Final Results

Holidaybreak PLC 01 December 2005 1 December 2005: For immediate release HOLIDAYBREAK PLC Results for the year ended 30 September 2005 Record headline profit before tax* performance driven by international growth. Holidaybreak, the European specialist holiday group, today announces preliminary results for the year ended 30 September 2005. Financial highlights 2005 2004 £m £m Group turnover 303.0 281.6 Operating profit* 35.8 31.4 Operating margins* 11.8% 11.1% Headline profit before tax* 32.0 28.0 Statutory profit before tax 19.4 17.4 Headline EPS* 48.8p 44.0p Free cash flow** 38.1 17.0 Net debt 22.9 12.5 Dividend per share 26.6p 24.2p * Before goodwill amortisation £3.9m (2004: £2.7m) and impairment £8.7m (2004: £5.3m) and exceptional costs in 2004 only (£2.6m). ** Free cash flow is operating cash flow after capital expenditure (£8.6m (2004: £11.0m)) net of disposals (£6.2m (2004: £4.3m)) and after interest and tax payments (£11.4m (2004: £11.6m)). Summary • This represents the Group's best ever performance, in terms of headline profit before tax* and free cash flow**. • Holidaybreak's businesses sold 3.0m holidays (2004: 2.3m) in the year. They are market leaders and enjoy industry-leading margins. • The diversity of Holidaybreak's businesses and its flexible cost structure helped deliver an excellent performance overall. There was no material impact on Group financial performance by the terrorist attacks in London and other events, such as the tsunami and bombing in Egypt. • 2005 sales up 8% at £303.0m (Hotel Breaks: +5%; Adventure Travel: +67%; Camping: -8%). Hotel Breaks and Adventure Travel Divisions now account for two-thirds of the Group's sales (total transaction values) on an annualised basis. • Bookit and Djoser, the Dutch businesses acquired in December 2004 and January 2005 respectively, have performed well, ahead of management expectations. Integration of the newly acquired businesses has gone smoothly. They were both earnings enhancing in the year. 22% of revenues now come from the Benelux area. This is expected to grow to approximately 30% in the current year. • The Camping Division has delivered cash at good margins. Capacity will be reduced again in 2006, this time by around 16%, which has resulted in the remaining Eurosites goodwill of £8.7m being impaired in the year. • Current trading is in line with our expectations. Group sales to date -3% (Hotel Breaks currently -4%; Adventure Travel +9%; Camping -12%). The after effects of the London bombings continue to dampen the London hotels' short-breaks business. The Board believes that the financial and trading prospects of the Group for the current year remain good. Once again, the Group expects to deliver industry-leading margins and generate strong cash returns. Carl Michel, Chief Executive, said: "These results represent an excellent performance in what has been an eventful year in our markets. I have been with Holidaybreak for three months now and I am pleased with what I have found. This is a great business with margins most other travel companies simply cannot match. The Group has the financial strength to build on changing market trends and we will use this to grow organically and by acquisition. In particular, we intend to pursue selected international growth opportunities in attractive markets which have the potential to deliver good financial returns." "Current trading is in line with our expectations. We are pleased with performance in the UK and the Netherlands although the London short-breaks market remains subdued. The Group is confident of achieving another satisfactory performance." Enquiries: Carl Michel / Bob Baddeley Holidaybreak 1 December +44 (0) 20 7404 5959 Thereafter +44 (0) 1606 787100 James Hogan / Craig Breheny / Lucie Anne Brailsford Brunswick +44 (0) 20 7404 5959 Note to Editors Holidaybreak (HBR.L) is listed on the London Stock Exchange. The European specialist holiday group sold 3.0m (2004: 2.3m) holidays in the year ended 30 September 2005. Holidaybreak has three operating divisions: Hotel Breaks, Adventure Travel and Camping. Each is a market leader in its respective specialist sector of the European holiday industry, has multi-channel distribution and is recognised for providing high standards of product and service quality. In December 2004, Holidaybreak announced the acquisition of two market leading Dutch holiday businesses: BRC, the on-line intermediary for short-stay leisure hotel breaks, and Djoser, the market leading 'soft adventure' specialist. For more information on the Group, please go to www.holidaybreak.co.uk. CHAIRMAN'S STATEMENT Introduction After a year of considerable change, Holidaybreak is now clearly positioned as a growing European specialist holiday group. In the