Brighton Pier Group has seen its share price drop by over 57% after it announced plans to delist from London’s AIM stock exchange.

The leisure and entertainment business said its directors had "conducted a careful review" of the benefits and drawbacks to retaining its listing on AIM, and believe the cancellation, with shares valued at 25 pence each, is in the "best interests of the company and the shareholders".

Brighton Pier said it had faced "persistent challenging trading conditions" over the past few years, including COVID, repeat bad weather during peak summer trading periods, and an increase in operating costs following the Autumn Budget.

The company has focused its strategy on cost savings, disposals and the health of the balance sheet, which is "limiting its ability to invest in growing the business", it said.

Cancelling its AIM admission would "materially reduce the company’s recurring administrative and adviser costs by between £250,000 and £300,000 per annum", Brighton Pier added, which the board believes would be a "significant reduction in overhead cost burden" that would allow for cash to be directly invested into the long-term strategy of the business.

Investment director at AJ Bell, Russ Mould, concluded: "The end of Brighton Pier on the stock market is more of a tragedy than a comedy for shareholders as the shares plunge on news of a planned delisting.

"The owner and operator of Brighton Palace Pier has a list as long as your arm of why things have gone wrong including Covid, bad weather, increased costs associated with last year’s Budget and wider pressures on consumer spending.

"Ultimately, it’s hard to see why a business like Brighton Pier needs to be on the stock market and the decision to exit looks logical given the costs of remaining listed."

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