Interim Results

Holidaybreak PLC
9 May 2002


For Immediate Release:                                                9 May 2002



                                Holidaybreak plc



        Announces Interim Results For The Six Months Ended 31 March 2002



Holidaybreak plc ("HBR"), the provider of specialist holidays, today announces
its interim results for the six months ended 31 March 2002.



Highlights



  • Holidaybreak is set to continue its consistent record of earnings and
    dividend growth

  • Half year dividend of 5.9p per share - increase of 9.2% on the 2001 figure

  • Camping Division:

     • Outperforming mainstream UK air package tour market

     • Strong annual performance anticipated with over 85% of expected 2002
       bookings already received

     • 2002 sales currently 6% ahead of 2001, with UK ahead 8%

       (all turnover recognised in second half, as usual)

  • Hotel Breaks:

     • Like for like sales intake for the year 30% above the 2001 figure

     • Profit increased 48% to £2.9 m

     • Encouraging returns from new European cities product

  • Adventure Holiday:

     • 7% increase in first half turnover achieved

     • Creditable results anticipated for full year despite 9/11 repercussions



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

"We remain firmly on track for further profits growth despite the difficulties
experienced by the Adventure Division. As we move into 2003 we anticipate
Adventure recovering lost ground as the strong underlying demand for this type
of holiday reasserts itself. Camping and Hotel Breaks are also well placed for
the challenges ahead and the strong cash generative qualities of our businesses
give the Holidaybreak Group additional strength. We view the future with
confidence."



For further information, please contact:
Richard Atkinson, CEO                                On 09.05.02:  020 7466 5000
Holidaybreak                                                        01606 787100

Tim Anderson / Nicola How
Buchanan Communications                                            020 7466 5000



                                Holidaybreak plc



             Interim Results For The Six Months Ended 31 March 2002



Chairman's Statement

Holidaybreak is well set to continue its consistent record of earnings and
dividend growth. At the half year, two of our three operating divisions, Hotel
Breaks and Adventure, have achieved encouraging profit figures. The Camping
Division, whose sales all fall into the second half, is as usual showing a first
half loss but with over 85% of expected 2002 bookings now received another
strong performance is confidently anticipated for the full year.



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 inevitable. For the six month period to 31
March 2002 this stands at £5.9m before tax and goodwill amortisation, 12% below
the equivalent 2001 deficit of £6.7m.



The lower interest charge of £1.3m (2001: £1.7m) reflects a reduction in debt
levels as the Group continues to generate healthy levels of cash. At the half
year, net debt of £42.9m was £13.3m lower than last year's figure.



Dividend

The Board has declared a half-year dividend of (5.9p) per share, an increase of
(9.2%) on the 2001 figure. This will be payable on 19 August 2002 to
shareholders on the register on 12 July 2002.



Camping Division

(54% of 2001 Group turnover, 67% of operating profit)

The first half loss for Camping is slightly increased to £8.5m (2001: £8.3m)
reflecting normal marketing and overhead costs in the October to March period.
Overall trading patterns for both the Keycamp and Eurocamp brands have remained
strong throughout. The September 11th factor was never a significant issue for
self-drive holidays within Europe. We continue to outperform mainstream UK air
packages where demand for summer holidays from families (our principal target
group) has been an area of weakness. In recent weeks, there has been a general
strengthening in the market which supports our view that, as the summer season
approaches, there will continue to be good levels of demand for our holidays.



The eventual profit outcome for the year for Camping depends critically on
demand from the UK, which is both our largest and most profitable market, and on
the levels of off peak season occupancy which we achieve in our mobile-homes and
tents. On both counts we are in a good position. Like for like UK Camping sales
are currently 8% ahead of 2001. The equivalent figure including sales from
non-UK markets is plus 6% and, whilst low season fill is uneven, overall
performance has been better than last year.



Hotel Breaks

(30% of 2001 Group turnover, 20% of operating profit)

Our Hotel Breaks division goes from strength to strength. First half sales rose
25% to £29.6m and profits increased by 48% to £2.9m. Net margins have improved
due to a combination of effective cost control, scale economies and improved
mix.



Since the half year, bookings have continued to forge ahead and London hotel
market conditions remain favourable to us. Like for like sales intake for the
year now stands at  30% above the 2001 figure. Further encouraging returns from
our new European cities product bodes well for longer term prospects and we have
already extended this programme by over 100 hotels to 450 in the recently
published second edition brochure.



