Interim Results
Holidaybreak PLC
21 May 2001
For Immediate Release: 21 May 2001
Holidaybreak plc
ANNOUNCES INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 MARCH 2001
Holidaybreak plc ('HBR'), the provider of specialist holidays, today announces
its interim results for the six months ended 31 March 2001.
Highlights
* Group remains firmly on course for yet another successful year
* Due to seasonal nature of largest division - camping - first half
results show an overall loss of £6.8m - in line with expectations
(2000: (£ 7.8m))
- Camping division: (£8.3m) (2000: (£8.1m))
- Hotel Breaks: profit £2.0m (2000: £1.6m)
- Adventure holiday: profit £1.2m (no comparison available)
* Camping Division, consists of pre-sited mobile homes and tents on
sites across Europe:
- approx. 90% of anticipated bookings and 93% of expected sales now
received
- current bookings are 5% up on 2000 equivalents - another
successful year
* Hotel Breaks, which sells short breaks within the UK:
- sales intake revenues are 24% ahead of 2000 with approximately 70%
of the expected final figure now received
* Adventure holiday - formed in 2000 following the acquisitions of Regal
Holidays and Explore Worldwide:
- both acquisitions made in 2000 progressing satisfactorily
- bookings for the year are 13% up on 2000 equivalents
* Half year dividend of 5.4p per share - increase of 12.5% on the 2000 figure
Commenting on the results, Angus Crichton-Miller Chairman of Holidaybreak,
said:
'Overall Holidaybreak has a consistent record of earnings growth and we expect
this record to be extended in 2001. All three of our businesses have a
positive outlook for both the current year and the longer term. Our strategy
of concentrating on high quality, market leading businesses in profitable
specialist sectors, whilst avoiding the highly competitive and at times
volatile mass market, is once again proving its worth. The Group has
excellent prospects and anticipates a continuation of the profits and dividend
growth consistently achieved in recent years.'
Chairman's Statement
Holidaybreak plc remains on course for another successful year with all its
businesses trading well and further increases in earnings and dividends
anticipated. It is entirely normal for our first half results to show a loss
due to the very seasonal nature of our largest trading division. In the six
month period to 31 March 2001 this loss before tax and goodwill amortisation
was £6.7m. This compares with a deficit of £7.8m for the equivalent period in
2000.
The Group's spread of businesses has become progressively more balanced in
recent years, particularly since last year's acquisition of Explore Worldwide
and the scuba diving specialist Regal Holidays to form our Adventure Holidays
division. Nevertheless, for Camping, which remains the largest business in
the Group, first half losses are inevitable, as all sales are in the second
half. In 2001, these losses were £8.3m, compared to £8.1m last year.
In contrast to Camping, both Adventure Holidays and Hotel Breaks are year
round businesses, albeit with a greater profitability in the second period.
Both achieved satisfactory first half operating profits of £1.3m and £2.0m
respectively. There is no direct comparative for Adventure as the Explore
Worldwide acquisition only took place in February of last year and the Regal
acquisition in August. The Hotel Breaks figure compares to £1.6m in 2000.
The interest charge is slightly higher than last year at £1.7m (2000: £1.5m)
as a result of the debt raised to finance acquisitions last year.
DIVIDEND
The Board has declared a half-year dividend of 5.4p per share, an increase of
12.5% on the 2000 figure. This will be payable on 20 August 2001 to
shareholders on the register on 13 July 2001.
CURRENT TRADING AND PROSPECTS
Holidaybreak has a consistent record of earnings growth and we expect this
record to be extended in 2001. All our businesses are performing well.
Camping Division
Camping has maintained the healthy booking trends which were apparent in the
New Year with both the UK and continental European markets continuing to
perform well. Peak season is largely full whilst Spring Bank Holiday week and
June have recently been selling strongly. It is important that this improved
low season trend continues if target occupancy levels are to be achieved.
Reaction to the 'foot and mouth' restrictions on countryside access in the UK
has probably been a factor in this pick-up in low season demand. With
approximately 90% of anticipated bookings, we are 5% up on 2000 equivalents.
The proportion of bookings in more profitable mobile-homes is 54% compared to
50% at this time last year.
