Resilient Holidaybreak remains upbeat
NORTH West leisure company Holidaybreak hailed a resilient performance as it said it was confident of delivering good financial results.
While the major players in the holiday market, TUI and Thomas Cook have warned this week that profits will be at the lower end of City hopes due to economic uncertainty and low consumer confidence, Cheshire-based Holidaybreak said it had traded well between the end of March and the close of business yesterday.
It said in a trading statement: ” With the summer season well advanced, Holidaybreak is performing in line with management expectations.
“The group continues to deliver industry-leading margins and is cash generative. The board remains confident of delivering a good financial performance for the year.
Martin Davies, the Northwich company’s new chief executive said: “Given overall economic conditions, I am very encouraged by the resilience and financial performance of our business.
“Particularly pleasing is the performance of our PGL UK outdoor education centres which are showing revenue growth of 8% year on year and are 76% booked for the 2010/11 season.”
“We remain focused on cash generation and cost control whilst continuing to ensure that we invest sensibly in the business.
“Since becoming chief executive in April, I have been working closely with all parts of the business. I am looking forward in the coming months to communicating our plans to enhance the group’s prospects for profitable growth.”
Total group sales are down 1% compared with last year; with demand in the Netherlands weaker than expected.
By division, education sales are level with last year, with the PGL UK business performing strongly as highlighted by the chief executive. The school tours business is down 5% although margins are up.
The company’s hotel breaks arm’s sales intake is 4% below last year, but the company says there has been “encouraging signs of activity” in recent weeks in what is a tough market.
Holidaybreak’s adventure holiday business is also performing solidly.Sales intake for 2010/11 is an encouraging 11% up, evidencing signs of recovery in the adventure travel market;
The company’s Eurocamp and Keycamp businesses has had a tougher time and the division’s profits will face a £1.2m hit as a result of the impact of flooding in the Cote d’Azur in France last month.
The floods destroyed 74 mobile homes, which were not insurer because the cost of cover was “not available at commercially sensible rates.”
“This recent incident could impact the division’s full year profits by approximately £1.2m, due to a write-off of assets (£0.6m) and lost revenue in the period following the flooding,” Holidaybreak said.
