Merlin sees boost to FY results on back of sterling slump

Madam Tussaud's and Legoland owner Merlin Entertainments said the recent slump in the pound against euro and US dollar could help full year results if exchange rates remained unchanged.

The company said it generated more than 70% of its profits outside the UK and the weaker currency could provide a “positive translational impact”. The pound fell sharply in the aftermath of Britain's decision to leave the EU.

Merlin increased pre-tax profits by 1% to £50m, adding that it was too early to be precise about what effect the outcome of the UK referendum will have on the underlying performance of the group. Revenue rose 5.3% to £573m.

“The UK's decision to exit the European Union creates some uncertainty, although our investment plans across the region will remain unchanged, and the relative attractiveness of the UK may be improved,” the company said.

“Recent trading would suggest continuation of the trends experienced year to date, with further recovery within the Resort Theme Park estate and continued growth within Legoland Parks. The Midway trading performance is expected to remain subdued reflecting our cautious view on any near term improvement in the London market.”