Holidaybreak chief Michel quits unexpectedly

HOLIDAYBREAK’s highly-regarded chief executive Carl Michel has stood down, it was announced today.

The company based in Northwich Cheshire, which has recently completed a £33m rights issue, said the 46-year-old had decided to “stand down from the role for personal reasons unconnected with the business”.

Oxford and Harward educated, Mr Michel joined Holidaybreak in September 2005 and has led the drive into the education sector. He will be replaced in the short term by chairman John Coleman, the former House of Fraser chief, who is taking on an executive role until a new CEO is found.

The shock departure of Mr Michel, who will formally leave in September but who has already handed over day-to-day control of the business, overshadowed a trading update from the company, which said it continued to perform well in tough times.

“Trading prospects for the current financial year remain satisfactory and in line with management expectations for the full year.

“Overall, the group is now booked at 94% of our target sales, with year to date sales up 2% on last year.”

In the wake of the rights issue the company has considerable funds for expansion and said it was continuing to make progress with one target,  a large outdoor education cenrtre.

Holidaybreak said sales in the education division for 2008/9 are up 11% (7% on a like-for-like basis), in line with expectations.

For 2009/10, the division is 50% booked. PGL outdoor education centres are 74% booked and are showing revenue growth of 6% year on year.

Hotel Breaks sales for 2008/9 are down 4%, a marginal improvement from previous updates.

It said the adventure travel market remains “difficult”, while sales in the camping division, made up of Eurocamp and Keycamp, are up 1% but 4% down at constant exchange rates, on 4% lower capacity than last year.

Mr Coleman said: “The current financial year is progressing as expected and we are on track to meet management expectations for the full year.

“With some key selling weeks remaining, later bookings, particularly in the camping division, are coming through, as expected.

“Education, our largest division, continues to perform well and we are pleased with our newest facility, Windmill Hill, which opened for business in May.

“The previously announced restructuring programme for the Adventure Travel Division is progressing as planned. There has been no material impact on our businesses arising from the swine flu pandemic.”

“The education division’s visibility for 2009/10 provides a healthy outlook. However, the global economic environment remains challenging and we continue to manage the entire business tightly, with a focus on cash generation and cost control.

“With the resources now available to expand our education businesses, we hope to capitalise on appropriate investment opportunities in due course.”

“We have a strong management team in place at Holidaybreak and I look forward to leading the team and running the business day to day while we find a suitable successor to Carl.

“On behalf of the Board I thank Carl for his contribution to the business over the last four years.”