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Brexit business fears overblown, says Merlin chief | Brexit business fears overblown, says Merlin chief |
(35 minutes later) | |
Warnings by business leaders about the damaging consequences of a vote to leave the EU are overblown and the debate would be improved if bosses stayed out of the fray, the chief executive of Merlin Entertainments has said. | Warnings by business leaders about the damaging consequences of a vote to leave the EU are overblown and the debate would be improved if bosses stayed out of the fray, the chief executive of Merlin Entertainments has said. |
Nick Varney said anguish over the falling value of the pound as the referendum approached was misplaced and that a lower rate of sterling against the euro was good for the economy. | |
Merlin, which runs Legoland, Madame Tussauds and the London Eye, is Europe’s biggest visitor attraction operator. Varney said: “I have a view that the stories of doom and gloom are overblown. We don’t think whether we are in or out makes any difference to us. | |
“I don’t believe the German government would say: ‘Please don’t employ the thousands of people you employ here.’ I don’t believe the German burgermeisters we are talking to would say: ‘Don’t invest in our cities’.” | “I don’t believe the German government would say: ‘Please don’t employ the thousands of people you employ here.’ I don’t believe the German burgermeisters we are talking to would say: ‘Don’t invest in our cities’.” |
The FTSE 100 company’s annual results said potential visitors to its London attractions, including Madame Tussauds and the London Eye, were put off by the strength of the pound against the euro last year. The company has 29 attractions in the UK and 31 in Europe. | |
Varney said sterling’s recent fall against the euro was good news for Merlin and other companies seeking to sell goods and services overseas. He said he could not understand worries about a weaker pound caused by the approaching EU referendum. | |
Asked if he welcomed sterling’s decline, Varney said: “Yes, as every British exporter should. I don’t really understand all the hand wringing that goes on when sterling depreciates because history says that when the pound is below €1.40 it is always better for export industries and job creation.” | Asked if he welcomed sterling’s decline, Varney said: “Yes, as every British exporter should. I don’t really understand all the hand wringing that goes on when sterling depreciates because history says that when the pound is below €1.40 it is always better for export industries and job creation.” |
When the pound was strong against the euro, tourism from Europe tended to drop off and British families were more likely to holiday in Spain and Portugal, he said. | |
Almost 200 business leaders, including bosses of about a third of the FTSE 100 group of leading public companies, signed a letter this week warning that leaving the EU would threaten investment and jobs. Varney said he was asked to sign the letter but declined. | |
“There are much bigger issues around sovereignty that the debate should legitimately be around,” he said. “I have my personal opinions and I don’t think the fear factor should be driving that debate. I certainly didn’t sign it.” | |
Merlin’s pre-tax profit for the year to the end of December rose by £1m to £250m. Profit barely grew because of a slump in visitors to Alton Towers, where a rollercoaster crash injured 16 people in June. Five of those were seriously wounded and two women’s legs were amputated. | |
Merlin took full responsibility for the crash and on Thursday the Health and Safety Executive said it would prosecute the company over the incident. | |
Varney said the crash and its effects meant last year was the most difficult in Merlin’s history. “In a business where what gets you out of bed is the desire to to give people a memorable experience it can’t be anything other than traumatic. We are trying to make sure something like that will never happen again,” he said. | |
Merlin shares rose 4.7% to 455p after Varney announced fresh growth targets, including four new Legolands and 2,000 extra rooms by 2020 – double the previous goal for additional rooms. |
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