Hotel Breaks
Hotel Breaks are having another excellent year. Sales intake revenues are 24%
ahead of 2000 for the year to date with approximately 70% of the expected
final figure now received. London breaks, which account for some 35% of
sales, have been strong throughout whilst recently coastal resorts and '
secondary' city destinations, such as York, Bath and Chester, have seen a
surge in demand. Again, from our standpoint the 'foot and mouth' restrictions
have proved beneficial. On the downside, demand for rural breaks has been
weak but these account for less than 5% of overall sales in a normal year and
have been more than offset by strength elsewhere. Sales of rail inclusive
breaks are now recovering after the problems earlier in the year. Whilst all
the distribution channels have performed well, direct and internet bookings
have been particularly strong.
Adventure Holidays
Explore Worldwide and Regal are showing encouraging progress. Bookings for
the year are 13% up on 2000 equivalents with approximately 85% of the year end
total now received. There has been some pressure on overheads but a pleasing
result, in our first full year of ownership, is still anticipated. Whilst we
continue to evaluate potential acquisition opportunities across a broad
spectrum within the travel industry, we believe that the adventure and
activity sector is likely to yield attractive opportunities.
All our businesses have a positive outlook for both the current year and the
longer term. Our strategy of concentrating on high quality, market leading
businesses in specialist sectors, whilst avoiding the highly competitive and
at times volatile mass market, is once again proving its worth. We enjoy
excellent prospects and we anticipate continuation of the profits and dividend
growth which we have consistently achieved in recent years.
Angus Crichton-Miller Chairman
_______________________________________________________________________________
For further information, please contact:
Holidaybreak plc On 21.05.01: +44 (0) 20 7466 5000
Richard Atkinson, CEO Thereafter: +44 (0) 1606 787 000
Bob Baddeley, Finance Director
Buchanan Communications Tel: +44 (0) 20 7466 5000
Tim Anderson / Nicola How
Holidaybreak plc
Consolidated profit and loss account
For the six months ended 31 March 2001
Unaudited Unaudited Audited
6 months 6 months 12 months
to to to
31 31 30
March March September
£'000 £'000 £'000
Turnover 37,177 20,721 164,518
Operating (loss) profit before goodwill (5,039) (6,282) 23,667
amortisation
Goodwill amortisation (840) (120) (865)
Operating (loss) profit (5,879) (6,402) 22,802
Net interest payable (1,658) (1,516) (2,958)
(Loss) profit on ordinary activities before (7,537) (7,918) 19,844
tax
Taxation 2,261 2,375 (5,900)
(Loss) profit on ordinary activities after (5,276) (5,543) 13,944
taxation
Ordinary dividend (2,475) (2,190) (7,725)
Retained (loss) profit for the period (7,751) (7,733) 6,219
(Loss) earnings per ordinary share
Headline (loss) earnings per ordinary share (10.5p) (13.1p) 34.0p
Basic (loss) earnings per ordinary share (11.5p) (13.1p) 32.0p
The Group has no recognised gains or losses other than the (loss) profit for
the financial period.
Notes:
