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Merlin cautious in accident's wake

Attractions company issues profit warning after visitor numbers decline since rollercoaster accident.
July 28, 2015

Theme park company Merlin Entertainments (MERL) has warned of an expected low turnout during the critical summer period for its Alton Towers park on the back of a serious accident earlier this year. A trading update ahead of its half-year results said the incident on 2 June had "an adverse impact" on trading at the start of the summer and has impeded expectations for the full year.

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Sixteen people were injured while riding on the park's Smiler rollercoaster when the carriage they were in collided with an empty one. Two people - Leah Washington, 17, and Vicky Balch, 20 - have subsequently had leg amputations. Merlin reacted by closing Alton Towers temporarily, suspending marketing of the park and closing two other rides for a short time - a combination that has "significantly reduced volumes" at Alton Towers in particular.

Profits for the theme parks division are now expected to be between £40m and £50m for the full financial year, down from £87m in 2014, due to the fallout from the accident, and 2016 could also be affected.