Efficiency and investment pays off for Shearings

SHEARINGS, the specialist coach tour and hotels operator, has reported a year of positives, with growth in passenger numbers, earnings and revenues and also a reduction in debt.

The Wigan company said passenger numbers had risen more than 3% in 2012 to top one million for the the first time.

Earnings rose 20% to £5.5m as group revenues nudged forward 1% to £195.7m.

Despite investing £2.7m in revamping its hotel properties and renewing its coach fleet, net debt was cut £5.4m reduction to £9.7m.

The company  which provides holidays and hotel breaks for the over 50s market, said its focus on providing value for money, quality holidays at a time of reduced household budgets was behind the growth.  
 
It said a number of efficiency initiatives had led to the group’s “significantly improved profitability”.
 
This year Shearings plans to investing further in its hotels, coach fleet and customer relationship management system. The hotels will see £3.5m invested in them while £7m will go to the coach fleet, funded by a new £11m leasing agreement.
 
The Group said like for like bookings in the 10 weeks to 11 March were ahead of last year, with particularly strong performance from European coach holidays, which are seeing double digit growth, and river cruises, following the addition of two new ships to the fleet in 2013.

Chief executive Denis Wormwell said: “The group made good strategic progress in 2012 and delivered much improved financial results.
 
“By staying true to our promise of value for money, high quality holiday and hotel breaks, combined with breadth of choice, we were able to capture a greater share of the market and carry a record number of passengers last year. This has been supported by significant investment in our hotels, holiday product and coaches, which will continue in 2013.  
 
“We are targeting a large and attractive market across a demographic that continues to expand. By combining a market leading position in escorted tours and a growing UK leisure hotel business, we’re confident we can continue to further improve performance in the coming year.”