year to 30 September 2005, we sold 3.0m holidays (2004: 2.3m), increased headline profits* and generated £38.1m of free cash flow**. We also made two successful acquisitions in the Netherlands. I am delighted to report that this represents the Group's best ever performance, in terms of headline profit before tax* and free cash flow**. Once again our employees have displayed commitment, enthusiasm and skill in all parts of the business. I thank them for all they have done in 2005. We have the strength of management, commitment and financial resources to be even more successful in the years to come. The executive management is concentrating on margin performance, good return on investment and the generation of cash. The Board remains focused on the allocation of capital, the management of risk and the performance of the executive management in the interests of the Company and its shareholders. Group results For the year ended 30 September 2005, pre-tax profits (before goodwill amortisation and impairment) were £32.0m (2004: £28.0m) on turnover of £303.0m (2004: £281.6m). Headline earnings per share* were 48.8p (2004: 44.0p). Operating profit* was £35.8m (£31.4m). On a like-for-like basis, excluding the impact of acquisitions, existing activities made an operating profit* of £31.6m. The new acquisitions, Bookit and Djoser, both announced in December 2004, contributed combined operating profits* of £4.2m. All Holidaybreak's operations generated substantial cash. Operating cash inflow was £52.0m, (2004: £46.3m). Net debt at 30 September 2005 was £22.9m (2004: £12.5m). The acquisitions of Bookit and Djoser, for a combined consideration of £39.6m, were financed from cash flow and new borrowings. Capital expenditure, net of disposals, was £2.4m (2004: £13.5m). Dividend The Board is recommending a final dividend of 19.35p (2004: 17.6p), payable on 25 April 2006, to shareholders on the register on 31 March 2006, making a total of 26.6p (2004: 24.2p) for the year. The 10% increase in the annual dividend reflects the Board's confidence in future prospects. The Group is financially strong and has a clear strategy to grow, both organically and by acquisition, adapting to and exploiting the rapidly changing market place. The Board intends to continue to pay ordinary dividends that are appropriate in light of the growth prospects and the underlying performance of the Group. Acquisitions Holidaybreak increased its presence in the growing leisure break and 'soft adventure' sectors and also in European travel markets with the acquisition in December 2004, of Bookit, an on-line intermediary for short-stay holidays in the Netherlands, and the acquisition in January 2005 of Djoser, the leading Dutch adventure holiday operator. The combined consideration for the two acquisitions was £39.6m. Djoser and Bookit enjoy high levels of consumer recognition in the Netherlands and are market leaders in their sectors. Both companies have experienced and committed management teams who are staying with the businesses. Integration of the newly acquired businesses has gone smoothly. They are both performing well and ahead of management expectations. Both were earnings enhancing* in the year. Management and Board changes Carl Michel joined Holidaybreak as its new Chief Executive on 5 September. He succeeded Richard Atkinson, who retired after 30 years with the Group. Carl, 42, has extensive management experience in the international travel sector and has worked for a range of companies, including McKinsey, British Airways, Deutsche BA (where he was CEO) and Opodo. I am delighted that Carl joined Holidaybreak. He is a well-known, senior executive in the travel industry, with outstanding strategic skills and strong European credentials. I believe that he has the capabilities to take Holidaybreak through its next phase of development. At the same time, the departure of Richard Atkinson after 30 years with the business was a significant moment for us. Richard began in the business in 1975, which was then providing holidays for less than 700 families. Holidaybreak now sells 3 million holidays annually. We have three profitable, cash generative divisions, attractive margin performance and good trading results. Richard can be justifiably proud of all this and he retired with our immense gratitude and good wishes. James Greenbury, 44, joined the Group as a non-executive director with effect from 1 January 2005. With his strategic skills and his experience of the service sector, he has proved a valuable addition to the team as Holidaybreak seeks to grow by investment in its current businesses and by acquisition. Clive McLintock, retired as a non-executive director on 31 December 2004. Clive made a strong and valuable contribution during his