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.
UK 100