Interim Results

Holidaybreak PLC
08 May 2003


For Immediate Release:                                              8 May 2003



                            HOLIDAYBREAK PLC


    ANNOUNCES INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 MARCH 2003



Holidaybreak plc ("HBR"), the provider of specialist holidays, today announces
its interim results for the six months ended 31 March 2003.



Highlights



-   Strong performance in difficult conditions



-   Increased profits for Hotel Breaks and Adventure divisions -
    encouraging recent bookings trends for Camping



-   Half year dividend increased to 6.0p per share



-        Camping Division:

     o     Booking trends see upturn in recent weeks - over 80% of target sales
           now achieved

     o     Normal interim loss - seasonal nature of business means that all 
           turnover recognised in second half

     o     Division expanded by acquisition of Eurosites in September 2002



-        Hotel Breaks:

o     Strong performance throughout period - particularly from internet sales
      and overseas breaks

o     First half sales up by 23% to £36.6m

o     Profit up 25% to £3.6m (2002: £2.9m)

o     Bookings in second half remain strong



-        Adventure Holiday:

o     Sales up 9% despite war with Iraq and SARS

o     Operating profit 9% up at £1.2m

o     Prospects good - strong summer demand for expanded European holiday range



-        Bob Ayling appointed non-executive director on 01.02.03 - succeeds
         Angus Crichton-Miller as Chairman on 01.06.03



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



"Both our year-round businesses have perform creditably in the first half of the
year. Holidaybreak remains a robust and successful company which continues to
demonstrate an ability to perform well in difficult markets."



For further information, please contact:


Richard Atkinson, CEO                               On 08.05.03:  020 7466 5000
Holidaybreak                                                       01606 787100

Tim Anderson / Nicola How
Buchanan Communications                                           020 7466 5000




                              CHAIRMAN'S STATEMENT



Holidaybreak's Interim Results show good performances by both the Hotel Breaks
and Adventure businesses. The Camping Division, whose sales all fall into the
second half, is as normal showing a first half loss.  The geopolitical and
economic climate has continued to create difficulties for the overseas holiday
sector.  Whilst Holidaybreak has not been immune to this, our own businesses are
resilient and have loyal customers and recent booking trends have been
encouraging.



In the six month period to 31 March 2003 Holidaybreak recorded a pre-tax loss on
ordinary activities of £7.2m (2002: £5.9m).  Goodwill amortisation of £1.3m and
exceptional costs of  £1.3m led to an overall loss on ordinary activities before
tax of £9.8m (2002: £6.7m). The size of our  Camping business relative to the
other two divisions and the very seasonal nature of its trading means that, as
in previous years, an overall first half loss for the Group is expected.  The
half-year loss is higher this year following the acquisition of Eurosites in
September of last year.  Post-acquisition reorganisation costs resulted in an
exceptional operating charge of £1.3m.



The interest charge is £2.1m (2002: £1.3m) and, at the half year, net debt was
£75.4m which is £32.5m higher than the 31 March 2002 figure of £42.9m.  This
reflects increased debt levels arising from the Eurosites acquisition.  It
should be noted that, at the half-year, we are at the low point in our cash flow
cycle.  Debt balances reduce rapidly in the second half as customers' final
summer holiday balances are paid.



Dividend

The Board has declared a half-year dividend of 6.0p per share (2002: 5.9p). This
will be payable on 18 August 2003 to shareholders on the register on 11 July
2003.



Camping Division

With all sales falling into the second half the interim loss for Camping was
£9.9m (2002: £8.5m).  This reflects normal marketing and overhead costs in the
October to March period which are greater this year due to the Eurosites
acquisition.  Of the total figure £1.3m relates to the acquired business.



The UK overseas summer holiday market is down and self-drive holidays to France
have also struggled to make headway as consumers have been reluctant to make
longer term holiday commitments.  Our overseas markets (primarily Holland,
Switzerland and Germany) have been similarly affected.  Capacity has been
reduced by 3% compared to 2002 and Camping Division sales to date are 9% below
last year's equivalent although over 80% of target year end sales have now been
achieved. A combination of the late booking patterns which have characterised
holiday markets this year and the attractive, peak season accommodation which we
still have available to sell, give cause for guarded optimism about the eventual
outturn for the Division.  Our overseas market sales have shown a clear
improvement in recent weeks and, since Easter, the UK has also shown improving
trends.  We were encouraged by last week's sales figures which showed a year on
year increase of 31%.  However, performance in the weeks ahead remains critical.



Hotel Breaks

First-half sales for our Hotel Breaks division rose by 23% to £36.6m (2002:
£29.6m) whilst profits rose by 25% to £3.6m (2002: £2.9m).  Demand levels have
been healthy throughout the period with particularly strong performances from
on-line internet bookings and the 'accommodation only' European programme which
has grown well despite the general malaise in the overseas holidays market.