time on the Board and I thank him for all he did for the company. Outlook Current trading is in line with our expectations. We are pleased with performance in the UK and the Netherlands although the London short-breaks market remains subdued. The Group is confident of achieving another satisfactory performance. The Board believes that the financial and trading prospects of the Group for the current year are good. Once again, the Group expects to deliver industry-leading margins, generate strong cash returns and exploit market opportunities. Robert Ayling Chairman * Before goodwill amortisation £3.9m (2004: £2.7m) and impairment £8.7m (2004: £5.3m) and exceptional costs in 2004 only (£2.6m). ** Free cash flow is operating cash flow after capital expenditure (£8.6m (2004: £11.0m)) net of disposals (£6.2m (2004: £4.3m)) and after interest and tax payments (£11.4m (2004: £11.6m)). CHIEF EXECUTIVE'S REVIEW Introduction Holidaybreak's results for 2005 demonstrate both the flexibility and resilience of the Group in a rapidly changing market place. This is an encouraging performance in what has been an eventful year. I have been with Holidaybreak for three months now and I am pleased with what I have found. This is a great business with margins most other travel companies simply cannot match. The enthusiasm and dedication of the staff is impressive and my predecessor, Richard Atkinson, handed over a Group well placed to grow. Hotel Breaks Hotel Breaks is the largest division in the Group, selling 2.4m holidays in 2005 (2004: 1.7m). We provide domestic and overseas short-break holidays primarily for UK and Dutch consumers. Despite the London bombings in July, the division enjoyed a robust performance with operating profit* up 22% to £17.7m (2004: £14.5m). For the UK businesses, operating profit* increased by 3% to £14.9m (2004: £14.5m) on turnover that was flat at £120.9m. The results were dampened by the after effects of the London bombings in July. Overall divisional operating margins* were up from 12.0% last year to 14.0% primarily as a result of the Bookit acquisition. Bookit records commissions receivable rather than total transaction value of sales. The division continues to be cash generative with limited capital expenditure and very high return on capital employed. In 2005, it generated £14.9m free cash flow** (2004: £16.9m). The revenue mix of the UK business has shifted to reflect ongoing business development, with hotel breaks in Europe now at 13% of revenue, up from 7.0% in 2004. By contrast, the London hotel leisure market has been softer and is only slowly recovering on the back of destination marketing campaigns and a number of new theatre shows including Sinatra, Billy Elliot and Blue Man Group. Bookit, the Dutch online hotel and self-catering reservations business, continues to make excellent progress. The business consists of three main brands. Weekendjeweg.nl, the core brand, offers hotel accommodation for two night weekend stays primarily in the Netherlands, Belgium and Germany. Nachtjeweg.nl provides overnight accommodation while Bungalows.nl, a successful initiative in only its second year, offers self-catering accommodation in holiday parks. This year, Bookit launched a new brand Hotelletje.nl offering small family-run hotels. Bookit is the third largest tour operator in the Netherlands by number of customers. As expected, Hotel Breaks' overall sales intake for 2005/06 is currently about 4% down on same period in 2004/05, mainly reflecting weakness in London since July. However, the extremely flexible cost base of the Hotel Breaks Division (room allocations are on a non-committed basis) means management is confident that it will deliver a satisfactory financial performance in the current year. Adventure Travel The Adventure Travel Division consists of three businesses: Explore, Djoser and RegalDive. We sold 60,300 adventure holidays in 2005 (2004: 41,000). The division has had another impressive year. Turnover was up 67% to £62.6m (2004: £37.4m) and operating profit* increased by 63% to £5.1m (2004: £3.2m). The operating margin* was 8.2% (2004: 8.4%) and £12.7m of free cash flow** was generated (2004: £2.8m). The acquisition of Djoser, the Dutch market leader in adventure travel, increased the size of the Adventure Travel Division by approximately 60%. Djoser provides escorted tours for Dutch and Belgian consumers to eighty-five countries and is the largest adventure holiday operator in mainland Europe. Explore is the UK market leader in the 'soft adventure' sector. The Explore programmes, which are targeted at specific groups of consumers, have performed strongly during the year; most notably Explore Family Adventures grew by 100% and Explore Cycle by 70%. New tours and destinations