The share price rise on results day suggests Merlin Entertainment's (MERL) shareholders are relieved. Back in October management warned that poor weather and fears around potential terrorist attacks had resulted in a poor summer season. But a strong start to the year made up for a weaker summer, as did a record number of visitors, so the entertainment company still delivered against consensus profit forecasts.
Legoland parks continued to be the strongest source of revenue for Merlin, with sales up nearly a fifth to £609m. Legoland Japan opened on time and on budget, and plans are already under way to open a Sea Life Centre and a hotel alongside the new park. But poor trading in London meant sales for midway attractions only grew 1.3 per cent, while bad weather in Europe discouraged visitors from visiting theme parks.
Analysts at Peel Hunt expect pre-tax profit of £260m in 2018, giving EPS of 18.8p, compared with £271m and 20.5p in 2017.
| MERLIN ENTERTAINMENT (MERL) | ||||
| ORD PRICE: | 354.5p | MARKET VALUE: | £3.22bn | |
| TOUCH: | 353.3-353.5p | 12-MONTH HIGH: | 554.5p | LOW: 317p |
| DIVIDEND YIELD: | 2.1% | PE RATIO: | 17 | |
| NET ASSET VALUE: | 153p* | NET DEBT: | 74% | |
| Year to 30 Dec | Turnover (£bn) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2013 | 1.19 | 172 | 15.1 | nil |
| 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 |
| % change | +9 | -2 | -1 | +4 |
| Ex-div: | 12 Apr | |||
| Payment: | 17 May | |||
| *Includes £1.02bn of intangible assets, or 100p a share | ||||
