Merlin Entertainments is the largest European entertainments company operating in Europe. Merlin runs 99 attractions in 22 countries across four continents. Our aim is to deliver unique, memorable and rewarding experiences to millions of visitors across our growing estate. We believe that we achieve this objective largely thanks to the commitment and passion of our team and the strength of our brands, which will never fail to be distinctive, challenging and innovative. In every respect and to every group of stakeholders, Merlin will always be an exciting company to be involved with.

http://www.merlinentertainments.biz/

11 Nov Beaufort... N/A Buy

The Naked Trader 6 Nov, lol.

I've put in to buy some of new issue Merlin Entertainments via Barclays. I think the offer closes tomorrow so if you want some you need to be quick.

I don't know if it will be scaled back but I put in for 10 grands worth.

It operates all those vile theme parks that us poor parents get dragged to visit. Full of families eating well over-priced crap. But that is good news for us canny investors!

They operate parks like Legoland , Chessington Sea life and the Eye. All horrible apart from the Eye.

They've had a good year with revenues up over 11% and plan to build more tedious parks all over the world so that more parents can spend a fortune entertaining their spoiled children. And eat their way through wads of revolting fast food junk. Still, good profit margins for us though!

Watch out though - the shares could be a roller coaster ride....

Depends on the pricing as to how long I hold them. I'll wait and see.

No Royal Mail repeat for Merlin Entertainments
By Jamie Nimmo November 13 2013, 10:01am Retail investors have got their hands on 12.5% of the share issueRetail investors have got their hands on 12.5% of the share issue

Merlin Entertainments (LON:MERL), the attractions group behind Legoland and Madame Tussauds, avoided the rush for the exit that Royal Mail (LON:RMG) saw on the first day of trading for retail investors.

Private investors held onto their stock, with the share price barely moved at 345p. This is still 30p higher than the IPO price announced on Friday before institutional investors began swapping shares.

Few people who applied for the £1,000 required to own a stake opted to dump their holdings at the first opportunity.

Retail investors have got their hands on 12.5% of the share issue, while the remaining 87.5% has gone to institutions.

Following the admission, KIRKBI, the founders of Lego, will own just under 30% of the shares; private equity firms Blackstone and CVC Capital will hold 22.6% and 13% of the shares respectively, while management will have a 4.4% interest.

Royal Mail’s shares spiked on their debut as investors who only got £1,000 worth of stock opted to sell at the first chance – a trading tactic known as ‘stagging’.

Shares -

Merlin is a star attraction

Investors with a long time horizon are best suited for new large cap leisure constituent


Alton Towers-to-Legoland operator Merlin Entertainments (MERL) has done well since its initial public offering (IPO), rising 10% on its first day of dealings (8 Nov) to 347p. The challenge for investors not yet in the stock is to decide whether there is still merit in buying the theme park operator given its high valuation.

The flotation was priced at 315p and the shares have since risen to 349.5p to value the business at £3.5 billion. That puts Merlin on 19.9 times Numis’ 2014 earnings forecast. We do not see that as overly-expensive.

Longer-term investors should buy Merlin since best-in-class operators with quality brands deserve a premium rating. Pre-tax profit is forecast to grow by 28% to £193 million in 2013 before further gains to £247 million in 2014 and £283 million in 2015.

Merlin is a worthy stock for a diversified investment portfolio as it runs some of the biggest leisure brands that can be rolled out in multiple geographies. It is a great play on economic recovery in the UK, Europe and the US, with growing opportunities from Asia, the source of 14% of group revenue in 2012. Its boasts a strong market position, high barriers to entry, broadening geographic diversity and internally-funded growth.

Numis forecasts a dividend of 6.1p per share for 2014. The lowly yield of 1.7% is unlikely to deter growth-oriented investors.

Market commentators have warned of lofty capital expenditure requirements and high debt. Numis’ cashflow model shows capex on both maintenance and expansion is much less than net cash generated from operations so there will be money left over to pay a dividend and also reduce debt. Net borrowings are forecast to go from £1.1 billion in 2013 to £741 million in 2017.

Merlin has 99 sites in 22 countries including six resort theme parks, six Legoland parks and 87 Midway attractions whose brands include Madame Tussauds, Sea Life, Falls Creek and The Eye, whose London big wheel is the number one paid-for visitor attraction in the UK.

It will invest in themed accommodation at leisure parks, turning them into resorts; a new Legoland park approximately every three years; and seven new Midway attractions annually costing between £6 million and £9 million each.

The big risk is Blackstone and CVC further sell down their respective 22.4% and 18.4% stakes once a 180-day lock-up period expires in May 2014.