Like for like sales intake for the year now stands at 21% above the 2002 figure.
Bookings for the second half have continued strongly and London hotel market
conditions remain favourable to us.  The acquisition in March of the Bridge UK
short-breaks business had no material impact on the first-half but will provide
a useful boost to the overall performance for the year.



Adventure Holidays

Our Adventure businesses, Explore Worldwide and diving specialist Regal
Holidays, made a very encouraging start to the year, confirming their recovery
from post-September 11th travails.  From the start of 2003, as the war with Iraq
became more certain, demand for many destinations dropped away sharply.  Having
been 22% up in sales on 2002 in the first quarter, the six month sales figure
eventually rose 9% to £15.8m (2002: £14.5m).  Operating profit for the first
half was £1.2m (2002: £1.1m).



As well as impacting on customer demand Foreign Office travel advice has, since
the New Year, necessitated the cancellation of tours to a number of countries.
These restrictions have now been extended to much of Asia with the outbreak of
the SARS virus.  Year on year sales now stand at 2% above the 2002 equivalent.
However, we still have the summer holiday period to look forward to and
anticipate strong demand for our expanded range of European holidays.  These
fall mainly into the summer months and last year accounted for 19% of turnover.
We have also worked hard to consolidate tours where demand has been weak to
ensure that load factors and profitability are maintained.



Appointment of New Chairman

Bob Ayling was appointed as a non-executive director of Holidaybreak on 1
February 2003.  As previously announced he will take over from me as Chairman on
1 June 2003. I have every confidence that his tenure as Chairman will see the
Company move forward to its next level of development.



Prospects

This is not proving an easy year for the holiday sector. General economic and
market conditions may well constrain Holidaybreak's growth to below the levels
enjoyed in recent years. However, debt levels will reduce due to strong cash
generation and, overall, we anticipate an outcome which will demonstrate the
strength of our businesses and continuing good prospects for the future.



Angus Crichton-Miller
Chairman



Consolidated profit and loss account
For the six months ended 31 March 2003


                                                                     Unaudited        Unaudited          Audited
                                                                   6 months to      6 months to     12 months to
                                                                      31 March         31 March     30 September
                                                                          2003             2002             2002
                                                                         £'000            £'000            £'000

Turnover                                                                52,408           44,097          218,748

Operating (loss) profit before goodwill amortisation,
impairment and exceptional costs                                       (5,060)          (4,560)           29,182
Goodwill amortisation                                                  (1,277)            (854)          (1,683)
Goodwill impairment                                                          -                -          (1,345)
Exceptional operating costs                                            (1,271)                -                -

Operating (loss) profit                                                (7,608)          (5,414)           26,154
Net interest payable                                                   (2,149)          (1,331)          (2,123)

(Loss) profit on ordinary activities before goodwill
amortisation, impairment, exceptional costs and tax                    (7,209)          (5,891)           27,059

(Loss) profit on ordinary activities before tax                        (9,757)          (6,745)           24,031
Taxation                                                                 2,927            1,956          (7,120)
(Loss) profit on ordinary activities after taxation                    (6,830)          (4,789)           16,911
Ordinary dividend                                                      (2,823)          (2,751)          (9,295)
Retained (loss) profit for the period                                  (9,653)          (7,540)            7,616

(Loss) earnings per ordinary share
Headline (loss) earnings per ordinary share                            (11.1p)           (9.3p)            42.5p
Basic (loss) earnings per ordinary share                               (14.7p)          (10.3p)            36.5p



The Group has no recognised gains or losses other than the (loss) profit for the
financial period.



Consolidated balance sheet
As at 31 March 2003

                                                              Unaudited        Unaudited            Audited
                                                            6 months to      6 months to         Year ended
                                                               31 March         31 March       30 September
                                                                   2003             2002               2002
                                                                  £'000            £'000              £'000
Fixed assets:
Intangible assets - goodwill                                     46,249           30,746             45,396
Tangible assets                                                  89,044           63,290             72,034
Investments                                                       3,432            1,896              3,191
                                                                138,725           95,932            120,621
Current assets:
Assets held for disposal                                              -              800              2,365
Debtors                                                          36,035           26,529             15,462
Cash at bank and in hand                                         20,163           13,318             61,854
                                                                 56,198           40,647             79,681
Creditors:
Amounts falling due within one year                            (79,111)         (65,330)           (75,446)
Net current (liabilities) assets                               (22,913)         (24,683)              4,235
Total assets less current liabilities                           115,812           71,249            124,856
Creditors:
Amounts falling due after more than one year                   (82,317)         (44,150)           (81,799)
Provision for liabilities and charges                           (5,962)          (6,022)            (5,962)
Net assets                                                       27,533           21,077             37,095

Capital and reserves
Called up share capital                                           2,352            2,332              2,350
Retained reserves                                                25,181           18,745             34,745
Equity shareholders' funds                                       27,533           21,077             37,095



Consolidated cashflow statement
For the six months ended 31 March 2003

                                                                 Unaudited       Unaudited            Audited
                                                               6 months to     6 months to         Year ended
                                                                  31 March        31 March       30 September
                                                                      2003            2002               2002
                                                                     £'000           £'000              £'000