1. Segment information.
Group turnover by geographic region was as follows
Unaudited Unaudited Audited
6 months to 6 months to Year ended
31 March 31 March 30 September
2001 2000 2000
£'000 £'000 £'000
United Kingdom and Ireland 36,127 20,721 130,732
Netherlands and Belgium - - 15,939
Germany, Switzerland and Austria - - 14,126
Others 1,050 - 3,721
37,177 20,721 164,518
Group turnover and profit before goodwill amortisation, interest and tax by
class of business was as follows:
Turnover Operating profit before goodwill
amortisation
Unaudited Unaudited Audited Unaudited Unaudited Audited
6 months 6 months Year 6 months to 6 months to Year ended
to to ended
31 March 31 March 30 31 March 31 March September
September
2001 2000 2000 2001 2000 2000
£'000 £'000 £'000 £'000 £'000 £'000
Camping - - 102,357 (8,301) (8,137) 17,001
holidays
Hotel Breaks 23,713 18,571 46,054 1,965 1,586 4,390
Adventure 13,464 2,150 16,107 1,297 269 2,276
holidays
37,177 20,721 164,518 (5,039) (6,282) 23,667
Holidaybreak plc
Consolidated balance sheet
As at 31 March 2001
Unaudited Unaudited Audited
6 months to 6 months to Year ended
31 March 31 March 30 September
2001 2000 2000
£'000 £'000 £'000
Fixed assets:
Intangible assets 31,913 28,856 32,753
Tangible assets 59,890 55,262 53,779
Investments 1,906 - 1,079
93,709 84,118 87,611
Current assets:
Investments held for disposal 1,106 1,016 3,463
Debtors 26,497 29,610 12,690
Cash at bank and in hand 9,034 6,843 47,803
36,637 37,649 63,956
Creditors:
Amounts falling due within one year (59,829) (60,106) (52,553)
Net current liabilities (23,192) (22,637) 11,403
Total assets less current liabilities 70,517 61,481 99,014
Creditors:
Amounts falling due after more than one (52,662) (50,470) (73,619)
year
Provision for liabilities and charges (621) (74) (621)
Net assets 17,234 10,937 24,774
Capital and reserves
Called up share capital 2,295 2,281 2,290
Retained reserves 14,939 8,656 22,484
Equity shareholders' funds 17,234 10,937 24,774
Holidaybreak plc
Consolidated cashflow statement
For the six months ended 31 March 2001
Unaudited Unaudited Audited
6 months 6 months Year
to to ended
31 March 31 March 30
September
2001 2000 2000
£'000 £'000 £'000
Net cash (outflow) inflow from operating (13,628) (10,713) 39,726
activities
Returns on investments and servicing of finance (1,658) (1,516) (2,958)
Taxation (1,716) (1,278) (5,080)
Capital expenditure and financial investment (4,277) (6,388) (5,435)
Acquisitions - (24,205) (7,843)
Equity dividends paid - - (6,569)
Cash (outflow) inflow before management of liquid (21,279) (44,100) 11,841
resources and financing
Financing (17,972) 24,763 10,319
(Decrease) increase in cash in the period (39,251) (19,337) 22,160
Notes:
1. The principal Group accounting policies have been applied
consistently throughout the current and the preceding half year and are
consistent with those set out in the 2000 Annual Report and Accounts.
2. Earnings per ordinary share are based on the weighted average
number of ordinary shares in issue of 45,851,482 (six months to 31 March 2000
- 42,305,405, year ended 30 September 2000 - 43,531,036). Headline earnings
per ordinary share are based on Group profit on ordinary activities, after
taxation, but before goodwill amortisation.
3. An interim dividend of 5.4p per ordinary share will be paid on 20
August 2001 to shareholders on the Register on 13 July 2001.
4. The profit and loss account, balance sheet and cashflow statement
in this interim report, which was approved by the Board of directors on 18 May
2001, do not amount to statutory accounts within the meaning of section 240 of
the Companies Act 1985. Statutory accounts for the year ended 30 September
2000 incorporating an unqualified audit report have been filed with the
Registrar of Companies.
5. Reconciliation of operating profit to net cash (outflow) inflow
from operating activities:
Unaudited Unaudited Audited
6 months 6 months Year ended
to to
31 March 31 March 30
September
2001 2000 2000
£'000 £'000 £'000
Operating (loss) profit (5,879) (6,402) 22,802
Depreciation charges 306 204 11,282
Goodwill amortisation 840 120 865
(Increase) decrease in debtors (11,450) (11,184) 1,971
Increase in creditors 2,555 6,549 2,806
Net cash (outflow) inflow from operating (13,628) (10,713) 39,726
activities
6. Reconciliation of net debt
Unaudited Unaudited Audited
6 months 6 months Year
to to ended
31 March 31 March 30
September
2001 2000 2000
£'000 £'000 £'000
(Decrease) increase in cash in the period (39,251) (19,337) 22,160
Cash (inflow) outflow from (increase) decrease in 18,184 (12,774) (9,759)
debt and lease financing
Movement in net debt in the period (21,067) (32,111) 12,401
New hire purchase contracts (2,967) (4,425) (10,243)
New loan notes - - (9,465)
Net debt at beginning of period (32,203) (24,896) (24,896)
Net debt at end of period (56,237) (61,432) (32,203)
7. Copies of this Interim Report are available from the registered
office of Holidaybreak plc, Hartford Manor, Greenbank Lane,
Northwich, Cheshire CW8 1HW.