have been added to expand our core product offering. We continue to benefit from the growing aspirations of travellers to be bolder and push their own limits. RegalDive has maintained a solid trading performance and remained on budget, despite the bombing in Sharm El Sheikh in Egypt. The business is successfully expanding outside of Red Sea destinations. Overall 2006 sales intake for the Adventure Travel Division is currently 9% higher than 2005. Camping The Camping Division sold 523,000 European camping and mobile-home holidays in 2005 (2004: 570,000). Our main brands, Eurocamp and Keycamp, remain sector leaders and are sold in numerous European markets: the UK, Eire, the Netherlands, Belgium, Germany, Denmark, Switzerland, Austria and Poland. Turnover in Camping was £113.7m (2004: £123.2m) and operating profit* declined by 5.4% to £13.0m (2004: £13.7m). Operating profit* margin improved to 11.4% (2004: 11.1%) and remains well ahead of industry average. The division generated £21.9m of free cash flow** (2004: £8.9m). The trend towards later bookings by customers continues. The division remains a relatively high fixed cost business. It is concentrating on managing high season yields more successfully by holding prices and resisting discounting in pursuit of earlier bookings. Capacity cuts in areas of weaker demand have supported this revenue management strategy. Overall accommodation capacity (tents and mobile-homes) in 2005 was reduced by 12% and in 2005/06 we intend to reduce it by 16%. Our marketing is focused on widening the appeal as well as capitalising on the shift from ferries to low cost airlines. Whilst we are at a fairly early stage in the booking season, to date current 2006 sales intake for the Camping Division is 12% lower than 2005, reflecting the planned lower capacity on sale. We are making good progress in selling low-season holidays. Strategy Our focus remains on our cash generative businesses, all of which are strongly placed in the markets they occupy. We command, by virtue of our market leadership and the strength of relationships with suppliers and customers alike, industry-leading operating margins* of over 10% at the Group level. We continue to increase our presence in the wider continental European market. During 2005 we have successfully acquired and integrated two businesses, Bookit and Djoser, in the Netherlands. The impact of these is substantial; we anticipate that for the year ahead the share of revenues from the Benelux area will be approximately 30% on a total transaction value basis versus only 12% in 2004. The Camping Division's share of annualised total transactions values has fallen from 44% last year to 34% this year. We are also becoming more of an online business. While we continue to base our sales on a multi-channel distribution approach to reflect the different ways in which consumers wish to access our products, I am particularly pleased that the internet is growing strongly in all divisions. Since taking on the role of Chief Executive in September, I have been enormously impressed by the determination, relationship-building and commercial acumen of our managers. Our financial strength gives us the opportunity to consider a range of options to strengthen our specialist portfolio. We need to consolidate our market leadership in 'soft adventure' tours and grow the sector. We will be investing more in our online capability in all divisions. While we grow your company, we are also mindful of our balance sheet structure. We continue to review the investment needs of the group, targeting an appropriate return on invested capital. Going forward, I am keen to exploit more opportunities for sharing best practice across the Group and, where appropriate, to identify sensible acquisitions that add to our growth prospects, our online presence, our geographical spread and that have the potential to deliver good financial returns. All this will be done while maintaining our focus on our existing operations to continue their strong cash generation and industry-leading margins. Carl Michel Chief Executive * Before goodwill amortisation £3.9m (2004: £2.7m) and impairment £8.7m (2004: £5.3m) and exceptional costs in 2004 only (£2.6m). ** Free cash flow is operating cash flow after capital expenditure (£8.6m (2004: £11.0m)) net of disposals (£6.2m (2004: £4.3m)) and after interest and tax payments (£11.4m (2004: £11.6m)). FINANCE DIRECTOR'S REVIEW In the year to 30 September 2005 Holidaybreak plc increased headline profits before tax* to £32.0m (2004: £28.0m) and invested £39.0m (net of £0.6m cash acquired) in acquiring Bookit and Djoser. Despite this expenditure, net debt increased by only £10.4m to £22.9m as we continued to benefit from substantial cash generation in