Merlin counts cost of Westminster and London Bridge terror attacks

Terror attacks took their toll on results at Merlin Entertainments today as the operator of attractions including the London Eye and Madame Tussauds said the atrocities “immediately and significantly” reduced demand.

The spate of attacks, at Westminster, Manchester and London Bridge, means the business “remains cautious” over prospects during the peak summer tourist season.

First-half pre-tax profits across the group were flat at £50 million. But its Midway division, which includes its London attractions, saw operating profits slip 17% to £57 million.

“We are making good progress across most of our businesses, although we remain cautious on the near-term outlook for our UK attractions, reflecting the recent terror attacks,” chief executive Nick Varney said.

Merlin is rolling out new attractions and generated 70% of last year’s earnings outside the UK, giving it some insulation from weakness in particular markets.

The shares cheered 21.3p to 484.1p, or 4%, as the firm held its full-year outlook unchanged.

Shore Capital’s Martin Brown said: “The full-year impact on the group, particularly from the potential drop in overseas visitation to London... will become clearer in around six to eight weeks’ time.”