Following the complete disaster that was 2017, for much of 2018 Merlin was in recovery mode, climbing from £3.63 to a 9 month peak of £4.17 in mid-July. However, things quickly unravelled in the second half of the year, with a very poorly received Q3 update in October speeding up its decline.
Eventually closing out December at £3.20, the stock has rebounded since the start of 2019, with Merlin Entertainments PLC(LON:MERL) now at a current trading price of £3.64.
Merlin sort of caught a tough break with the reception to its third quarter statement. Organic group revenue for the year to date had risen 4.7%, with a 9% increase at Resort Theme Parks and a 6.4% jump at Legoland Parks, alongside the launch of 2 new brands with Peppa Pig World of Play in Shanghai and The Bear Grylls Adventure in Birmingham.
Yet the company’s like-for-like situation wasn’t quite as perky. As expected, Midway Attractions – which includes Madame Tussauds and the various Dungeon properties – saw a like-for-like sales decline of 0.7%; more worryingly there was a 0.3% drop in the Legoland division, something that was a real sticking point for investors. Resort Parks, meanwhile, saw an 8.3% jump in comparable sales.
The firm went on to state that though it is anticipating reporting 2018 results ‘in line with market expectations’, that is going to be dependent on its performance over the key trading weeks between Halloween and Christmas.
Merlin Entertainments PLC (LON:MERL) has a consensus rating of ‘Buy’ alongside an average target price of £4.03.
Disclaimer: Spreadex provides an execution only service and the comments above do not constitute (or should not be construed as constituting) investment advice or recommendations, or a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any person placing trades based on their interpretations of the above comments does so entirely at their own risk. Spreadex Ltd is a financial and sports spread betting and sports fixed odds betting firm, which specialises in the personal service and credit area. Founded in 1999, Spreadex is recognised as one of the longest established spread betting firms in the industry with a strong reputation for its high level of customer service and account management.
In relation to spread betting, Spreadex Ltd is authorised and regulated by the Financial Conduct Authority. Spread betting carries a high level of risk to your capital and can result in losses larger than your initial stake/deposit. It may not be suitable for everyone, so please ensure you fully understand the risks involved.