Final Results

Holidaybreak PLC
02 December 2002


For Immediate Release:                                       2 December 2002


                               Holidaybreak plc

       ANNOUNCES PRELIMINARY RESULTS FOR THE YEAR ENDED 30 SEPTEMBER 2002

Holidaybreak plc ("HBR"), the provider of specialist holidays, today announces
its Preliminary results for the year ended 30 September 2002.

                                   Highlights

• Group turnover and profits reach record levels:
   •     Turnover £218.7m - up 13.6%
   •     PBT £27.1m - up 13.7%
   •     EPS 42.5p - up 11.6%

• Full year dividend of 20.0p per share - increased by 11.1%

• Camping Division:
   •     Sales : £109.2m - up by 5%
   •     Acquisition of Eurosites from MyTravel for £29.9m
   o     Outperformed the mass market air package holiday companies
   o     Increasing range and capacity of mobile-home accommodation to satisfy
         growing demand

• Hotel Breaks:
  •      Sales: £76.9m - up by 33%
  •      Consumer demand buoyant and capacity plentiful
  •      Significant margin improvement
  •      Rapid growth in online demand
  •      Successful launch of 'accommodation only' European Cities programme

• Adventure Holidays:
  •      Sales: £32.6m - up by 5 %
  •      Resilient performance in difficult market conditions
  •      Strong recovery from major set back post 9/11

• Appointment of new Chairman:
  •      Robert Ayling, former BA Chief Executive, will replace Angus
         Crichton-Miller as Chairman in June 2003 and will join the board as a
         Non-Executive Director in February 2003

Commenting on the results, Angus Crichton-Miller Chairman of Holidaybreak, said:

"Holidaybreak has had another excellent year when many of our competitors have
struggled.  The acquisition of Eurosites further establishes Holidaybreak as the
leading operator within this resilient and profitable sector and demonstrates
both the innate strength of the businesses and a stable management team.
Further profitable progress should continue into 2003."

For further information, please contact:
Richard Atkinson, CEO                         On 02.11.02:  020 7466 5000
Holidaybreak                                                 01606 787100

Tim Anderson /Louise Bolton
Buchanan Communications                                     020 7466 5000


                                Holidaybreak plc

           Preliminary Results for the Year to 30 September 2002



CHAIRMAN'S STATEMENT



Holidaybreak has had another excellent year. Profits and turnover have reached
record levels, with the increases coming almost entirely from organic growth.
Substantial cash has been generated and we have made an important addition to
our core Camping business.



In the year to September 30th 2002, profits before goodwill amortisation,
impairment and tax rose by 13.7% to £27.1m on turnover of £218.7m, up 13.6%.
There were no exceptional items. Headline earnings per share rose 11.6% to 42.5p
and the proposed final dividend would result in an overall annual dividend of
20.0p (up 11.1%).  Net debt, before the cost of acquiring Eurosites, was reduced
by £21.8m.



DIVIDEND

The Board is recommending a final dividend of 14.1p, payable on April 21st 2003,
to shareholders on the register on March 21st 2003, making a total of 20.0p for
the year.  Dividend cover will be 2.1 times, in line with our policy of
maintaining approximately two times cover.



THE DIVISIONS

Each of our three divisions can look back on 2002 with a good deal of
satisfaction. In a difficult year for many overseas holiday companies, Camping
has outperformed the mass market air package operators. Hotel Breaks has built
on an excellent result in 2001 with further rapid growth in 2002 and the
Adventure Division has increased revenues and remained profitable despite a
major setback post-September 11th.



Camping Division

The UK market for overseas camping and mobile-home holidays proved extremely
resilient in 2002. Consumer sentiment was weaker in European markets,
particularly Germany, but with continuing trends away from tented accommodation
to higher value mobile-homes, sales increased by 5% and margins also showed a
slight improvement.



Hotel Breaks Division

Hotel Breaks benefited from buoyant UK consumer demand and plentiful capacity to
record a 33% revenue uplift. The major driver was a further substantial increase
in on-line internet demand, although sales through all other distribution
channels also moved ahead. This, together with significant economies of scale,
resulted in an improvement in margins and very strong profits growth.



Adventure Division

Our two Adventure businesses, Explore Worldwide and Regal Diving, suffered
immediate and significant fall-out from the New York terrorist attacks.
Customers postponed or cancelled holidays in large numbers, popular destinations
were off limits and the scheduled airline sector was thrown into crisis with a
knock-on effect on many tour companies.   Our own sales recovered strongly as
the year progressed and revenues eventually finished a creditable 5% up on 2001.
However, margins were affected by reduced tour load factors and a higher
overhead ratio which were a consequence of the postponements, cancellations and
airline problems referred to above.