Investors have missed the ride at Merlin Entertainments, claims Credit Suisse
By Jamie Nimmo November 15 2013, 10:07am Stealth at Thorpe Park is one of the rides on Merlin's booksStealth at Thorpe Park is one of the rides on Merlin's books

Investors should not bother queuing up for shares in Merlin Entertainments (LON:MERL), the company behind Legoland and Thorpe Park.

That’s the advice of stockbroker Credit Suisse, which thinks the attractions group’s shares have already hit their peak after just a week on the stock market.

The shares went on offer for 315p last Friday are now at 352p, which is the Swiss broker’s 12-month target price.

It thinks the company, which also owns Alton Towers and Madame Tussauds, offers a robust strategy but thinks the story lacks the exciting upside investors look for.

This is partly based on its ‘detailed’ analysis of customers’ opinions of Merlin’s attractions, which involved clicking on TripAdvisor to see its rating.
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Merlin Entertainment: Credit Suisse initiates with a target price of 352p and a neutral rating.

Analysts may have waxed lyrical about Madame Tussauds group Merlin Entertainments (LON:MERL) before its recent IPO, but Oriel Securities thinks the shares will struggle to rise any further.

Analyst Jeffrey Harwood said: “The shares have risen to a healthy premium over the IPO price of 315p. Merlin is a unique company in the UK market, and looks well placed to continue to grow, but this appears to be reflected in the premium rating of 20 times P/E for 2014.”

The broker has a ‘hold’ recommendation for clients.

Merlin Entertainments was pushed lower by news that a blaze which broke out at the Chessington World of Adventures Resort, southwest of London, forced the outfit to close the theme park.

Merlin Entertainments' dominant brands spell success to Investec

By John Harrington

February 10 2014, 12:03pm
Investec says the group has attractive diversity across its customer demographic, attraction-type (from 2-hour to multi-day visits), geography (22 countries worldwide) and asset base (freehold/leasehold mix).



Investec has started coverage on Thorpe Park and Legoland owner Merlin Entertainments (LON:MERL) with a ‘buy’ recommendation.

In the broker’s view, Merlin offers unrivalled exposure to the global leisure sector, with strong barriers to entry, exceptional brand value and organic growth opportunities.

Investec thinks the entertainment and leisure group has most bases covered, with attractions in 22 countries ranging from those worth a brief visit to those where people visit for several days in succession.

The broker is forecasting a 15% compound annualised growth rate in earnings per share (EPS) between the fiscal years spanning 2013 to 2017. Over the longer term, it expects earnings to maintain this level of annual growth as the group undertakes the roll-out of Midway and Legoland attractions.

“Operational gearing is not high, although flexibility in the cost base minimises returns risk and we regard the projected free cash flow as supportive of a dividend (initial 40% pay-out ratio) that could show incremental proportional pay-out increases as the group de-levers over the medium-term,” Investec said.

Merlin’s current rating places the group at a relatively full earnings multiple against the sector, the broker concedes, but by dividing the enterprise value (market capitalisation plus debt) by underlying earnings (EBITDA) Investec has arrived at a multiple that is a discount to three of its large-cap peers.

“Similar to InterContinental Hotel Group and Carnival, we are supporters of groups with established and dominant global brands, commanding a strong position in leisure and business consumer-facing markets, and driving growth from international expansion and inherent brand value,” the broker’s analyst James Hollins said.

Investec’s discounted cash flow-based price target of 415p implies plenty of upside from the current price of around 360p.

Merlin Entertainment unveils partnership with DreamWorks Animation

Mon, 24 February 2014


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Europe's largest visitor attraction operator, Merlin Entertainments, has unveiled a new partnership with DreamWorks Animation to design and build a visitor attraction based on the Shrek franchise.

The attraction, which is one of six that will be rolled-out across a nine-year period, is scheduled to open in London next year.

The attraction, which will be known as 'Shrek's Far Far Away Adventure', is incremental to Merlin's current midway roll-out programme, with the opportunity to accelerate the pipeline in the future.

Merlin's average investment and returns on the project are expected to be similar to the current midway roll out programme.

Nick Varney, Chief Executive of Merlin Entertainments, said: "Developing an attraction based on Shrek and his friends is hugely exciting for Merlin Entertainments and the start of what we hope will be a wider collaboration with DreamWorks Animation. Merlin's expertise in delivering memorable days out for visitors and DreamWorks' skill in developing globally recognised entertainment franchises will be a winning combination.

"Shrek is the biggest animated franchise of all time, and we are delighted that we are going to add Shrek's Far Far Away Adventure to our portfolio of iconic international entertainment brands."

