Education to be focus for Holidaybreak’s investment
HOLIDAYBREAK, the owner of Eurocamp and childrens’ adventure holiday brand PGL, returned to profit in the year to the end of March, newly filed accounts reveal.
Acquired in July 2011 by Indian leisure group Cox & Kings for £312m, Holidaybreak, which has retained its headquarters near Northwich, said it expects trading conditions to remain “challenging” this year, but pledged to maintain its recent investment in its education division, which includes Yorkshire-based PGL.
The accounts show that it acquired the remaining 26% stake in Meininger, the German student and school tour accommodation provider, which it didn’t already own for £30m in April.
While Holidaybreak strengthened its education division, it sold Netherlands-based tour operator Djoser BV in February for £10.6m.
In the year total turnover was £385.3m, comprising education (£135.1m), adventure £70.9m), hotel breaks (£80.9m) and camping with annual sales of £98.4m.
Year-on-year comparisons are difficult – the comparative figure is for £562.5m in the 18 months to March 2012.
In the same timeframe Holdiaybreak swung from a £14.5m bottom-line loss to a pre-tax profit of £20.9m – principally the result of the 18 month period including two loss-making periods. Like many leisure businesses Holidaybreak expects a first-half loss when deposits are taken, but the full balance is not settled until later in the year.
Looking ahead the company, which has 3,400 employees, of which 2,000 are seasonal staff, said: “The directors expect the trading enviroment to remain challenging.
“Strategically, Holidaybreak will continue to grow its education business and, having acquired the final tranche of shares in Meininger, the Meininger business.
“All of our businesses will continue to invest in product development whilst improving cash generation and keeping costs under control.”
The accounts reveal that the 2012 Olympics hit bookings in its Eurocamp and Keycamp divisions as more people stayed at home to watch the London showpiece. This was partially off-set by a late surge in bookings in late August and September.