ACQUISITION OF EUROSITES

We announced the acquisition of Eurosites, the camping and mobile-home operator,
from MyTravel plc on September 30th of this year for a total consideration of
£29.9m. Our investment in this resilient and profitable sector of the holiday
market, which we know well, is expected to provide attractive returns as well as
significant strategic benefits. To date, integration of the two businesses is
proceeding according to plan but Eurosites continues to trade as a separate
brand.



CURRENT TRADING AND PROSPECTS

With such a strong weighting towards the summer period, it is too early to
forecast with confidence the eventual outcome for our various businesses in the
current year. Moreover, customers now book their holidays later than ever unless
incentivised by unrealistic prices or no deposit deals, strategies which make no
sense for the sectors in which we operate. The current experience of our year
round businesses, Hotel Breaks and Adventure, is that underlying demand is
strong but late in coming through.



Summer 2003 sales to date for the newly enlarged Camping Division are 3% below
2002 equivalents, a satisfactory figure given the market context and, in the
case of Eurosites, acquisition linked issues. We anticipate an improvement in
performance as full integration of the business takes effect and availability
tightens.



Hotel Breaks revenues for the year, including forward bookings, are 33% better
than 2002. The outlook once again looks favourable with another excellent
performance in prospect, although the rate of year on year increase is unlikely
to be sustained. Internet linked growth, whilst still extremely strong, is
slowing and bookings in the early weeks of the 2002 campaign were held back by
the effects of September 11th.    Prospects for 2003 are enhanced by the
expansion of our 'accommodation only' European Cities programme which was
successfully launched last year.



Adventure's revenues are 40% ahead of the 2002 equivalents although the year on
year comparison is inevitably flattered by the post-September 11th disruption in
autumn 2001. However, there is very strong underlying demand for this type of
holiday and we are confident that the business will grow strongly this year.



STRATEGY

Holidaybreak has grown and prospered in recent years through steady organic
growth supplemented by carefully selected acquisitions. We will continue to
pursue this strategy. We see good prospects for all our divisions. Hotel Breaks
and Adventure are aiming to consolidate  existing market leader positions and
will continue their current programmes of product and sales channel development
which are key growth drivers in both businesses.



In Camping, our principal focus will be on increasing the range and capacity of
mobile-home accommodation to satisfy growing demand whilst increasingly
targeting UK customers from the wider self-catering sector. The acquisition of
Eurosites has substantially increased the size of our mobile-home fleet and has
also provided us with the opportunity to achieve operational efficiencies and
economies of scale.  In our continental markets, where (unlike the UK) there is
established demand for more budget style camping holidays, we are launching a
new product which will offer accommodation in camp-site owned mobile-homes.



Amongst the numerous acquisition opportunities which have been presented to us
in recent years only a few have, in our view, offered the strategic and
financial value that we seek. Future acquisitions will most likely be integrated
into one of our three existing divisions.  However, we are also prepared to
acquire a travel or travel related business which would form a separate division
within the Group, as was the case when we purchased Superbreak in 1995 and
Explore Worldwide in 2000.



NON-EXECUTIVE DIRECTORS

James Wallace joined the Board as a non-executive director on May 1st  2002,
replacing Peter Folkman. He has assumed chairmanship of the Audit Committee and
has already made a valuable contribution. Peter Folkman gave able service during
his for four and a half years membership of the Board, a period of substantial
progress for the Group.



My second three year term as Chairman expires at the end of May 2003 and, as had
always been planned, I will be stepping down from the position and the Board on
that date. My successor will be Robert Ayling, former chief executive of British
Airways.  He will join the Board as a non-executive director and Chairman
Designate on February 1st 2003. We are delighted that he has agreed to join
Holidaybreak and are looking forward to working with him and benefiting from his
expertise.



EMPLOYEES

As ever, our 771 permanent employees, spread across seven countries, have proved
an indispensable resource for the continuing success of the business. I take
this opportunity to thank all for their continuing vital contribution to the
Holidaybreak group.



IN CONCLUSION

We have recorded another excellent performance and achieved a further
significant increase in shareholder value, in a year in which many holiday
businesses have struggled.  This demonstrates both the innate strength of the
businesses and the quality of a stable management team.  Further profitable
progress should be made in 2003 and, supported by the strong cash generating
characteristics of the group, longer term prospects remain excellent.





