Brighton Pier shares hit over profit threat

SHARES IN Brighton Pier Group, the leisure company chaired by Patisserie Valerie chief Luke Johnson, inset, have plummeted on the news that profits will be lower than expected.

Pre-tax profit for the current financial year is now set to be 18 per cent lower than expected.

The company, which owns Brighton Pier and operates a string of bars and golf sites, said bad weather and rail disruption had reduced the number of visitors to its star attraction.

The rail disruption is expected to continue this year, affecting the early part of the pier’s peak trading season.

Shares plunged as much as 44 per cent in early trading on Thursday.

Russ Mould, AJ Bell investment director, said: “When it rains it pours and, just as he looks to get Patisserie Valerie back on track after last year’s accounting scandal, Luke Johnson is now facing a nasty loss on the shares he owns in Brighton Pier plc.”

Mr Mould estimated that Mr Johnson’s holding in the company lost £2.2m of its value in early exchanges. By late morning the stock had recovered slightly and was down 24 per cent at 48p. Problems with the refurbishment of Putney bar Le Fez also contributed to Brighton Pier Group’s troubles. Meanwhile, trading across the wider bar division was flat and the group’s golf division saw steady trading, with plans for new sites in the pipeline.