Shearings invests as it celebrates record passenger levels
COACH tour and hotels operator Shearings has reported a 6% increase in 2013 earnings and record passenger numbers, despite cutting its ocean cruises.
The Wigan-based company said the increase in EBITDA to £5.8m (2012: £5.5m) was the result of increased bookings – particularly from its core over 50s customer base – alongside margin improvement and cost reductions.
Passenger numbers grew 2.6% to a record 1.05 million.
However, turnover for the year to the end of December 2013 remained flat at £195.0m (2012: £195.6m), which Shearings said was down to a changing product mix and the cessation of its ocean cruise programme.
The private equity-backed group continued to make an overall pre-tax loss, although this was reduced to £2.2m in 2013 and includes an annual £2.5m charge for goodwill amortisation (2012: -£2.7m).
The company increased its investment in hotel refurbishment to £3.6m during the year (2012: £2.7m), whilst in the last twelve months it has taken delivery of 68 new Setra coaches as part of a £16m order, taking its total fleet to 240 coaches with an average age of four years.
Despite the significant investment, overall net debt was further reduced to £7.8m (2012: £9.7m).
Denis Wormwell, chief executive of Shearings Group, said: “This is the second successive year of improved financial results for the group against a challenging backdrop of unfavourable weather in the earlier part of the year and continued pressure on consumer spending.
“Our loyal customers are experiencing the benefit of our ongoing investment programme in hotels, coaches and digital technology and we’ve attracted thousands of new customers with our ever-expanding range of short and long breaks in the UK and overseas markets.”
He added that 2014 is also looking positive with passenger numbers and sales ahead of last year, despite the wettest February on record. The company’s “As seen on TV” short breaks to Highclere Castle – the setting of Downton Abbey – and the new Coronation Street Attraction tour, are proving popular.
Shearings has invested in new mobile websites for its Coast & Country and Bay Hotels brands – over a third of the group’s bookings are made online and this is expected to increase to 50% by 2015.
Wormwell said: “The ongoing rise in bookings and customer volumes has given us the confidence to continue the significant capital investment in our hotel estate. Over the next two years will be investing nearly £10m in room upgrades and facilities which we expect to increase further our repeat booking rates and customer loyalty.”
New products for 2014 include the Battlefields programme in support of the ABF Soldiers charity and an expansion of its premium Grand Tourer programme including escorted tours of the Spanish gardens, Ireland’s country houses and the history of south-east Italy.