all businesses. Group Profit and Loss Account Turnover in 2005 was up 7.6% on 2004 at £303.0m (2004: £281.6m). Operating profit before goodwill amortisation (£3.9m) and impairment (£8.7m) was 14.1% higher than 2004 at £35.8m. The acquired businesses contributed turnover of £25.0m and operating profit* of £4.2m. On a like-for-like basis, excluding the acquisitions, turnover was 1% below 2004 at £277.9m and operating profit* marginally higher at £31.6m (2004: £31.4m). During the year, we sold two freehold properties for £3.0m, realising a profit of £0.6m. Keycamp had previously relocated from freehold premises in Sutton, Surrey and Explore Worldwide will be relocating to new freehold premises at a cost of £3.5m at the end of 2005. The Group's net interest charge increased from £3.3m in 2004 to £4.4m. Interest cover* decreased from 9.4 times in 2004 to 9.3 times in 2005. The Group incurred costs of £0.5m in respect of renegotiating and increasing the existing borrowing facilities to finance the acquisitions. The overall tax charge, including full provision for deferred tax, was £7.6m and the tax rate of 38.9% was higher than 2004 (28.8%). This increase is due to goodwill impairment, referred to below, being substantially non-deductible for UK corporate tax. The headline tax rate, before goodwill amortisation and impairment was 28% (2004: 26.7%). Headline earnings per share* were 48.8p (2004: 44.0p). The proposed final dividend of 19.35p per ordinary share represents an increase of 10% over 2004 and gives a total dividend for the year of 26.6p per ordinary share (2004: 24.2p). Dividend cover* is 1.8 times. Goodwill Impairment The Board has reviewed the carrying value of goodwill arising from the acquisition of Eurosites in 2002 and, as a result, an impairment charge of £8.7m has been made in these accounts. All the goodwill relating to Eurosites has now been amortised or impaired. Capital Expenditure Capital expenditure (net of receipts from disposals) in the year to 30 September 2005 was £2.4m (2004: £13.5m). Mobile-homes (£4.3m before disposals) accounted for the bulk of the expenditure. Accommodation capacity will again be reduced by a further 16% in 2006 and hence we expect a further reduction in the level of the Camping Division's net capital expenditure in the year to 30 September 2006. Expenditure on Explore Worldwide's new freehold property will be £3.5m. Overall net capital expenditure for the Group for 2006 will be approximately £5.5m net of mobile-home disposals of £3.6m. The Group's depreciation policy is to write down the cost of mobile-homes to an estimated residual value over their projected economic life. Disposal proceeds of £3.1m in respect of mobile-homes sold at the end of their useful life resulted in a loss of £0.2m. In order to extend their economic life, we continue to source mobile-homes of higher specification and to refurbish existing units. Cash Flow The Group's net borrowings at 30 September 2005 were £22.9m, compared to £12.5m in 2004. Cash flow from operating activities was £52.0m, another strong performance. Available bank facilities (£140.0m as at 30 September 2005) are sufficient to meet the working capital, investment and bonding requirements of the Group. To finance the acquisitions, the Group's committed five year borrowing facilities were increased by £36.7m to £140m. Due to the highly seasonal nature of Camping Division's cash flow, headroom under these facilities was £24.4m at the end of April 2005 when borrowings were at their maximum. In addition to these facilities we have hire purchase agreements with various UK financial institutions to finance the purchase of mobile-homes. 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 24% of total Group revenues. Currency outflows account for 32% of all Group costs. The Group's policy is to hedge anticipated currency exposures and we have entered into forward contracts in respect of 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. At 30 September 2005, the proportion of the Group's gross borrowings at fixed and capped rates was 52% and the average rate was 5.4%. The gross cash position was fully floating. International Financial Reporting Standards We will be required to adopt International Financial Reporting Standards (IFRS) when preparing Group accounts for the year ended 30 September 2006. In preparation for this, all IFRS requirements have been reviewed in detail to assess their likely impact on our reported results and the actions required to collect the necessary data. Data has been collected on a dual basis (UK GAAP and IFRS) during 2004/5 to enable the restating of the opening "transition" balance sheet at 1st October 2004 and the results for the year ended 30th September 2005 under IFRS. We will be