Merlin casts a spell as millions more visit

Merlin said total visitor numbers rose by 3.4 million to 38.5 million in the year to December 26, as underlying profits rose 17 per cent to 238.6m.

Chief executive Nick Varney called the business "recession-resilient rather than recession-proof", but added: "People still have high up their demand list quality days out and quality short breaks. Even in difficult times, you need somewhere to take the kids."

He also highlighted the mix and location of attractions as a reason for the group's resilience. Around 90 per cent of visitors to Alton Towers are UK residents, while around 70 per cent of customers at the London Eye are foreign.

Merlin, which is controlled by private equity giant Blackstone, said like-for-like sales across the group were up 6.4 per cent to 769m after stripping out currency effects. Merlin, which currently generates just under half of its revenues in the UK, invested more than 100m in the business last year, including a relaunch of the London Aquarium.

While the group plans to open a new Legoland discovery centre in Manchester later this year, Merlin is focused on overseas expansion, with a Madame Tussauds in Bangkok and a Sea Life centre in Phoenix, Arizona, due to open this year.

The company is also developing further Legoland sites in Florida and Malaysia, which are due to open in 2011 and 2012 respectively.

A month ago Blackstone was reportedly close to floating the business, but shied away from the plans at the last minute due to volatile stock markets.

Other companies, such as US travel business Travelport and high street fashion chain New Look, also pulled public offerings.

Mr Varney refused to comment on the potential revised timetable for a float but said the move "certainly remains a very, very, big option for us".