Interim Management Statement

RNS Number : 3740B

Holidaybreak PLC

17 February 2011

 



17 February 2011: For immediate release

HOLIDAYBREAK PLC

Interim Management Statement

Holidaybreak, the education and activity travel group, today releases its interim management statement for the period 1 October 2010 to 12 February 2011.

Commenting, Martin Davies, Chief Executive, said: 

"Overall, the Group has performed creditably. Sales intake is currently 3% down compared with last year as we experience a trend towards later bookings in each of our businesses. The Group continues to display strong sales visibility with 61% of target Group revenue already booked for the year and we expect to perform in line with management expectations for the year ending 30 September 2011.

I am excited about the growth plans for our new investment, Meininger, and the potential to expand our educational offering to new markets as we look to become the leading educational travel provider in Europe."

Summary

Overall, Group sales intake is down 3% compared with last year.

At this stage, with 61% of target Group revenue already booked, we anticipate performing in line with management expectations for the year ending 30 September 2011.

Divisional performance

Education & Adventure

The Education & Adventure Division accounted for 48% of 2010 Group revenue. We have already achieved 77% of target bookings for 2011 and 12% for 2012. Sales intake for the division is currently level with last year reflecting a slowdown in adventure. We remain confident of delivering our expectations for this division through effective yield management.

In education, PGL UK outdoor education centres and study tours are trading in line with last year with a noticeable trend towards later bookings from schools. To date, the UK centres are 96% booked for 2010/11. Our newest centre, Liddington, continues to perform strongly with a 100% re-booking rate from schools who visited in 2010. For this season, 200 additional beds have been added at Liddington to bring capacity to 600. This has been offset by marginal capacity reductions at smaller rented sites to maximise yields across our portfolio of owned centres.

The adventure businesses are trading satisfactorily, although the closure of UK and Dutch airports due to snow in December and the recent civil unrest in Egypt has negatively impacted performance. We have cancelled all February departures to the affected areas of Egypt with some customers re-booking to alternative destinations. Although Egypt accounted for approximately 6% of adventure's revenue in 2010, it represented 1% of Group revenue.  

 The acquisition of a 50% stake in Meininger, a leading German-based school tour accommodation group, was completed on 16 December 2010. Sales intake for the current financial year is 25% ahead of last year. The strong performance is driven by good like-for-like trading together with successful site openings in 2010. Management are targeting an additional four sites this year in Germany and Austria which will bring the portfolio to a total of 14.

Hotel Breaks

Hotel Breaks accounted for 29% of 2010 Group revenue. Sales intake for the division is currently 9% below last year. The division's performance was adversely affected by the weather conditions in December and also by the loss at Superbreak of airport hotel contracts with large retail travel agents, although this is a low margin product. Excluding these airport hotel contracts, the underlying trend shows sales intake currently at 6% below last year.

We continue to focus on London, our key sales market, and packaging competitive hotel, rail and theatre deals. In particular, we expect the Royal Wedding and attractive new shows, including Wizard of Oz and Shrek, to boost demand into London this year. However, given the difficult trading environment, we continue to manage the business tightly with a focus on reducing costs.

Camping

Camping accounted for 23% of 2010 Group revenue. Sales intake is currently 4% below last year's level on 3% lower capacity for the season. Approximately 58% of target sales are booked (compared to 62% last year), reflecting an increasingly late booking market.

We remain focused on maximising occupancy and yields. Overall, sales are in line with expectations with a strong start from Germany and Ireland offsetting slower trading to date in the UK and the Netherlands.  

Financial position

Except for the completion of the acquisition of a stake in Meininger on 16 December 2010, there has been no significant change in the Group's financial position since the full year results statement in November 2010. The normal working capital cycle of the Group's businesses is unchanged.

Financial calendar

Holidaybreak's Annual General Meeting will be held at 11:30am on Wednesday 2 March 2011 at the Lowry, Pier 8, Salford Quays, Manchester M50 3AZ.

The Company expects to announce the Interim Results for the six months ending 31 March 2011 on Tuesday 24 May 2011.

Enquiries:

Martin Davies / Neil Bright                                           Holidaybreak   [phone]

Catherine Hicks / Craig Breheny / Oliver Hughes      Brunswick        [phone]

Note to Editors

1.   Holidaybreak (HBR.L) is an education and activity travel group listed on the London Stock Exchange. The Group's businesses have market leading positions in the UK and other major European markets, organising educational and activity trips, worldwide exploratory trips, outdoor family holidays and short breaks. For more information, please go to www.holidaybreak.co.uk.

2.   This information in this release is based on management information.

3.   Certain statements in this announcement are forward-looking statements. Such statements are based on current expectations and by their nature are subject to a number of risks and uncertainties that could cause actual results and performance to differ materially from any expected future results or performance expressed or implied by the forward-looking statement. These forward-looking statements are made only as at the date of this announcement. Except as required by law, Holidaybreak plc has no responsibility or obligation to update publicly or revise any of the forward-looking statements contained herein.

 

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