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| Alton Towers rollercoaster crash causes Merlin profit warning | Alton Towers rollercoaster crash causes Merlin profit warning |
| (about 2 hours later) | |
| Alton Towers owner Merlin Entertainments says the rollercoaster accident at the theme park in June could affect profits by up to £47m. | Alton Towers owner Merlin Entertainments says the rollercoaster accident at the theme park in June could affect profits by up to £47m. |
| The accident, which resulted in several people being seriously injured, led to the temporary closure of Alton Towers. | The accident, which resulted in several people being seriously injured, led to the temporary closure of Alton Towers. |
| Merlin said that the incident had an adverse effect on trading at the start of the important summer period. | Merlin said that the incident had an adverse effect on trading at the start of the important summer period. |
| Profits for the theme parks division in 2015 are expected to be between £40m and £50m, compared with £87m last year. | Profits for the theme parks division in 2015 are expected to be between £40m and £50m, compared with £87m last year. |
| As well as Alton Towers being closed, Merlin suspended advertising for its theme parks, and rides at other sites were also closed temporarily. | As well as Alton Towers being closed, Merlin suspended advertising for its theme parks, and rides at other sites were also closed temporarily. |
| Merlin said the disruption could continue to affect the profitability of its theme park group in 2016. | Merlin said the disruption could continue to affect the profitability of its theme park group in 2016. |
| 'Devastating event' | 'Devastating event' |
| Sixteen people on the Smiler rollercoaster were injured on 2 June when the carriage they were in riding in collided with an empty one that had come to a halt on the track. | Sixteen people on the Smiler rollercoaster were injured on 2 June when the carriage they were in riding in collided with an empty one that had come to a halt on the track. |
| Leah Washington, 17, had a leg amputated following the accident, while her boyfriend Joe Pugh, 18, suffered severe knee injuries. Vicky Balch, 20, also had a leg amputated, while Daniel Thorpe, 27, suffered a broken leg and a punctured lung. | Leah Washington, 17, had a leg amputated following the accident, while her boyfriend Joe Pugh, 18, suffered severe knee injuries. Vicky Balch, 20, also had a leg amputated, while Daniel Thorpe, 27, suffered a broken leg and a punctured lung. |
| The victims received their first compensation payments last month. All those on the ride will be compensated. | The victims received their first compensation payments last month. All those on the ride will be compensated. |
| Chief executive Nick Varney said: "The accident at Alton Towers in June was a devastating event, for which we have accepted responsibility and are deeply sorry. | Chief executive Nick Varney said: "The accident at Alton Towers in June was a devastating event, for which we have accepted responsibility and are deeply sorry. |
| "We have been humbled by the grace and fortitude of those who were injured, and their families, and will continue to do whatever we can to support them." | "We have been humbled by the grace and fortitude of those who were injured, and their families, and will continue to do whatever we can to support them." |
| Alton Towers could reclaim its position as the UK's favourite theme park, Mr Varley said, but that goal could take between 12 and 18 months to achieve. | Alton Towers could reclaim its position as the UK's favourite theme park, Mr Varley said, but that goal could take between 12 and 18 months to achieve. |
| "There has been a substantial reduction in the visitor numbers at Alton Towers, and to a lesser extent at Thorpe Park," he said. | "There has been a substantial reduction in the visitor numbers at Alton Towers, and to a lesser extent at Thorpe Park," he said. |
| "At the end of the day we have had one accident in the history of this company. I think, hopefully, people believe we have been responsible in the way we have acted." | "At the end of the day we have had one accident in the history of this company. I think, hopefully, people believe we have been responsible in the way we have acted." |
| Merlin said it had implemented additional safety protocols to prevent a similar accident in the future. | Merlin said it had implemented additional safety protocols to prevent a similar accident in the future. |
| The Smiler remains closed, but rides at other parks that had been suspended are back in operation. | The Smiler remains closed, but rides at other parks that had been suspended are back in operation. |
| Analysis: Simon Jack, business presenter | Analysis: Simon Jack, business presenter |
| The owner of Alton Towers, Merlin Entertainments, has started assessing the financial cost of the serious accident which resulted in life-changing injuries for five people and closed the park for five days. | The owner of Alton Towers, Merlin Entertainments, has started assessing the financial cost of the serious accident which resulted in life-changing injuries for five people and closed the park for five days. |
| The financial hit to the theme park division of Merlin is enormous. Operating profits of nearly £90m could be cut to half that. | The financial hit to the theme park division of Merlin is enormous. Operating profits of nearly £90m could be cut to half that. |
| On the overall group, which also owns Madame Tussauds and Sea Life, the impact is lower but today's announcement still amounts to a significant profit warning and shares fell 8% in early trading. | On the overall group, which also owns Madame Tussauds and Sea Life, the impact is lower but today's announcement still amounts to a significant profit warning and shares fell 8% in early trading. |
| Perhaps most telling was the company's admission that the negative overhang from this incident may carry on into 2016. There is a received wisdom in business that people's memories are short. Today's announcement shows that Merlin are not banking on that and realise there is a significant job yet to be done in reassuring rattled thrill seekers. | Perhaps most telling was the company's admission that the negative overhang from this incident may carry on into 2016. There is a received wisdom in business that people's memories are short. Today's announcement shows that Merlin are not banking on that and realise there is a significant job yet to be done in reassuring rattled thrill seekers. |
| Shares fall | Shares fall |
| The profit downgrade was bigger than expected, said Panmure Gordon analyst Anna Barnfather. | The profit downgrade was bigger than expected, said Panmure Gordon analyst Anna Barnfather. |
| Despite the fall in profits from its theme parks division, Merlin said that savings and better-than-expected trading across the wider group meant that annual underlying pre-tax profit would be "broadly in line" with the £249m posted in 2014. | Despite the fall in profits from its theme parks division, Merlin said that savings and better-than-expected trading across the wider group meant that annual underlying pre-tax profit would be "broadly in line" with the £249m posted in 2014. |
| Analysts had expected the company to make profits of £273m this year. | Analysts had expected the company to make profits of £273m this year. |
| Shares fell as much as 8% in the first few minutes of trade, although they recovered to be down just 3.6% at 407.6p in afternoon trading. The shares have risen by about 20% since Merlin floated in November 2013. | |
| Ahead of first-half results due to be issued on Thursday, Merlin said that underlying pre-tax profit was up £9m to £49m, with revenue rising 2.8% on a like-for-like basis, or £31m, to £544m. Revenue from the theme parks division was down 2%.Alton Towers firm in £47m profit alert | |
| Visitor numbers across its attractions - which include Legoland parks, Sea Life, and Madame Tussauds - rose 200,000 to 27.7 million. | Visitor numbers across its attractions - which include Legoland parks, Sea Life, and Madame Tussauds - rose 200,000 to 27.7 million. |
| Merlin said the weak euro had affected visitor numbers at its London attractions, such as The Eye, because the capital was a more expensive compared with the Continent. | Merlin said the weak euro had affected visitor numbers at its London attractions, such as The Eye, because the capital was a more expensive compared with the Continent. |