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Merlin Entertainments says Brexit won't damage its business

By James Davey

LONDON (Reuters) - The boss of Britain's Merlin Entertainments (MERL.L), which runs tourist attractions such as Madame Tussauds waxworks and Legoland, said on Thursday that it would not harm his business if Britain left the European Union.

Merlin Chief Executive Nick Varney, whose company also has attractions in continental Europe, the U.S. and Asia, criticised "overblown statements" by business people on the issue.

Leaders of more than a third of Britain's biggest companies said this week that "Brexit" would put the economy at risk, backing Prime Minister David Cameron's call to stay in the 28-member bloc in a June 23 referendum.

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Airline easyJet has also said Britain should stay in the EU to help keep fares low between European cities.

"In our case we don't think it will make any difference as to whether we're in or we're out of the EU," Varney told Reuters.

"I don't believe that the German government is going to turn round and tell me that they don't want me to employ the thousands of Germans that I employ.

"I don't think local government and city mayors (in Europe)are going to say 'please don't bring your attractions to our cities and regions.' And I don't think German tourists are going to stop wanting to come to London."

Varney said the bigger issue around Brexit is what happens to sterling, noting a weaker pound is helpful for exports and tourism.

On Wednesday sterling sank to a seven-year low as companies and investors rushed to insure themselves against the chances of Brexit that HSBC said could knock a fifth off the value of the pound. [IR:nL8N1634RZ]

"If Brexit happened and the pound went down I don't think that would be too much of a disaster, I think it could be quite good," added Varney.

He was speaking after Merlin reported flat profit for 2015, held back by a drop in visitors to the Alton Towers theme park in central England after a rollercoaster crash in June left five people with life changing injuries.

Britain's Health & Safety Executive said on Thursday that Merlin faced prosecution over the accident.

Merlin, the world's second-biggest visitor attractions group behind Walt Disney (DIS.N), made a profit before tax of 250 million pounds ($348 million) on revenue up 3.9 percent to 1.28 billion pounds, in line with analysts' forecasts after a July profit warning.

Merlin raised its dividend by 4.8 percent and set some new targets for 2020 - 2,000 more accommodation rooms, 40 new attractions for its Midway division, and four new Legoland parks, up from three previously.

Shares in Merlin were up 3 percent at 449 pence at 1127 GMT, valuing the business at 4.5 billion pounds.

($1 = 0.7184 pounds)

(Editing by David Holmes and Keith Weir)