From a financial perspective, things are moving in the right direction for theme park owner Merlin Entertainments (MERL). But the criticism surrounding the widely reported incident at its Alton Towers attraction hasn't died down. An accident on the Smiler rollercoaster last summer left two passengers undergoing leg amputations and three others seriously injured. Trading was significantly affected, and now the Health and Safety Executive is moving to prosecute the company's UK subsidiary Merlin Attractions Operations. The group says it responded immediately to support those who were injured and has appropriate insurance through which to "provide full compensation in due course".
Alton Towers is just one site, though. The group's Legoland parks are the standout performer, with adjusted operating profit rising nearly 20 per cent on a constant-currency basis last year. Its Midway Attractions division, which includes the likes of 'DreamWorks Tour - Shrek's Adventure!', saw operating profit fall almost 2 per cent at fixed exchange rates. While Asia was strong, the euro's weakness to sterling hit domestic city breaks and inbound tourism to London from Europe.
Analysts at Barclays expect EPS of 20.7p in 2016 compared with 17.8p in 2015.
| MERLIN ENTERTAINMENTS (MERL) | ||||
|---|---|---|---|---|
| ORD PRICE: | 452p | MARKET VALUE: | £4.58bn | |
| TOUCH: | 451p-452p | 12-MONTH HIGH: | 473p | LOW: 361p |
| DIVIDEND YIELD: | 1.4% | PE RATIO: | 27 | |
| NET ASSET VALUE: | 113p* | NET DEBT: | 82% | |
| Year to 26 Dec | Turnover (£bn) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2011** | 0.95 | 96 | 49.1 | nil |
| 2012** | 1.07 | 98 | 8.0 | nil |
| 2013 | 1.19 | 172 | 15.1 | nil |
| 2014 | 1.25 | 226 | 16.0 | 6.2 |
| 2015 | 1.28 | 237 | 16.8 | 6.5 |
| % change | +2 | +5 | +5 | +5 |
Ex-div: 28 Apr Payment: 7 Jun *Includes intangible assets of £923m, or 91p a share **Pre-IPO figures | ||||
