Holidaybreak PLC
14 September 2007
14 September 2007: For immediate release
HOLIDAYBREAK PLC
Pre-close trading update
Holidaybreak, the European specialist holiday group, today releases its normal
trading update prior to the end of its current financial year
Summary
Holidaybreak continues to perform well. The Board believes that the Group's
financial and trading prospects for the financial year ending 30 September 2007
remain satisfactory. Holidaybreak expects to again deliver industry-leading
margins. Following the recent acquisition of PGL for £100m, year end net debt
will be substantially higher than at the previous year end, as anticipated.
Given the strength of its balance sheet and its cash generation, Holidaybreak
remains well positioned to grow its operations, both organically and by
acquisition.
Carl Michel, Chief Executive, said:
"With two weeks to the end of our current financial year, Holidaybreak remains
on target to perform well. The poor summer weather was generally helpful to our
businesses, driving late bookings to Camping. We are particularly pleased with
the progress being made at PGL, our recent acquisition.
We are market leaders in our specialist sectors. Looking ahead, there are
several possible acquisitions in the pipeline and we will continue to look at
all the opportunities to grow our expanded portfolio of brands within the
Holidaybreak group."
Trading update
As we approach the end of the financial year to 30 September 2007, Holidaybreak
is again expected to deliver industry-leading margins. The diversity of
Holidaybreak's businesses and their flexible cost structure gives the Group
robustness.
Hotel Breaks
Hotel Breaks' overall sales intake for 2007 is currently 7% above 2006
equivalents. London continues to perform strongly on the back of strong theatre
and exhibition demand. We have benefited from the inclusion of West End Theatre
Bookings (acquired in January) and this has driven our 'packaged' share from 27%
to 40%.
Adventure Travel
The Adventure Travel Division looks set to report on another good year. Sales
are 4% up on 2006 equivalents. Results were however hit by geographical events
the Middle East throughout the year. The increase in air passenger duty had a
modest impact.
Camping
Camping sales are level with last year with capacity cut by 4%, a pleasing
performance. Occupancy has improved and high season has been filled at good
yields. In particular, we have seen good growth in Ireland and had a successful
late booking campaign in the U.K. as a result of the poor summer weather.
Education
The Education division was created following the acquisition of PGL in the
summer. Trading continues to be strong. Sales for the current year are 13% ahead
of 2006 equivalents and 18% ahead for 2008. Adventure centres are already 85%
sold for 2008.
Interest
The acquisition of PGL increased the Group's borrowings. The Group's net
interest costs in the next financial year will therefore be higher.
Outlook
The Board continues to expect to achieve a satisfactory outcome for the full
year 30 September 2007. It believes that the Group is well positioned to respond
to changing conditions and to exploit market opportunities.
Management continues to review acquisition opportunities and deliver industry
leading margins.
Enquiries:
Holidaybreak: +44 (0)1606 787100
Carl Michel / Bob Baddeley
Brunswick +44 (0) 20 7404 5959
James Hogan / Craig Breheny / Ash Spiegelberg
Note to Editors
1. Holidaybreak (HBR.L) is listed on the London Stock Exchange. The European
specialist holiday group sold 3.1m holidays in the year ended 30 September 2006
(2005: 3.0m). Holidaybreak has four operating divisions: Hotel Breaks, Adventure
Travel, Camping and Education. Each is a market leader in its respective
specialist sector of the European holiday industry, has multi-channel
distribution and is recognised for providing high standards of product and
service quality. For more information, please go to www.holidaybreak.co.uk.
2. The company expects to announce its full year results on Thursday 29th
November 2007.
This information is provided by RNS
The company news service from the London Stock Exchange
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