Merlin shares tanked today due to missed targets largely blamed on weather & terrorist attacks, the main concern being the Midway attractions.
Hidden in the details from Hargreave Lansdown is the following: -
"Merlin confirmed its intention to reallocate its capital investment in a bid to address the "ongoing volatile market environment" and underlying cost pressures, reducing its existing estate capital expenditure by £100m over the 2018-2021 period, which would fund accelerated investment in the firm's accommodation and its 'productivity agenda'."
Does this mean further cutbacks? So roughly £30m to save each year, where will those savings be found? Obviously that money will be ploughed into more accommodation. Surely guests will only be attracted if there is consistent investment in attractions.
Hidden in the details from Hargreave Lansdown is the following: -
"Merlin confirmed its intention to reallocate its capital investment in a bid to address the "ongoing volatile market environment" and underlying cost pressures, reducing its existing estate capital expenditure by £100m over the 2018-2021 period, which would fund accelerated investment in the firm's accommodation and its 'productivity agenda'."
Does this mean further cutbacks? So roughly £30m to save each year, where will those savings be found? Obviously that money will be ploughed into more accommodation. Surely guests will only be attracted if there is consistent investment in attractions.
