Merlin Entertainments (MERL) delivered a solid set of full-year numbers for 2018, with a slight uptick in revenues underpinned by a focus on transforming its theme parks into "destination resorts". Indeed, thanks to the opening of 664 hotel rooms, sales for Legoland Parks grew by 4.4 per cent to £636m, or 6.4 per cent organically. A further 372 rooms are expected to boost this roster in 2019.
Meanwhile, revenues for the group’s Midway attractions fell 1 per cent on a reported basis to £650m, but saw a 1.1 per cent organic improvement – reflective of a recovery in London trading, after the city’s tourist market suffered due to terrorism fears in 2017. Midway also launched two new brands during the period – 'Peppa Pig World of Play' in Shanghai and 'The Bear Grylls Adventure' in the UK. A further 10 attractions are due to launch this year.
Meanwhile, operating free cash flow rose by nearly a tenth to £345m, while the post-period-end disposal of two "non-core" ski resorts should bring in an extra AU$174m (£93m).
Prior to these results, broker Numis expected adjusted EPS of 20.6p for 2019 (down from 22.9p in 2018).
| MERLIN ENTERTAINMENTS (MERL) | ||||
| ORD PRICE: | 365.3p | MARKET VALUE: | £3.73bn | |
| TOUCH: | 365.3-365.8p | 12-MONTH HIGH: | 416p | LOW: 305p |
| DIVIDEND YIELD: | 2.2% | PE RATIO: | 16 | |
| NET ASSET VALUE: | 171p* | NET DEBT: | 68% | |
| Year to 31 Dec | Turnover (£bn) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2014 | 1.25 | 226 | 16.0 | 6.2 |
| 2015 | 1.28 | 237 | 16.8 | 6.5 |
| 2016 | 1.46 | 277 | 20.8 | 7.1 |
| 2017 | 1.59 | 271 | 20.5 | 7.4 |
| 2018 | 1.69 | 285 | 22.5 | 8.0 |
| % change | +6 | +5 | +10 | +8 |
| Ex-div: | 11 Apr | |||
| Payment: | 16 May | |||
| *Includes intangible assets of £1.02bn, or 103p a share | ||||