Net cash (outflow) inflow from operating activities               (19,654)         (7,328)             54,018
Returns on investments and servicing of finance                    (2,149)         (1,331)            (2,217)
Taxation                                                           (3,172)         (2,088)            (7,033)
Capital expenditure and financial investment                      (10,457)         (5,922)            (7,875)
Acquisitions                                                       (2,130)                           (31,032)
Equity dividends paid                                                    -               -            (8,501)
Cash (outflow) before management of liquid resources and
financing
                                                                  (37,562)        (16,669)            (2,640)
Financing                                                          (6,168)        (18,171)             16,689
(Decrease) increase in cash in the period                         (43,730)        (34,840)             14,049



Notes:

1.         The principal Group accounting policies have been applied
consistently throughout the current half year and are consistent with those set
out in the 2002 Annual Report and Financial Statements.



2.         The loss per ordinary share is based on the weighted average
number of ordinary shares in issue of 46,559,828 (six months to 31 March 2002 -
46,473,490; year ended 30 September 2002 - 46,295,205). The headline loss per
ordinary share is based on Group profit on ordinary activities, after taxation,
but before goodwill amortisation and exceptional operating costs.



3.         An interim dividend of 6.0p per ordinary share will be paid on 18
August 2003 to shareholders on the Register on 11 July 2003.



4.         The profit and loss account, balance sheet and cashflow statement in
this interim report, which was approved by the Board of Directors on 6 May 2003,
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 2002
incorporating an unqualified audit report have been filed with the Registrar of
Companies.



5.         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
                                                                  2003             2002               2002
                                                                 £'000            £'000              £'000

United Kingdom and Ireland                                      51,366           42,966            184,715
Netherlands and Belgium                                              -                -             16,012
Germany, Switzerland and Austria                                     -                -             14,191
Others                                                           1,042            1,131              3,830
                                                                52,408           44,097            218,748



Group turnover and (loss) profit before goodwill amortisation, impairment,
exceptional costs, interest and tax by class of business was as follows:


                                     Turnover                       Operating (loss) profit before goodwill
                                                                   amortisation, impairment and exceptional
                                                                                     costs
                         Unaudited     Unaudited           Audited     Unaudited     Unaudited       Audited
                       6 months to   6 months to        Year ended   6 months to   6 months to    Year ended
                          31 March      31 March      30 September      31 March      31 March     September
                              2003          2002              2002          2003          2002          2002
                             £'000         £'000             £'000         £'000         £'000         £'000

Camping 1                        -             -           109,194       (9,864)       (8,532)        18,963
Hotel Breaks 2              36,595        29,641            76,941         3,634         2,910         7,805
Adventure holidays          15,813        14,456            32,613         1,170         1,062         2,414
                            52,408        44,097           218,748       (5,060)       (4,560)        29,182

1       The losses of the Camping division for the six months to
31 March 2003 include an operating loss (before goodwill amortisation,
impairment and exceptional operating costs) of £1,253,000 in respect of the
acquisition of Eurosites on 30 September 2002 (£2,925,000 after goodwill
amortisation, impairment and exceptional operating costs).

2       The results of the Hotel Breaks Division for the half
years to 31 March 2002 and 31 March 2003 comprise  six four-weekly accounting
periods.



6.      Reconciliation of operating (loss) profit to net cash (outflow)
inflow from operating activities:


                                                        Unaudited           Unaudited            Audited
                                                      6 months to         6 months to         Year ended
                                                         31 March            31 March       30 September
                                                             2003                2002               2002
                                                            £'000               £'000              £'000

Operating (loss) profit                                   (7,608)             (5,414)             26,154
Depreciation and amortisation and impairment
of goodwill                                                 1,873               1,214             16,198
Increase in debtors                                      (19,627)            (11,282)            (1,609)
Increase in creditors                                       5,708               8,154             13,275
Net cash (outflow) inflow from operating
activities                                               (19,654)             (7,328)             54,018



7.         Reconciliation of net debt
                                                         Unaudited         Unaudited            Audited
                                                       6 months to       6 months to         Year ended
                                                          31 March          31 March       30 September
                                                              2003              2002               2002
                                                             £'000             £'000              £'000

(Decrease) increase in cash in the period                 (43,730)          (34,840)             14,049
Cash outflow (inflow) from decrease (increase)
in debt and lease financing                                  6,315            18,794           (15,218)
Movement in net debt in the period                        (37,415)          (16,046)            (1,169)
New hire purchase contracts                                (5,569)           (1,816)            (6,161)
Net debt at beginning of period                           (32,395)          (25,065)           (25,065)
Net debt at end of period                                 (75,379)          (42,927)           (32,395)



8.         Copies of this Interim Report are available from the registered
office of Holidaybreak plc, Hartford Manor, Greenbank Lane, Northwich, Cheshire
CW8 1HW.






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