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Merlin Entertainments still struggling to recover from Alton Towers roller-coaster crash

The theme park was closed for four days in June after 16 people were injured on the Smiler

Joanna Bourke,Angela Jameson
Wednesday 02 December 2015 01:42 GMT
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Visitor numbers to Alton Towers have remained significantly down on last year, following the accident on the Smiler roller-coaster in June that left four teenagers seriously injured.

The theme park’s owner, Merlin Entertainments, said an increase in visitors over the normally busy Halloween period helped narrow the year-on-year decline, but trade has still not recovered.

Last week an investigation said “human error” was behind the Smiler crash. Sixteen people were injured and the theme park was closed to the public for four days.

Elsewhere in the leisure group, however, there were more positive performances in the 47 weeks to 21 November. Merlin said revenue growth at its Legoland parks “remains strong” and, outside the UK day-visit market, its accommodation services performed well.

Meanwhile, Midway Attractions, which counts Madame Tussauds and the Blackpool Tower among its brands, showed subdued revenue growth. But Merlin said challenging markets in London and Hong Kong were partly offset by strong performances in the rest of Asia.

The company said it still expected underlying profit before tax for 2015 to be broadly in line with last year. While most of its British parks are now entering a quiet winter period, there are still some significant trading days that remain. “The outlook for new business development more broadly remains positive,” the company added.

The shares rose 1.42 per cent, or 5.8p, to 415p.

Keith Bowman, equity analyst at the broker Hargreaves Lansdown, said: “Merlin remains firmly on the radar for investors.”

He highlighted growth prospects in China and Merlin’s continued opening of new hotels.

Mr Bowman added: “For now, and despite the Alton Towers accident, analyst consensus opinion remains highly favourable in tone, pointing towards a strong buy.”

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