issuing an update to the market before 31 March 2006. It is not possible to assess with certainty all the effects of the transition to IFRS. However, we believe that the major areas of impact on our retained profit and shareholders' funds will be: * Share-based payments, whereby the income statement will include an annual charge based on the fair value of awards made to employees. A new Long Term Incentive Plan is proposed and details will be set out in a circular to shareholders prior to the AGM in March 2006. It has not yet been approved by shareholders and shares have yet to be issued under the scheme. The impact on results will be monitored as shares are issued and options exercised under existing share option schemes. * Capitalised goodwill, whereby the carrying value will be subject to annual impairment reviews, with no amortisation charge. The charge for goodwill amortisation and impairment in 2005 was £12.6m. * Open forward foreign exchange contracts which will be valued at year-end market rates, with any gains or losses charged to the income statement. * Proposed dividends will be recognised in the accounting period in which they are declared. Accordingly, the Group will reverse the accrual for its final dividend (£9.2m) and report it in the consolidated IFRS accounts for 2006. Bob Baddeley Finance Director * Headline profits, headline EPS, interest and dividend cover are stated before goodwill amortisation and impairment of £12.6m. Holidaybreak plc - Consolidated profit and loss account Year ended 30 September 2005 2005 2004 Total Existing Continuing Notes operations Acquisitions Operations £'000 £'000 £'000 £'000 Turnover 1 277,949 25,034 302,983 281,557 Cost of sales (208,968) (14,226) (223,194) (209,216) __________ __________ __________ __________ Gross profit 68,981 10,808 79,789 72,341 Net operating expenses (48,545) (8,049) (56,594) (51,617) -------------- ----- -------- -------- -------- -------- Operating profit before goodwill amortisation and impairment and exceptional costs 1 31,605 4,209 35,814 31,380 Goodwill amortisation (2,431) (1,450) (3,881) (2,735) Goodwill impairment (8,738) - (8,738) (5,276) Exceptional costs - - - (2,645) -------------- ----- -------- -------- -------- -------- __________ __________ __________ __________ Operating profit 20,436 2,759 23,195 20,724 __________ __________ Profit on sale of tangible fixed assets 579 - __________ __________ Profit on ordinary activities before interest 23,774 20,724 Interest receivable 1,237 1,097 Interest payable and similar charges (5,611) (4,430) __________ __________ Profit on ordinary activities before taxation 19,400 17,391 Tax on profit on ordinary activities (7,561) (5,014) __________ __________ Profit on ordinary activities after taxation 11,839 12,377 Dividends paid and proposed 2 (12,579) (11,478) __________ __________ Retained (loss) profit for the year (740) 899 __________ __________ Earnings per ordinary share Headline earnings per ordinary share 48.8p 44.0p Basic earnings per ordinary share 25.1p 26.5p Diluted headline earnings per ordinary share 48.5p 43.7p Diluted basic earnings per ordinary share 24.9p 26.7p __________ __________ Holidaybreak plc - Consolidated statement of total recognised gains and losses Year ended 30 September 2005 2005 2004 £'000 £'000 Profit for the financial year 11,839 12,377 Gain on foreign currency translation 195 108 __________ __________ Total gains and losses recognised relating to the year 12,034 12,485 __________ __________ Holidaybreak plc - Consolidated balance sheet 30 September 2005 2005 2004 £'000 £'000 Fixed assets Intangible assets 62,280 36,227 Tangible assets 62,904 70,559 Investments 15 15 __________ __________ 125,199 106,801 __________ __________ Current assets Assets held for disposal 3,283 3,526 Debtors 23,737 20,833 Cash at bank and in hand 50,375 31,363 __________ __________ 77,395 55,722 __________ __________ Creditors: amounts falling due within one year (146,562) (90,769) __________ __________ Net current liabilities (69,167) (35,047) __________ __________ Total assets less current liabilities 56,032 71,754 Creditors: amounts falling due after more than one year (11,588) (29,136) Provisions for liabilities and charges (6,072) (6,122) __________ __________ Net assets 38,372 36,496 __________ __________ ============ ============ Capital and reserves Called up share capital 2,416 2,381 Share premium account 36,879 34,427 Other reserves (3,775) (3,709) Profit and loss account 2,852 3,397 __________ __________ Equity shareholders' funds 38,372 36,496 __________ __________ ============ ============ Holidaybreak plc - Consolidated cash flow statement Year ended 30 September 2005 2005 2004 £'000 £'000 £'000 £'000 Net cash inflow from operating activities 51,986 