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Merlin shares start to recoup losses

The fallout from its Alton Towers rollercoaster accident seems to be retreating as the group's shares start to rise again
December 1, 2015

Trading at the Alton Towers theme park has inevitably remained "significantly below" the prior year, according to management at its parent company, Merlin Entertainments (MERL). But shares have started recouping their losses since the fallout from the June accident on the Smiler rollercoaster, which left several people severely injured.

IC TIP: Buy at 415p

The group said trading since its September update had been in line with expectations thanks to like-for-like revenue growth at its Legoland attractions and a good performance from its accommodation division. Its Midway Attractions division - which includes Madame Tussauds - has seen lower like-for-like revenues due to "challenging markets in London and Hong Kong".