Interim Results - Pre-tax Profit Up 24%

Holidaybreak PLC 6 December 1999 HOLIDAYBREAK PLC PRELIMINARY RESULTS FOR THE YEAR ENDED 30 SEPTEMBER 1999 'Record Profits' * Profit before tax increased by 24% to £17.3 million (1998: £14.0 million) * Turnover increased by 25% to £142.4 million (1998: £113.5 million) * Strong cash generation - balance sheet strengthened * Excellent contribution from Keycamp acquired at the end of 1998 * Hotel Breaks performing strongly * Taking advantage of the trend towards direct purchasing via the Internet * Actively seeking out potential acquisitions in the holiday sector * Dividend increased by 12% to 14.0p (1998: 12.5p) Commenting on the results Angus Crichton-Miller, Chairman, said: 'The successful integration of Keycamp, the continued buoyancy of the camping market and our position as the dominant operator in the sector, combined to produce a record result for the Group. The current year has started well with Hotel Breaks performing strongly and the expanding opportunities to market direct to our customers give us good reason to be optimistic about the future.' Enquiries: Richard Atkinson, Chief Executive Bob Baddeley, Finance Director Holidaybreak plc Telephone: 0171 796 4133 on Monday, 6 December 1999 Thereafter 01606 787 100 Michael Sandler Tim Robertson Hudson Sandler Limited Telephone: 0171 796 4133 CHAIRMAN'S STATEMENT I am pleased to report substantial progress by Holidaybreak plc in the year to 30 September 1999. Profits before tax at £17.3m on turnover of £142.4m (1998: £113.5m), were up 24% on the 1998 figure, our largest ever year on year increase. The increase in earnings per share, from 26.8p to 29.3p, in reality understates our achievement as last year's figures included the benefit of six weeks Keycamp trading which were disproportionately profitable. TRADING PERFORMANCE Our Camping Division has had an excellent year with all brands and markets performing well. Bookings growth, higher sales values, camp-site occupancy gains and an increased proportion of mobile-home bookings, along with efficiencies resulting from the 1998 acquisition of Keycamp, all contributed. The integration of Keycamp has gone extremely well and we have been delighted with its performance in its first full year as part of the Holidaybreak Group. Eurocamp, which remains our largest camping business and brand leader, performed well in all the major European markets as well as the UK. Hotel Breaks staged a healthy recovery after a difficult start to the year, eventually recording turnover and operating profit figures in line with the previous year. A strong finish to 1999 trading and a variety of distribution and product development initiatives give us good reason to be optimistic about future prospects. DIVIDEND The Board is recommending a final dividend of 9.6p, payable on 20 April 2000 to shareholders on the register on 24 March 2000, making a total of 14.0p for the year, an increase of 12% over 1998. Dividend cover will be 2.1, in line with our policy of maintaining approximately two times cover. GROUP FINANCES The acquisition of Baldwin plc, Keycamp's parent company, resulted in a significant increase in our borrowings, which stood at £35.5m in the 1998 Balance Sheet. As we anticipated, substantial cash inflows resulting from the sale of Baldwin's restaurants and various properties, along with record levels of cash generated from our operating activities, reduced the year end debt figure, to £24.9m as at 30 September 1999. Interest cover is healthy at 7.2 times and the borrowing facilities we have in place continue to provide ample headroom. PRODUCT QUALITY The holiday industry is increasingly competitive as the consuming public rightly demand that holiday companies take all reasonable steps to avoid a disappointing holiday. All our businesses place a very high priority on delivering consistent service quality to their customers. Eurocamp, in particular, is always rated highly in consumer surveys, notably by Holiday Which? in their bi-annual report on holiday tour operators. We will not allow a quest for growth to prejudice the product quality that we provide. The reputation of our holidays is too valuable an asset to put at risk. NAME CHANGE At an Extraordinary General Meeting of the Company, held on 10 March 1999, a special resolution to change the name of the Company to Holidaybreak plc was passed. This change was made primarily to be able to explain our business better to our investors, and has no impact on our customers. Eurocamp, Keycamp, Superbreak and all the other trading companies continue to use their existing brand names. BOARD CHANGES On 2 August 1999 the Company announced the appointment of Clive McLintock as a non-executive director, in succession to Gordon Harman who has stepped down from the non-executive position which he had held since retiring as Finance Director in 1995. Clive McLintock brings with him a wealth of board experience, some of it in the travel industry, and will make a valuable contribution to the business in the coming years. PROSPECTS Hotel Breaks have made an excellent start to the new campaign, continuing the strong trends experienced in the latter part of the year to 30 September 1999. This strength includes the Christmas and New Year period where bookings are ahead of previous years. Camping is also on course. In a continuation of our yield optimisation strategy, we have changed pricing structures in