Interim Management Statement

RNS Number : 1804H

Holidaybreak PLC

16 February 2010

 



16 February 2010: For immediate release

HOLIDAYBREAK PLC

Interim Management Statement

Holidaybreak, the education, leisure and activity travel group, today releases its interim management statement for the period 1 October 2009 to 15 February 2010.

John Coleman, Executive Chairman, said: 

"The Group continues to demonstrate resilience in the current challenging economic conditions. Sales for the year to date are down 2% on the equivalent period in the previous year, reflecting capacity reduction in Camping and a later booking pattern generally."

"Whilst trading in each of the Group's divisions is encouraging, we expect the trading conditions over the coming year to remain challenging as a result of continuing economic uncertainty. The Board anticipates that the Group will perform in line with its expectations for the year ending 30 September 2010." 

Summary

Overall, Group sales intake is down 2% compared with last year.

At this stage, with 39% of target Group revenue still to be booked, we anticipate performing in line with management expectations for the year ending 30 September 2010.

Divisional performance

Education

The Education Division accounted for approximately 26% of 2009 Group revenue. We have already achieved 88% of target bookings for 2010 and 19% for 2011. Sales intake for the division is 1% below last year. We have not detected any material signs that the division is being affected by the recession; however school closures due to adverse weather conditions in January have delayed bookings. 

PGL outdoor education centres are 96% booked for 2009/10, with revenue growth at approximately 7%. The centre at Liddington, purchased in September 2009, will open as a PGL outdoor education centre in April 2010 and has already exceeded target bookings for 2010.

Hotel Breaks

Hotel Breaks accounted for approximately 30% of 2009 Group revenue. Sales intake for the division is currently 2% below last year. The adverse weather conditions in January impacted performance, particularly Superbreak's sales through retail travel agents.

Sales for UK short breaks are in line with last year as we continue to benefit from popular theatre shows such as Lion King, Wicked and We Will Rock You. However, demand for European destinations from the UK remains soft and our Dutch business is seeing a combination of flat volumes and lower hotel rates for its domestic product.

Adventure Travel

Adventure Travel accounted for approximately 20% of 2009 Group revenue. Sales intake for the division is currently 2% below last year.

The division has seen stronger demand in recent weeks, with sales in the last four weeks up 6% year-on-year, and is well positioned to exploit any further improvement in market conditions.

Camping

Camping accounted for approximately 24% of 2009 Group revenue. Sales intake is currently 3% below last year's level on 7% lower capacity for the 2010 season with approximately 60% of target sales booked (compared to 64% last year), reflecting the later booking market that we expected.

We continue to focus on improving occupancy and maximising yields.  Sales from the UK, Germany and Ireland are in line with our expectations. Trading to date in the Netherlands has been slower than anticipated but we have seen signs of improvement in recent weeks.

Financial position

There has been no significant change in the Group's financial position since the full year results statement in November 2009. The normal working capital cycle of the Group's businesses is unchanged.

Board and management

The search for a new Group Chief Executive continues and, in the meantime, John Coleman remains Executive Chairman.

Financial calendar

Holidaybreak's Annual General Meeting will be held at 11.30am on Wednesday 24 February 2010 at The Lowry Centre, Pier 8, Salford Quays, Manchester M50 3AZ.

The Company expects to announce the Interim Results for the six months ending 31 March 2010 on 13 May 2010.

Enquiries:

John Coleman / Bob Baddeley                                   Holidaybreak   [phone]

Catherine Hicks / Craig Breheny / Oliver Hughes      Brunswick        [phone]

Note to Editors

1.   Holidaybreak (HBR.L) is an education, leisure and activity travel group listed on the London Stock Exchange. The Group's four operating divisions have market leading positions in the UK and other major European markets, organising educational and activity trips for UK school children, short breaks in the UK and Europe, worldwide adventure holidays and mobile-home and camping holidays on sites throughout Europe. For more information, please go to www.holidaybreak.co.uk.

2.   This information in this release is based on management information.

3.   Certain statements in this announcement are forward-looking statements. Such statements are based on current expectations and by their nature are subject to a number of risks and uncertainties that could cause actual results and performance to differ materially from any expected future results or performance expressed or implied by the forward-looking statement. These forward-looking statements are made only as at the date of this announcement. Except as required by law, Holidaybreak plc has no responsibility or obligation to update publicly or revise any of the forward-looking statements contained herein.

 

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