Angus Crichton-Miller

Chairman



FINANCE DIRECTOR'S REVIEW



In the year to 30 September 2002 Holidaybreak plc showed a strong financial
performance in all its activities and the Group achieved increases in profit
before goodwill amortisation, impairment and tax and earnings per share of 13.7%
and 11.6% respectively. At the end of the year, the Group invested £29.9m in the
Camping division with the acquisition of Eurosites. The continued underlying
trend of growing profitability and strong operational cash flows of all our
businesses will enable us rapidly to pay down debt and rebuild interest cover.



GROUP PROFIT AND LOSS ACCOUNT

Turnover in 2002 was up 14% on 2001 at £218.7m (2001 £192.5m). Operating profit
before amortisation and impairment of goodwill increased by 9% to £29.2m (2001
£26.7m). Headline earnings per share, stated before amortisation and impairment
of goodwill, were 42.5p per share, an increase of 11.6 % over 2001 (38.1p).



The interest charge of £2.1m (2001 £2.9m) was down significantly as the Group
benefited from the strong operating cash flow of all its businesses. Interest
cover increased from 8.6 times in 2001 to 12.3 times in 2002. The Group's tax
charge, including full provision for deferred tax, was £7.1m and the tax rate
was the same as 2001 (30%).



The proposed final dividend of 14.1p per ordinary share represents an increase
of 12% over 2001 and gives a total dividend for the year of 20.0p per ordinary
share (2001: 18.0p). Our policy is to increase dividends whilst maintaining
dividend cover at over 2 times.



DIVISIONAL RESULTS

Camping Division Sales were up by 5% to £109.2m (2001 £103.7m). Operating margin
improved to 17.4% (2001: 17.2%) and operating profits were 6% higher at £19.0m
(2001: £17.8m).



Hotel Breaks Revenues were 33% higher at £76.9m (£57.8m). Operating margin
improved to 10.2% (2001: 9.5%) and operating profits increased by 43% to £7.8m
(2001 £5.5m).



Adventure Division Recovered from the impact of September 11th and sales at
£32.6m were 5.1% higher than 2001 (£31.0m). However, operating margin fell to
7.2% (2001 10.9%). As a result operating profit for the division was down by
28.5% to £2.4m (£3.4m).



ACQUISITIONS

On 30 September 2002 we completed the acquisition of Eurosites from MyTravel
plc. This acquisition, completed on the final day of the year did not impact the
trading results of the Group. The total consideration of £29.9m was financed
entirely from debt. During the year our Hotel Breaks Division acquired  the
Crystal Britain programme from TUI (UK), for a nominal cash consideration.



At the time of the acquisition of Eurosites, we negotiated new facilities with
our principal banks including £115m of Medium Term Loans and Revolving Credit
Facilities to finance the Eurosites acquisition and its working capital
requirements.



BALANCE SHEET

Net assets of the Group increased to £37.1m (2001: £28.0m). Net debt gearing at
30 September 2002 was 87.3% compared to 89.5% at the previous year end. Prior to
the acquisition of Eurosites on 30 September, net debt was approximately £3.3m,
a reduction of £21.8m, reflecting the strong operating cash flow of our
businesses.



Investments of £3.2m (2001: £1.9m) include shares in the Company purchased by
the wholly owned subsidiary, Holidaybreak Trustee Limited, in respect of the
company's various share option and share award schemes. Full details of all such
schemes will be included in the Annual Report and Accounts.



CAPITAL EXPENDITURE

Net capital expenditure in the year to 30 September 2002 was £15.1m (2001:
£15.6m). The majority of this was accounted for by the Camping Division but
Adventure invested £1.7m for the purchase of the freehold of their previously
leased office premises.



The Camping Division spent a total of £12.6m on mobile homes, tents and camping
equipment. Mobile homes at £8.7m accounted for the bulk of expenditure with
capacity growing by 7%. In addition, the acquisition of Eurosites added another
2,770 mobile homes to the fleet. Disposal proceeds in respect of mobile homes
sold at the end of their useful life were £2.0m. Overall sales achieved net book
value.



The Group's depreciation policy is to write-down the cost of mobile homes to an
estimated residual value over their projected economic life, usually six
seasons. In order to extend this economic life, we are sourcing units of higher
specification from European manufacturers and introducing a refurbishment
programme for existing units. The number of units for replacement, including
Eurosites' units, will increase in 2003 and hence we expect an increased level
of capital expenditure in the year ended 30 September 2003.



CASH FLOW

The Group's net borrowings at 30 September 2002 were £32.4m, compared with
£25.1m in 2001. This included the cash outflow of £31.0m in respect of
acquisitions. Cash flow from our operating activities was £54.0m, another very
strong performance.



Following the Eurosites acquisition, available bank facilities are now  £140.0m
and are sufficient to meet the working capital, investment and bonding
requirements of the Group.  In addition to these facilities we entered into hire
purchase agreements with various UK financial institutions to finance the
purchase of mobile-homes.