order to maximise potential, particularly in peak periods. As expected, this has resulted in a slower take- up during the main summer holiday period. As a consequence, overall booking volumes are slightly behind the equivalent 1999 figure. The seasonal spread of bookings has improved and we expect that the school holidays will eventually sell out at significantly higher yields. We are confident that both Camping and the Group as a whole will have another good year and that further progress will be made. Looking to the longer term, there is a clear trend towards consumers buying a whole range of services direct. Both our divisions are extremely well placed to take advantage of this trend and have been actively developing their Internet distribution which we expect will become an increasingly important feature, both of our own businesses and the travel sector in general in the years to come. EMPLOYEES The move of our Group and Camping Division head offices to Hartford, where we employ 300 people, has been extremely successful. In total we employ a permanent workforce of 600 people in five countries. The quality of our people continues to be a tremendous asset to the Group and I thank everyone for their contribution to another excellent year for Holidaybreak plc. Angus Crichton-Miller Chairman Holidaybreak plc- Consolidated Profit and Loss Account for the Year Ended 30 September 1999 1999 1998 £000 £000 Turnover 142,436 113,507 Cost (102,444) (82,181) of sales Gross 39,992 31,326 profit Administrative (19,942) (16,272) expenses Operating 20,050 15,054 profit Investment 134 376 income Interest (2,913) (1,427) payable Profit on ordinary activities before 17,271 14,003 taxation Tax on profit on ordinary activities (5,165) (4,228) Profit on ordinary activities after 12,106 9,775 taxation Dividends (5,800) (4,942) paid and proposed Retained 6,306 4,833 profit for the year Earnings per 29.3p 26.8p ordinary share Dividend per share: Interim 4.4p 4.0p Final 9.6p 8.5p Holidaybreak plc- Balance Sheet as at 30 September 1999 1999 1998 £000 £000 Fixed assets Tangible 48,666 47,382 assets Current assets Assets held for disposal 5,019 10,084 Debtors 11,905 11,755 Cash 26,194 23,237 at bank and in hand 43,118 45,076 Creditors: (39,438) (47,023) amounts falling due within one year Net 3,680 (1,947) current assets/(liabilities) Total 52,346 45,435 assets less current liabilities Creditors: (45,591) (45,023) amounts falling due after more than one year Provisions (74) (256) for liabilities and charges Net assets 6,681 156 Capital and reserves Called 2,069 2,061 up share capital Share 15,470 15,154 premium account Other 87 87 reserves Goodwill (45,548) (45,511) write-off reserve Profit 34,603 28,365 and loss account Equity 6,681 156 shareholders' funds Holidaybreak plc - Consolidated Cash Flow Statement for the Year Ended 30 September 1999 1999 1999 1998 1998 £000 £000 £000 £000 Net 28,562 13,515 cash inflow from operating activities Returns on investments and servicing of finance Interest 134 376 received Interest (1,887) (604) paid Interest (1,026) (823) element of hire purchase payments (2,779) (1,051) Taxation UK (2,836) (2,289) Taxation paid Overseas (696) (791) Taxation paid (3,532) (3,080) Capital expenditure Purchase of (9,219) (12,114) tangible fixed assets Receipts 2,706 2,405 from sale of tangible fixed assets (6,513) (9,709) Acquisitions and disposals Purchase (37) (26,020) subsidiary undertakings (net of cash acquired) Disposal of 6,737 - Baldwin Limited and its subsidiaries 6,700 (26,020) Equity dividends (5,330) (4,215) paid Cash inflow (outflow) before management of liquid resources and 17,108 (30,560) financing Financing Issue 324 10,725 of ordinary share capital Increase in - 21,000 loans Capital (7,989) (3,403) element of hire purchase payments (7,665) 28,322 Increase 9,443 (2,238) (decrease) in cash in the year NOTES 1. Segment 1999 1998 information £000 £000 Group turnover by geographical area was as follows: United Kingdom and 109,518 86,123 Ireland Netherlands 16,527 13,452 and Belgium Germany, 13,168 11,807 Switzerland and Austria Others 3,223 2,125 142,436 113,507 Group turnover and profit before tax and interest by class of business was as follows: Turnover PBIT 1999 1998 1999 1998 £000 £000 £000 £000 Camping 103,739 74,925 16,231 11,142 Holidays Short 38,697 38,582 3,819 3,912 breaks 142,436 113,507 20,050 15,054 2. Dividends 1999 1998 £000 £000 Interim 1,820 1,439 dividend paid of 4.4p per ordinary share (1998:4.0p) Final 3,980 3,503 dividend proposed of 9.6p per ordinary share (1998:8.5p) 5,800 4,942 If approved by shareholders, the proposed final ordinary dividend will be paid on 21 April 2000 to those ordinary shareholders on the register on 24 March 2000 and will absorb £3,979,392. 3. Non-statutory accounts The results set out in this announcement are non-statutory accounts within the meaning of Section 240 of the Companies Act 1985. The results for the year ended 30 September 1999 are extracts from the 1999 Group accounts which, if adopted by the members in General Meeting on 9 February 2000 will be filed with the Registrar of Companies. These have been audited and reported upon without qualification. The results for the Year ended 30 September 1998 are extracts from the 1998 Group statutory accounts, as filed with the Registrar of Companies. These were audited and reported upon without qualification.

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