Merlin Entertainments still eyes float after profits leap

The owner of the London Eye and Madame Tussauds today announced recession-busting results and insisted it could still be poised to join the stock market.

Merlin Entertainments, the world's second-biggest visitor attraction group, said visitor numbersed jump 10% to 38.5 million last year, despite rising unemployment and an economic pinch that has forced families to cut back on treats.

Sales at the group, which also owns Alton Towers, Legoland and Thorpe Park, rose 16% to £769 million, with profits up 16.6% to £239 million.

Merlin was reported last month to have pulled a stock-market float that would have enabled owners including private-equity house Blackstone to cash in their investment.

Chief executive Nick Varney said: "We have been saying consistently that it is a possibility. Stock-market flotation was always one of our options. It continues to be a strong option."

Reports blamed the decision to delay on volatile markets and the reluctance of fund managers to embrace private-equity floats.

Varney expressed irritation at media attempts to characterise all private-equity owned companies as indebted operations that tend not to perform well on the stock market.

Merlin has debts of £1 billion. A float is likely to value it at £2 billion.