The agreement marks the first time that Merlin has worked with a Hollywood studio to create a scaleable branded entertainment experience based on a globally recognised entertainment franchise.

Final Results for 2013

http://www.moneyam.com/action/news/showArticle?id=4762915

MIDAS SHARE TIPS UPDATE: Hold on tight…Alton Towers owner can still bring shareholders thrilling profits

By Joanne Hart, Financial Mail On Sunday

Published: 22:01, 17 May 2014 | Updated: 22:01, 17 May 2014


Merlin Entertainments, which owns Madame Tussauds, Alton Towers, Legoland and a host of other attractions, floated last November at 315p. The sellers were also private equity firms, but Midas recommended buying stock and, reassuringly, the shares have since risen by almost 8 per cent to 3391⁄4p.


Last week, the company issued an upbeat trading statement, saying underlying sales rose 12 per cent in the first 18 weeks of 2014. Though this pace of growth is unlikely to continue, City brokers are optimistic about the stock, suggesting the price should rise to at least 400p over the next year.





Upside: Merlin has risen 13 per cent since its debut


The company owns 99 attractions in 22 countries, including America, China and Australia. The recently released Lego film has boosted visits at Legoland parks from Chicago to Tokyo and reasonable weather in Europe so far this year has also boosted Merlin’s sales.


Brokers expect profits to rise from £186 million in 2013 to about £230 million this year and £255 million in 2015. A maiden dividend of 5.85p is forecast for 2014, rising to 6.4p the following year.


Midas verdict: International travel is growing, especially as people from emerging markets become more affluent. Merlin should benefit from this trend.


The company is also expanding, opening its 100th Sea Life earlier this year, adding accommodation to several theme parks and launching new attractions, such as one based on the Shrek films.


Investors who bought in November should hold. New investors could buy on weakness.


Traded on: Main market Ticker: MERL

On watch list dc, chart doesn't look great at mo.

You mentioned NT, checking his trades, he bought 1888 @ 315 on 08.11.13 Target 390 Stop 310. Site may not yet be updated but so far still open despite his target exceeded. Couldn't be bothered trawling through his posts, he may well have sold or added. Will check his next update due on Wednesday.

Cheers Chris, Just like to keep the threads updated for anyone looking in.

Merlin Entertainment to open Legoland park in Japan

Mon, 30 June 2014



Merlin Entertainment has announced plans to open a Legoland park in Japan under its operated and leased model.

The park will cost around £185m, of which Merlin will invest around £53m over the next three years. The pre-tax cash return on invested capital (ROIC) is expected to be around 20%.

The majority of the capital expenditure is expected to be spent over 2015-17, alongside pre-operating expenses of around £8m.

The earnings before interest, tax, depreciation and amortisation (EBITDA) margin is expected to be in the range of 15-20%, which is lower than the existing Legoland operating group average due to the inclusion of a rental charge.

Chief Executive Officer Nick Varney said: "Today's announcement is another major milestone in the development of the Legoland brand.

"The park will make a significant contribution to the growth of the Merlin group from opening in the second quarter of 2017, as well as supporting our continued geographic diversification.

"Long term, we continue to believe that there is significant opportunity for the Legoland brand, with the potential for up to 20 parks across the world and we remain committed to our target of opening a new park every two to three years."

He added that the group was pleased to be working with third party investors Kirkbi on the project, which has a 75% ownership share in the LEGO Group and a 29.9% stake in Merlin.

The City of Nagoya, where the park will be located, has agreed to support the park by redeveloping the local travel infrastructure, including a 5,000 space multi-storey car park and improved road connectivity.

The share price inched 0.14% higher to 354p in the first few minutes of trade.

29 Jul Deutsche Bank 430.00 Buy

Half Yearly Report

http://www.moneyam.com/action/news/showArticle?id=4859308

StockMarketWire.com
Merlin Entertainment said profit growth in the 36 weeks to Sept. 6 has been consistent with management's expectations and is expected to result in full-year EBITDA margins similar to last year's levels.

"The business has continued to trade well over the summer, bringing year to date like for like revenue growth to 6.7%. New Business Development (NBD), primarily consisting of Merlin's Midway roll out programme and new accommodation, has lifted total growth at constant currency to 9.3%, the company said.

At actual exchange rates, total growth year to date was 3.8%, due to the strength of sterling against the Group's main trading currencies.

Midway Attractions experienced an improved summer trading performance after a more subdued start to the year.

Whilst the impact of civil unrest in Bangkok continues to drag on performance, this has been more than offset by the strong performances elsewhere. Trading also benefited from high year capex projects opened since the end of June, including the relaunch of SEA LIFE Busan Aquarium and 'Pirate Beach' splash pad at LEGOLAND Discovery Centre Dallas.

