Sales down, losses up at Holidaybreak
HOLIDAYBREAK, the education, camping and short break leisure group has posted higher first half losses on lower sales.
The Cheshire-based company said its figures were in line with expectations and showed its resilience. Despite the higher loss its half year dividend was increased 5% as a sign of confidence for the full year.
In the six months to the end of March the Northwich-based group said sales had fallen to £139.6m from £150.2m in the same period last year, while headline losses before tax had risen from £17.7m to £19.2m.
Like its sector peers Holidaybreak usually makes a half year loss due to the seasonal nature of its education and camping businesses.
While its PGL school holidays business was still doing well, the company said consumers booking its Eurocamp and Keycamp holidays were booking later due to economic uncertainty.
“Sales intake for the year to date is 4% below last year reflecting a difficult trading and operating environment for our traditional travel businesses and a later booking trend at camping,” the firm said.
In addition Holidaybreak is nursing a £1m loss from the impact of the political uprisings in the Middle East, North Africa and Asia which affected its advernture holidays arm and hotel breaks business.
Chief executive Martin Davies said: “We have delivered a resilient performance in the first half despite the difficult trading environment. Our education businesses continue to perform well, evidencing the strong social, political and demographic drivers for growth, and I am particularly excited about the growth prospects for Meininger and the potential to extend our offering to the large German education market.”
“We continue to review the overall group portfolio as we look to strengthen the education share of the group. In the meantime, all of our businesses are being managed tightly, with a focus on cash generation, margin and cost control and we expect to perform in line with our expectations for the year ending 30 September 2011.”
Net debt at the half year was £148.8m, up from £129.2m last year. This was due to the £30m acquisition of a 50% stake in German accomodation provider Meininger last December.
Looking ahead Holidaybreak said: “Our largest division, education … continues to perform well and has strong visibility in the current financial year with 96% of revenue booked and 39% of 2012 target revenue already secured.
“We continue to manage all of our businesses tightly with a focus on cash generation, margin and cost control and we expect to perform in line with our expectations for the year ending 30 September.”