CAPTIVE INSURANCE

Following the collapse of Independent Insurance plc in 2001 and a subsequent
substantial increase in insurance premiums, the Group has established a Captive
Insurance subsidiary to underwrite the property damage and business interruption
risk arising from incidents of storm, tempest and flood for our camping assets
in Europe. All other insurance is underwritten by third-party insurance
companies.



FOREIGN CURRENCY AND INTEREST RATE RISK MANAGEMENT

The Group's transactional foreign currency exposures arise from the sales of
holidays in overseas markets and the costs of operating overseas, particularly
accommodation and travel. Currency revenues, principally Euros and US Dollars,
represent approximately 19% of total Group revenues. Currency outflows account
for 29% of all Group costs. The Group's policy is to hedge all currency
exposures and we have entered into forward contracts to hedge all our expected
trading cash flows for the next twelve months.



The Group's exposure to interest rate fluctuations on its borrowings is managed
by using interest rate swaps and forward contracts. At 30 September 2002, the
proportion of the Group's gross borrowings at fixed and capped rates was 47% and
the average rate was 6.47%. The gross cash position was fully floating.



The Group incurred no material costs arising from the introduction of the single
European currency. UK entry into the single currency, the timing and likelihood
of which continues to remain uncertain, would benefit the Group by eradicating
significant currency exposures and reducing transaction costs.





Robert Baddeley

Finance Director



Holidaybreak plc - Consolidated profit and loss account
Year ended 30 September 2002




                                                                                    2002           2001
                                                                                    £000           £000

Turnover                                                                         218,748        192,489
Cost of sales                                                                   (156,123)      (136,485)
Gross profit                                                                      62,625         56,004
Net operating expenses                                                           (36,471)       (31,496)

Operating profit before goodwill amortisation,                                    29,182         26,674
impairment and exceptional costs
Goodwill amortisation                                                             (1,683)        (1,703)
Goodwill impairment                                                               (1,345)              -
Exceptional costs                                                                      -           (463)
Operating profit                                                                  26,154         24,508


Investment income                                                                    443            725
Interest payable and similar charges                                              (2,566)        (3,590)

Profit on ordinary activities before taxation                                     24,031         21,643


Tax on profit on ordinary activities                                              (7,120)        (6,289)

Profit on ordinary activities after taxation                                      16,911         15,354
Dividends paid and proposed                                                       (9,295)        (8,343)

Retained profit for the year                                                       7,616          7,011


Earnings per ordinary share
Headline earnings per ordinary share                                               42.5p          38.1p
Basic earnings per ordinary share                                                  36.5p          33.4p
Diluted headline earnings per ordinary share                                       41.5p          37.5p
Diluted basic earnings per ordinary share                                          35.7p          32.8p


Dividend per ordinary share:
Interim                                                                             5.9p           5.4p
Final                                                                              14.1p          12.6p
Total                                                                              20.0p          18.0p



Holidaybreak plc - Consolidated statement of total recognised gains and losses
Year ended 30 September 2002

                                                                                    2002           2001
                                                                                    £000           £000
Profit for the financial year                                                     16,911         15,354
Gain / (loss) on foreign currency translation                                         14            (52)
Total gains and losses recognised since last annual report                        16,925         15,302




Holidaybreak plc - Consolidated balance sheet
30 September 2002


                                                                                     2002                 2001
                                                                                     £000                 £000

Fixed assets
Intangible assets                                                                  45,396               31,600
Tangible assets                                                                    72,034               57,728
Investments                                                                         3,191                1,896
                                                                                  120,621               91,224
Current assets
Assets held for disposal                                                            2,365                2,626
Debtors                                                                            15,462               13,421
Cash at bank and in hand                                                           61,854               49,169
                                                                                   79,681               65,216

Creditors: amounts falling due within one year                                    (75,446)             (61,925)

Net current assets                                                                  4,235                3,291

Total assets less current liabilities                                             124,856               94,515


Creditors: amounts falling due after more than one year                           (81,799)             (60,499)

Provisions for liabilities and charges                                             (5,962)              (6,022)



Net assets                                                                         37,095               27,994


Capital and reserves


Called up share capital                                                             2,350                2,317
Share premium account                                                              31,911               28,728
Other reserves                                                                         87                   87
Profit and loss account                                                             2,747               (3,138)


Equity shareholders' funds                                                         37,095               27,994


Holidaybreak plc - Consolidated cash flow statement
Year ended 30 September 2002


                                                                 2002          2002          2001          2001
                                                                 £000          £000          £000          £000