LEGOLAND Parks have continued to deliver good revenue growth. However, as expected, the summer period has seen a tapering of the growth rate as the impact of 'The LEGO Movie', and the associated marketing and promotion opportunities, moderate.

Each park has delivered growth despite challenging comparatives, with the two US parks posting the strongest year-on-year performances. The new 'Legends of Chima' themed waterpark at LEGOLAND California has proved popular with guests and all the new accommodation is performing ahead of expectations.

Resort Theme Parks delivered another strong summer season, although year-on-year comparisons were impacted by a very strong performance in the comparative period. The weather in Northern Europe was generally favourable and the new rides and attractions have been well received.

As anticipated, growth was strongest in Heide Park, which benefited from the new 'Flight of the Demons' winged roller coaster. In addition, Alton Towers Resort built on a good prior year performance with the launch of 'CBeebies Land' and Gardaland saw encouraging year-on-year growth supporting the plan for investment for 2015.

18 Sep Numis 330.00 Hold

Questor share tip: Sell Merlin before private equity do

Questor thinks investors should sell shares in Merlin Entertainments before private equity try and offload them.


Merlin Entertainments increased group like-for-like revenue by 6.7pc during the third quarter,

Merlin Entertainments increased group like-for-like revenue by 6.7pc during the third quarter,


By John Ficenec, Questor Editor

6:00AM BST 19 Sep 2014

Merlin Entertainments
350.6p+10.1p
Questor says SELL


MERLIN Entertainments [LON:MERL], the owner of Alton Towers and Madame Tussauds, said yesterday that it had enjoyed like-for-like revenue growth of 6.7pc during the third quarter.


Questor still thinks the shares are overpriced from a private equity float looking to cash out at the top of the market.


The entertainments group generates its revenue from three key parts of the business: Midway Attractions, which owns Madame Tussauds, London Dungeon and London Eye, generates 45pc of group revenue, Legoland Parks 29pc, and Resort Theme Parks, such as Alton Towers, Thorpe Park and Warwick Castle, 26pc.


Legoland Parks is a global brand in countries such as America, Germany and Asia, and this means that while 40pc of total group sales are still UK based, 26pc are in Europe, 20pc North America and 14pc Asia Pacific. Also while the majority of revenue, 60pc, is still outdoors and weather dependent, the rest – a meaningful chunk – is now indoors.



The Legoland Parks are growing strongly and reported revenue up 13.8pc in the third quarter ended September 6. However, the largest part of the business, the UK-focused Midway Attractions, reported revenue up 3.2pc, reversing a first-half fall in revenue. Resort Theme Parks increased revenue at a steady 4.2pc during the third quarter, but this slowed from 7.7pc like-for-like revenue growth during the first half.

Merlin Entertainments increased group like-for-like revenue by 6.7pc during the third quarter, a slowdown from 8.1pc like-for-like revenue growth during the first half.

Market consensus is for full-year, pre-tax profits of £233m, on revenue of £1.24bn, giving 16.7p in earnings per share. Questor thinks that Merlin shares at 350p are far too expensive – trading on 21 times forecast earnings, falling to 19 times next year – for a company where revenue growth is slowing.

Questor believes there is another problem hanging over the shares. The sale looks like a classic private equity exit. Private equity firms run funds that typically have a 10-year life span: they invest in assets such as Merlin for five years then sell during a five-year period. Blackstone invested in 2005 and CVC invested in 2010. Since 2010, Blackstone has already reduced its ownership from 52pc, and Questor thinks both private equity owners are not in for the long haul.

The clue is in the name: they own equity in private companies where they have control, while public companies are an unwelcome headache. The private equity groups are now free to sell the shares having been restricted for 180 days after the IPO in November last year.

Looking at the shareholder register, Questor believes private equity groups Blackstone, which owns about 14pc, and CVC, which owns about 8pc through Lancelot Holdings, will be sellers of the shares. Kirkbi is the investment arm run by the family that owns the Lego brand. It owns a 30pc stake and has said it is a long-term investor.

The other thing that concerns Questor is that, in addition to slowing revenue growth, cash generation is falling. Cash generated from operations was down £7m to £140m during the first half ended June 28. Once spending on the parks of £104m and interest payment of £32m are subtracted, the company only generated £4m in free cash.

There is also a rather large pile of debt. Net debt was £977m on June 28, and putting that in perspective it is more than shareholders funds of £960m.

Questor believes this is an overvalued, low growth, private equity exit, that investors should sell.

Deutsche Bank Buy 350.60 350.60 430.00 430.00 Retains