Holidaybreak PLC
18 September 2003
For Immediate Release 18 September 2003
HOLIDAYBREAK PLC
TRADING UPDATE
As the summer holiday season and our financial year draw to a close, we take the
opportunity to provide an update on the trading performance of the Holidaybreak
Group.
Our two overseas holiday businesses, Camping and Adventure Holidays, have loyal
customers and resilient business models which have enabled them to perform well
in the context of a year in which the sector has suffered a series of setbacks.
By contrast, holiday businesses within the UK have generally thrived and our
Hotel Breaks division will again achieve significant growth in the UK whilst at
the same time making excellent progress with its European programme, now in its
second year.
Camping
At the time of our Interim Results announcement in May, we reported a much more
encouraging year on year post-Easter trading pattern for Camping. Our
expectation that this would continue into the summer proved correct and some of
the ground lost earlier in the year was regained. Since the beginning of May,
Camping Division sales have been 41% up on last year on a like for like basis.
With the season virtually at a close, cumulative sales are now 6% below 2002
with capacity reduced by 4% compared to last year. We believe that the
unusually hot summer in the UK and forest fires in the South of France had some
adverse effect on booking levels in the latter part of the period. However, the
fine weather was also enjoyed by customers on our camp-sites and satisfaction
levels expressed in post holiday questionnaires have been measurably better than
in 2002.
Hotel Breaks
Hotel Breaks sales intake has run at 34% above 2002 during the post-Easter
period and now stands at 27% ahead of 2002 equivalents overall. Recent
performance has been boosted by more people than usual staying in the UK for
their summer break this year. Over the longer term we are also well placed to
benefit from consumer trends within the holiday sector with our strong
multi-channel distribution and a simple, flexible product offer. Domestic short
breaks remain the core business, accounting for 90% of total sales.
Nevertheless, the 'accommodation only' European breaks programme, in its second
year of operation, has grown strongly and is 181% up on last year.
Adventure
Adventure holiday sales, net of refunds for tours cancelled due to Foreign
Office advice against travel, have been 5% ahead of 2002 since the start of May
and are cumulatively 1% up compared to last year. As well as the impact of SARS
and the Iraq war, summer demand was affected by various recent terrorist attacks
and warnings, with the travel restrictions to East Africa being particularly
unhelpful. Recently we have seen a more settled geopolitical outlook and a
number of destinations which have seen depressed demand are beginning to show
signs of recovery.
Preliminary Results Announcement
The date of our Preliminary Results announcement for the year to 30 September
2003 is provisionally fixed for Thursday 4 December.
Prospects
In what has proved an unusually difficult year for the overseas holiday sector,
we are satisfied with the resilient performance of our two overseas holiday
businesses, Camping and Adventure. We are very pleased with the continued
success of Hotel Breaks and the progress it is making in Europe. Strong cash
generation will once again reduce debt.
We anticipate a satisfactory outcome for the year, in line with the Board's
expectations, demonstrating the strength of our businesses and continuing good
prospects for the future.
For further information, please contact:
Richard Atkinson, CEO
Bob Baddeley, FD
Holidaybreak 01606 787102
Tim Anderson /Isabel Petre
Buchanan Communications 020 7466 5000
This information is provided by RNS
The company news service from the London Stock Exchange
*A Private Investor is a recipient of the information who meets all of the conditions set out below, the recipient:
Obtains access to the information in a personal capacity;
Is not required to be regulated or supervised by a body concerned with the regulation or supervision of investment or financial services;
Is not currently registered or qualified as a professional securities trader or investment adviser with any national or state exchange, regulatory authority, professional association or recognised professional body;
Does not currently act in any capacity as an investment adviser, whether or not they have at some time been qualified to do so;
Uses the information solely in relation to the management of their personal funds and not as a trader to the public or for the investment of corporate funds;
Does not distribute, republish or otherwise provide any information or derived works to any third party in any manner or use or process information or derived works for any commercial purposes.
Please note, this site uses cookies. Some of the cookies are essential for parts of the site to operate and have already been set. You may delete and block all cookies from this site, but if you do, parts of the site may not work. To find out more about the cookies used on Investegate and how you can manage them, see our Privacy and Cookie Policy
To continue using Investegate, please confirm that you are a private investor as well as agreeing to our Privacy and Cookie Policy & Terms.