Shares in Brighton Pier Group PLC (AIM: PIER) dropped by 60% in morning trading on Wednesday, following the company’s announcement of plans to delist from the London AIM market and transition to a private company. The decision was attributed to rising operational costs, challenging market conditions, and a lack of investor engagement.
The leisure group—best known for its landmark attraction on Brighton’s seafront—said remaining listed was no longer financially viable.
If approved by shareholders at a general meeting on 22 April, trading in the company’s shares will end on 1 May, after which it will formally re-register as a private limited company.
The Board urges Shareholders that they are not required, if they do not wish, to dispose of their Ordinary Shares in any manner. However, Shareholders should note that, despite the measures the Company shall establish, if the Cancellation proceeds, their ability to trade their Ordinary Shares may be reduced.
The primary motivation behind the decision was cost savings, with the board estimating up to £300,000 in annual reductions from regulatory and advisory fees. Management also highlighted other challenges, including limited share liquidity, market volatility, and the ongoing difficulty of raising capital as a micro-cap company.
While Brighton Pier Group reported that overall performance had been “in line with expectations” over the past year, it noted a slow start to 2025 for its bars and mini-golf businesses. Although warm weather provided a modest boost in pier revenues, total group revenue for the first 12 weeks of the year slipped to £4.2 million, down slightly from £4.3 million during the same period in 2024.
The company pointed to a mix of factors behind the tougher trading climate, including rising wage and energy costs, higher interest rates, shifts in consumer spending habits, and added financial strain from the upcoming National Insurance increase.
Following the delisting, Brighton Pier Group will provide shareholders with a “matched bargain facility” to trade shares but cautioned that liquidity will likely be limited, making it more difficult to sell shares.
Should the Resolutions be passed, a Shareholder has three options with respect to its shareholding in the Company:
1. remain a continuing Shareholder of the following the Cancellation and Re-registration of the Company as a private entity;
2. sell Ordinary Shares prior to the Cancellation, which will occur following the proposed last day of trading on 1 May 2025; or
3. sell Ordinary Shares via the Matched Bargain Facility
The stock fell 64.14% to 6.15 p, valuing the business at just under £2.29 Million Mkt cap