Net cash inflow from operating activities                                   54,018                      39,684


Returns on investments and servicing of finance

Interest and other investment income received                    560                         725
Interest paid                                                 (1,626)                     (1,772)
Interest element of hire purchase payments                    (1,151)                     (1,445)
                                                                            (2,217)                     (2,492)

Taxation
UK corporation tax                                            (5,888)                     (6,482)
Overseas tax paid                                             (1,145)                     (1,118)
                                                                            (7,033)                     (7,600)

Capital expenditure
Purchase of own shares                                          (695)                       (822)
Sale of other investments                                           -                          5
Purchase to acquire tangible fixed assets                     (9,201)                     (9,839)
Receipts from sale of tangible fixed assets                    2,021                       2,936
                                                                            (7,875)                     (7,720)

Acquisitions and disposals
Purchase of business and subsidiary undertakings             (31,032)                           -
 (net of cash acquired)
                                                                           (31,032)                           -


Equity dividends paid                                                       (8,501)                     (7,639)


Cash (outflow) / inflow before financing                                    (2,640)                     14,233

Financing
Issue of ordinary share capital                                1,471                       1,122
New loans                                                     27,945                           -
Repayment of borrowings                                       (6,000)                     (8,500)
Capital element of hire purchase payments                     (6,727)                     (7,213)
                                                                             16,689                    (14,591)

Increase / (decrease) in cash in the year                                    14,049                       (358)





NOTES



1.                   Segment information


                                                                                2002                   2001
                                                                                £000                   £000

Group turnover by geographical origin was as follows:

United Kingdom                                                               176,692                151,573
Ireland                                                                        8,023                  7,416
Netherlands and Belgium                                                       16,012                 15,659
Germany, Switzerland and Austria                                              14,191                 13,650
Others                                                                         3,830                  4,191
                                                                             218,748                192,489



Group turnover and operating profit before goodwill amortisation, impairment and
exceptional operating costs by class of business was as follows:


                                                Turnover                Operating profit before
                                                                         goodwill amortisation,
                                                                      impairment and  exceptional
                                                                            operating costs
                                                2002             2001              2002              2001
                                                £000             £000              £000              £000


Camping holidays                             109,194          103,691            18,963            17,833
Hotel breaks                                  76,941           57,768             7,805             5,466
Adventure holidays                            32,613           31,030             2,414             3,375
                                             218,748          192,489            29,182            26,674



2.                  Dividends paid and proposed on equity dividends


                                                                                         2002              2001
                                                                                         £000              £000

Under provision in respect of final dividend                                               43                13
Interim dividend paid of 5.9p per ordinary share (2001 - 5.4p)                          2,768             2,497
Final dividend proposed of 14.1p per ordinary share (2001 -12.6p)                       6,627             5,833
Dividends paid and proposed in respect of investment in own shares                       (143)                -
                                                                                        9,295             8,343



If approved by shareholders, the proposed final ordinary dividend will be paid
on 21 April 2003 to those ordinary shareholders on the register on 21 March 2003
and will absorb £6,520,000.



3.                  Reconciliation of operating profit to operating cash flow


                                                                                         2002              2001
                                                                                         £000              £000
                                                                                                        

Operating profit                                                                       26,154            24,508
Depreciation charges and amortisation and impairment of goodwill                       16,198            13,397
Non-cash fair value adjustment to goodwill                                                  -              (550)
Increase in debtors                                                                    (1,609)             (414)
Increase in creditors                                                                  13,275             2,743


Net cash inflow from operating activities                                              54,018            39,684




4.                  Reconciliation of net debt


                                                                                         2002              2001
                                                                                         £000              £000


Increase / (decrease) in cash in the year                                              14,049              (358)
Cash (inflow) / outflow from (increase) / decrease in debt and lease
financing                                                                             (15,218)           15,713
Change in net debt resulting from cash flows                                           (1,169)           15,355
New hire purchase contracts                                                            (6,161)           (8,217)
Net debt at beginning of year                                                         (25,065)          (32,203)


Net debt at end of year                                                               (32,395)          (25,065)




5.                  Non-statutory accounts



The results set out in this announcement are non-statutory accounts within the
meaning of Section 240 of the Companies Act 1985.  The results for the year
ended 30 September 2002 are extracts from the 2002 Group accounts which, if
adopted by the members in General Meeting on 11 February 2003 will be filed with
the Registrar of Companies.  These have been audited and reported upon without
qualification.



The results for the year ended 30 September 2001 are extracts from the 2001
Group statutory accounts, as filed with the Registrar of Companies. These were
audited and reported upon without qualification.




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