the fee has recently doubled to £2.
The Brighton Pier Group PLC owns and trades Brighton Palace Pier, as well as five premium bars nationwide, eight indoor mini-golf sites and the Lightwater Valley Family Adventure Park in North Yorkshire. The group operates as four separate divisions - one of which runs Brighton Palace Pier - under the leadership of Anne Ackord, Chief Executive Officer. Chairman Luke Johnson, former Pizza Express and Patisserie Valerie boss, who owns 27% of the company’s shares (according to its website), was quoted as saying the company had faced ‘persistent challenging trading conditions’ since the coronavirus pandemic, forcing it to cut costs and sell off underperforming assets. Having risen to over £100 in April 1922, the share price has generally fallen steadily since then, slumping yesterday, and now hovering in the region of £10.
‘Brighton Palace Pier,’ the group website explains, ‘welcomes over four million visitors per year and offers a wide range of attractions including two arcades (with over 300 machines) and nineteen funfair rides, together with a variety of on-site hospitality and catering facilities. The attractions, product offering and layout of the Pier are focused on creating a family-friendly atmosphere that aims to draw a wide demographic of visitors. Revenue is generated from the pay-as-you-go purchase of products from the fairground rides, arcades, hospitality facilities and retail catering kiosks.’
In explaining its decision, the company also cited ‘the considerable cost and management time and the legal and regulatory burden associated with maintaining the Company’s admission to trading on AIM’ which, in the Board’s opinion, are ‘disproportionate to the benefits’. It believes that the lower costs associated with unquoted company status, ‘will materially reduce the Company’s recurring administrative and adviser costs by between £250,000 and £300,000 per annum’ significantly reducing its in overhead cost burden.Last month, the BBC quoted Ackord as saying that Brighton and Hove faces a ‘very difficult future’ if more is not done to attract visitors. There is a general ‘lack of recognition’ in the city, she said, over the importance of tourism and that ‘incisive action’ is required. She added that a ‘coordinated approach, attention to detail and the belief in working towards the same goal’ were missing. Finally, she warned: ‘The pier is 126-years-old this year and I’d like to think she’ll still be here in 126 years time, but it annually costs millions to keep her standing.’