Losses increase at Holidaybreak
TRAVEL company Holidaybreak today said it was happy with its performance despite seeing losses increase.
The European specialist holiday and educational activity group provider saw headline pre-tax losses increase to £15.4m for the six months to March 31, compared to £6.8m for the same period last year. Turnover rose from £100.6m to £156m.
Headline operating loss was up by £6m to £12.8m.
However, the group said losses were expected in the first half of its financial year because of the seasonal nature of parts of its business. It also said the acquisition of businesses which have joined its Education division had also increased losses.
The division, formed following the acquisitions of PGL and school trip specialist NST last year, now accounts for almost a quarter of group revenues.
Hotel Breaks, based in York, offers short holidays in the UK and on the continent and performed well over the period.
The division saw sales over the half year of £75.5m. First half operating profit was £6.8m compared to £6.1m over the same period the previous year.
Sales intake for Hotel Breaks, which employs around 230 people in York, are currently 7% above last year, with trips to London helping to boost revenues.
The company said the London theatre break market remained strong, boosted by exhibitions such as Tutankhamun and China Warriors and theatre shows such as Joseph and Jersey Boys.
The division has already acquired tickets for the 2009 production of Oliver! which it expected to be a major attraction for its customers.
Holidaybreak’s Education division made an operating loss of £3m for the period, while sales in its Adventure Travel and Camping divisions were up by 3% and 2% respectively.
Carl Michel, Holidaybreak’s chief executive, said: “Holidaybreak has performed well. Revenue for the half year is up 55% and we have been delighted with the progress of our newly acquired Education businesses.
“The group enjoys a sound financial position and once again expects to deliver industry-leading margins. Operating cashflow is expected to remain strong. Our operations are resilient and that gives us confidence about the longer-term outlook for the group.”
