The owners of Aberdeen seaside institution Codona’s have admitted that last year’s energy price rise crisis could have pushed the amusement park to the brink of closure.
The firm warned that if it had been subject to the full effect of rising energy costs last year, it could have been forced to shut its gates – maybe for the last time.
They added the uncertainty caused by last year’s energy price rise crisis has been “horrific”.
Attractions such as the 8oft “Dead Man’s Drop Tower”, the “Apple Family Coaster” and the recently established outdoor karting track can be expensive to run.
Energy hungry business
Director Alfred Codona admitted: “If the rates per kw were at the level discussed last year we would simply be out of business.”
The funfair, which has been based on Aberdeen’s beachfront for more than 50 years, saw its gas prices rise almost ten fold last year but was insulated from a rise in electricity costs as it was tied into a contract – although it is now bracing for an increase in electricity charges when its current contract expires.
Mr Codona said: “The gas price increase we faced in the later part of the year was by far our biggest challenge.
“Our gas price increased almost ten fold from approx 2p per kw to 19p per kw.
“Thankfully we have been tied into a fixed price for our electricity over the past year, however that deal expires in April.
“If the rates per kw were at the level discussed last year we would simply be out of business.”
However, luckily the firm had recorded healthy profits of more than £2.2 million in the year to the end of January 2022 as the Granite city’s famous amusement park reopened following forced closures during the Covid years.
“Thankfully for now at least these rates have come down significantly but the uncertainty surrounding this situation is horrific for almost every business.”
Covid travel changes boosts profits
The family owners reported “exceptional trading above normal levels” in 2021/22 with the lifting of Covid travel restrictions being pinpointed as a successful factor.
A statement signed on behalf of the board said: “After loss reported in the January 2021 accounts the directors are pleased with the results for the year which reflect the improvement in trading due to the lifting in Covid-19 restrictions and reopening of facilities in April 2021.
“During the year the introduction of a new karting attraction has been a success and the company has also benefitted from the foreign travel restriction during the summer and autumn period which resulted in exceptional trading above normal levels.”
The most recent financial accounts filed at Companies House showed turnover soared to £6.6m in year ending January 2022 from £1.6m in year ending January 2021.
And the company, John Codona’s Pleasure Fairs, reported a £2.2m pre-tax profit for the same period, compared to a £567,298 loss for the prior year.
Mr Codona said: “It was great to see such strong support for our park after lockdown. There is no doubt everyone was desperate to get out and enjoy themselves after the rough time we all had.”
The average monthly number of employees, including directors, during the year was 149, up from 112 in 2021.
Offers to help families
Mr Codona said the effects of the cost-of-living crisis is a “huge concern” – which is why the attraction is taking steps to ensure hard-pressed families can continue to enjoy the site.
He said: “Like most the squeeze on finances by the added cost of living is a huge concern.
“Our half price Fully Loaded package had a fantastic response during October last year and was our way of trying to help out a little towards the tough times families are currently facing.
“This is something we will definitely be trying to do again this year.
“Also this winter the most famous and arguably the most loved ride in our park the waltzer has undergone a full refurbishment.
“It will hopefully be back looking as good as ever for this coming Easter season.
“We have some other plans in the pipeline but unfortunately I can’t divulge just yet.”
A new ticketing system, along with health and safety management software was also installed during the lockdown period.
Mr Codona said: “There was a huge amount of work involved in the implementation of these systems but we and our customers are definitely seeing the benefits now, not least by our self service ticket kiosks.”
Covid restrictions hit hard
Codona’s opened at Aberdeen Beachfront in 1970 and has since then become a popular visitor attraction.
It regularly attracted thousands of visitors but the impact of Covid-19 lockdown and restrictions hit the business hard.
In July 2020 it welcomed visitors back after months in lockdown, having sought confirmation from the government and prepared an array of new safety procedures.
But just six days later the attraction was deemed a “travelling funfair” and forced to close all funfair-type rides immediately.
It then reopened in April 2021 with the lifting of restrictions.
Conversation