Adventure Holidays

(16% of 2001 Group turnover, 13% of operating profit)

Unlike our other two businesses, the Adventure Division, which consists of
Explore Worldwide and diving specialist Regal Holidays, was affected by the
repercussions of September 11th. These included widespread cancellations and
holiday postponements, a hiatus in new bookings and airline schedules which
changed dramatically. Nevertheless, a 7% increase in the first half turnover
figure to £14.4m was achieved. Profits were down, due primarily to weaker tour
load factors, a direct consequence of post-September 11th instability in the
marketplace and amongst our airline suppliers.



The first half result was enhanced by an earlier than normal Easter, always a
busy period for Explore. As a consequence, some sales which usually fall into
the second half fell into the first period. We have also seen significantly
lower than normal demand from non-UK customers (USA, Australia, Canada etc), who
tend to favour the early summer period, leaving current overall sales for the
year nearly 2% up on 2001. Although the second half is currently behind last
year, week on week intake figures are favourable, load factors have improved and
we anticipate stronger than normal late booking activity. Given the difficulties
that have been faced, we do not expect to match last year's second half profit
figure but we do expect the Adventure Division to achieve a creditable result
and to create a solid base for future growth.



Appointment of New Director

We were recently pleased to welcome to the Board James Wallace, who joined us as
a non-executive director on May 1st 2002. He has a wealth of  experience, as a
senior director of Pifco Holdings plc and also as a non-executive director of
Bodycote International plc where he is Chairman.



Peter Folkman, who served as a non-executive director for four and a half years,
has stepped down from his position. We thank him for his valuable contribution
and support during a period of substantial progress for the Group.



Prospects

Our trading performance has been strong in what has been a difficult year for
many holiday companies. All our businesses look set to achieve a very
satisfactory result provided sales during the coming months are in line with our
current expectations. In short, we are on track for further profits growth
despite the difficulties experienced by the Adventure Division. As we move into
2003 we anticipate Adventure recovering lost ground as the strong underlying
demand for this type of holiday reasserts itself. Camping and Hotel Breaks are
also well placed for the challenges ahead and the strong cash generative
qualities of our businesses give the Holidaybreak Group additional strength. We
view the future with confidence.



Angus Crichton-Miller

Chairman



Consolidated profit and loss account

For the six months ended 31 March 2002


                                                                      Unaudited        Unaudited           Audited
                                                                    6 months to      6 months to      12 months to
                                                                       31 March         31 March      30 September
                                                                           2002             2001              2001

                                                                          £'000            £'000             £'000



Turnover                                                                 44,097           37,177           192,489

Operating (loss) profit before goodwill amortisation
and exceptional operating costs                                         (4,560)          (5,039)            26,674
Goodwill amortisation                                                     (854)            (840)           (1,703)
Exceptional operating costs                                                   -                -             (463)


Operating (loss) profit                                                 (5,414)          (5,879)            24,508
Net interest payable                                                    (1,331)          (1,658)           (2,865)


(Loss) profit on ordinary activities before goodwill
amortisation, exceptional operating costs and tax                       (5,891)          (6,697)            23,809


(Loss) profit on ordinary activities before tax                         (6,745)          (7,537)            21,643
Taxation                                                                  1,956            2,261           (6,289)

(Loss) profit on ordinary activities after taxation                     (4,789)          (5,276)            15,354
Ordinary dividend                                                       (2,751)          (2,475)           (8,343)

Retained (loss) profit for the period                                   (7,540)          (7,751)             7,011

(Loss) earnings per ordinary share
Headline (loss) earnings per ordinary share                              (9.3p)          (10.5p)             38.1p
Basic (loss) earnings per ordinary share                                (10.3p)          (11.5p)             33.4p



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



Consolidated balance sheet

As at 31 March 2002


                                                                    Unaudited        Unaudited           Audited
                                                                  6 months to      6 months to      12 months to
                                                                     31 March         31 March      30 September

                                                                         2002             2001              2001

                                                                                   As restated

                                                                        £'000            £'000             £'000

Fixed assets:
Intangible assets - goodwill                                           30,746           31,913            31,600
Tangible assets                                                        63,290           59,890            57,728
Investments                                                             1,896            1,906             1,896

                                                                       95,932           93,709            91,224

Current assets:
Investments held for disposal                                             800            1,106             2,626
Debtors                                                                26,529           26,497            13,421
Cash at bank and in hand                                               13,318            9,034            49,169

                                                                       40,647           36,637            65,216

Creditors:
Amounts falling due within one year                                  (65,330)         (59,829)          (61,925)