46,274 (note 3) Returns on investments and servicing of finance Interest and other 1,369 1,334 investment income received Interest paid (4,610) (4,264) Interest element of hire (1,142) (1,103) purchase payments __________ __________ (4,383) (4,033) Taxation UK corporation tax paid (5,043) (6,580) Overseas tax paid (1,980) (961) __________ __________ (7,023) (7,541) Capital expenditure Purchase of own shares (66) (738) Payments to acquire tangible (8,589) (11,040) fixed assets Receipts from sale of 6,178 4,300 tangible fixed assets __________ __________ (2,477) (7,478) Acquisitions and disposals Purchase of businesses and subsidiary (39,030) - undertakings (net of cash acquired) Equity dividends paid (11,727) (10,674) __________ __________ Cash (outflow) inflow before (12,654) 16,548 financing Financing Issue of ordinary share 2,295 1,005 capital New loans 44,830 - Repayment of borrowings (12,495) (11,862) Capital element of hire (7,156) (7,767) purchase payments __________ __________ 27,474 (18,624) __________ __________ Increase (decrease) in cash 14,820 (2,076) in the year __________ __________ ============ ============ NOTES 1. Segment information 2005 2004 £'000 £'000 ------------------------------- --------- --------- Group turnover by geographical origin was as follows: United Kingdom 230,996 230,036 Ireland 7,394 8,582 Netherlands and Belgium 46,216 22,245 Germany, Switzerland and Austria 12,524 15,586 Others 5,853 5,108 __________ __________ 302,983 281,557 __________ __________ === ============ ============ Group turnover and operating profit before goodwill amortisation and impairment and exceptional operating costs by class of business was as follows: Turnover Operating profit before goodwill amortisation and impairment and exceptional costs 2005 2004 2005 2004 £'000 £'000 £'000 £'000 ----------- --------- --------- --------- --------- Hotel 126,659 120,895 17,680 14,487 Breaks Adventure Travel 62,581 37,417 5,138 3,160 Camping 113,743 123,245 12,996 13,733 __________ __________ __________ __________ 302,983 281,557 35,814 31,380 __________ __________ __________ __________ ============ ============ ============ ============ 2. Dividends paid and proposed on equity dividends 2005 2004 £'000 £'000 --------- --------- (Over) under provision in respect of final dividend (27) 27 Interim dividend paid of 7.25p per ordinary share (2004 - 6.6p) 3,444 3,140 Final dividend proposed of 19.35p per ordinary share (2004 - 17.6p) 9,233 8,381 Dividends paid and proposed in respect of investment in own shares (71) (70) __________ __________ 12,579 11,478 __________ __________ ============ ============ If approved by shareholders, the proposed final ordinary dividend will be paid on 25 April 2006 to those ordinary shareholders on the register on 31 March 2006 and will absorb £9,233,000. 3. Reconciliation of operating profit to operating cash flow 2005 2004 £'000 £'000 -------------------------------- --------- --------- Operating profit 23,195 20,724 Depreciation charges and amortisation and impairment of goodwill 26,269 23,144 (Increase) decrease in debtors (1,579) 1,144 Increase in creditors 4,101 1,262 __________ __________ Net cash inflow from operating activities 51,986 46,274 __________ __________ ============ ============ 4. Reconciliation of net debt 2005 2004 £'000 £'000 ----------------------------- --------- -------- Increase (decrease) in cash in the year 14,820 (2,076) Cash (inflow) outflow from (increase) decrease in debt and lease financing (25,179) 19,629 __________ __________ Change in net debt resulting from cash flows (10,359) 17,553 New hire purchase contracts - (6,734) Net debt at beginning of year (12,534) (23,353) __________ __________ Net debt at end of year (22,893) (12,534) __________ __________ ============ ============ 5. Non-statutory accounts The financial information set out above does not constitute the Company's statutory accounts for the years ended 30 September 2005 or 2004, but is derived from these accounts. Statutory accounts for 2004 have been delivered to the Registrar of Companies and those for 2005 will be delivered following the Company's Annual General Meeting. The auditors have reported on those accounts; their reports were unqualified and did not contain a statement under section 237 (2) or (3) of the Companies Act 1985. The preliminary announcement has been prepared in accordance with applicable United Kingdom accounting standards under the historical cost convention. The principal accounting policies of the Group have remained unchanged from those set out in the Group's 2004 Annual Report and Financial Statements. This information is provided by RNS The company news service from the London Stock Exchange

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