Net current liabilities (assets)                                     (24,683)         (23,192)             3,291

Total assets less current liabilities                                  71,249           70,517            94,515
Creditors:
Amounts falling due after more than one year                         (44,150)         (52,662)          (60,499)
Provision for liabilities and charges                                 (6,022)          (5,482)           (6,022)

Net assets                                                             21,077           12,373            27,994


Capital and reserves
Called up share capital                                                 2,332            2,295             2,317
Retained reserves                                                      18,745           10,078            25,677

Equity shareholders' funds                                             21,077           12,373            27,994



Consolidated cashflow statement

For the six months ended 31 March 2002


                                                                       Unaudited      Unaudited           Audited
                                                                     6 months to    6 months to      12 months to
                                                                        31 March       31 March      30 September

                                                                            2002           2001              2001

                                                                           £'000          £'000             £'000



Net cash (outflow) inflow from operating activities                      (7,328)       (13,628)            39,684
Returns on investments and servicing of finance                          (1,331)        (1,658)           (2,492)
Taxation                                                                 (2,088)        (1,716)           (7,600)
Capital expenditure and financial investment                             (5,922)        (4,277)           (7,720)
Equity dividends paid                                                          -              -           (7,639)

Cash (outflow) inflow before management of liquid
resources and financing                                                 (16,669)       (21,279)            14,233
Financing                                                               (18,171)       (17,972)          (14,591)

(Decrease) in cash in the period                                        (34,840)       (39,251)             (358)



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 2001 Annual Report and Accounts. The accounts for the six months to
31 March 2001 have been restated to reflect the adoption of FRS 19 "Accounting
for Deferred Taxation" as at 30 September 2001.



2.                Earnings per ordinary share are based on the weighted average
number of ordinary shares in issue of 46,473,490 (six months to 31 March 2001 -
45,851,482 year ended 30 September 2001 - 45,991,047). Headline earnings per
ordinary share are based on Group profit on ordinary activities, after taxation,
but before goodwill amortisation and exceptional operating costs.



3.                An interim dividend of 5.9p per ordinary share will be paid on
19 August 2002 to shareholders on the Register on 12 July 2002.



4                           The profit and loss account, balance sheet and
cashflow statement in this interim report, which was approved by the Board of
directors on 7 May 2002, 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 2001 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
                                                                    2002             2001               2001
                                                                   £'000            £'000              £'000

United Kingdom and Ireland                                        42,966           36,127            158,989
Netherlands and Belgium                                                -                -             15,659
Germany, Switzerland and Austria                                       -                -             13,650
Others                                                             1,131            1,050              4,191

                                                                  44,097           37,177            192,489



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


                                Turnover                                Operating profit (loss) before goodwill
                                                                        amortisation and exceptional operating 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
                                 2002          2001            2001            2002            2001             2001
                                £'000         £'000           £'000           £'000           £'000            £'000

Camping holidays                    -             -         103,691         (8,532)         (8,301)           17,833
Hotel Breaks                   29,641        23,713          57,768           2,910           1,965            5,466
Adventure holidays             14,456        13,464          31,030           1,062           1,297            3,375

                               44,097        37,177         192,489         (4,560)         (5,039)           26,674



6.                Reconciliation of operating profit (loss) 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
                                                                      2002            2001              2001
                                                                     £'000           £'000             £'000

Operating (loss) profit                                            (5,414)         (5,879)            24,508
Depreciation and amortisation                                        1,214           1,146            13,397
Non-cash fair value adjustment to goodwill                               -               -             (550)
(Decrease) in debtors                                             (11,282)        (11,450)             (414)
Increase in creditors                                                8,154           2,555             2,743

Net cash (outflow) inflow from operating activities                (7,328)        (13,628)            39,684



7.                Reconciliation of net debt


                                                           Unaudited        Unaudited            Audited
                                                         6 months to      6 months to         Year ended
                                                            31 March         31 March       30 September
                                                                2002             2001               2001
                                                               £'000            £'000              £'000

(Decrease) in cash in the period                            (34,840)         (39,251)              (358)
Cash outflow from decrease in debt and
lease financing                                               18,794           18,184             15,713

Movement in net debt in the period                          (16,046)         (21,067)             15,355
New hire purchase contracts                                  (1,816)          (2,967)            (8,217)
Net debt at beginning of period                             (25,065)         (32,203)           (32,203)

Net debt at end of period                                   (42,927)         (56,237)           (25,065)



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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