Holidaybreak PLC
05 September 2002
For Immediate Release 5 September 2002
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.
At the time of our Interim Results announcement in May we indicated that each of
our three trading divisions were expected to achieve good results and that the
Holidaybreak Group would continue its consistent record of earnings and dividend
growth. The remaining bookings for 2002 have come in as we anticipated and,
whilst the year is not quite at a close, we have a high level of confidence that
the upper end of market expectations will be met.
CAMPING
In a difficult year for many overseas package holiday operators our Camping
businesses, Eurocamp and Keycamp, have continued to prosper. Our mobile-home,
self-catering holiday formula continues to grow in popularity, France's appeal
as a holiday destination remains undiminished and we were unaffected by the
various problems associated with airline travel. The UK overseas holidays
market was in positive mood once the Jubilee and World Cup were over and late
booking demand in Holland and Germany, our two main overseas markets, was also
healthy. Bookings continued to come in steadily over the summer months and we
have now achieved our revenue and occupancy targets, ensuring another year of
sales and profits growth. Sales for the year are now 6% up on last year's
equivalent figure.
HOTEL BREAKS
It was clear, with first half revenues 25% up on 2001 at the half-year, no sign
of a weakening in UK consumer demand and plentiful hotel capacity, that our
Hotel Breaks division would have another outstanding year. In the event, the
second half has seen even better comparative returns than the first and full
year revenues will be ahead by over 30%.
Our Superbreak and Hotel Breaks brands have strengthened their position in the
retail agency sector following the absorption of the Crystal Britain programme
from Thomson (TUI UK). Internet and direct telephone bookings are growing
strongly and we continue to see good returns from the European breaks programme
which is approaching the first anniversary of its launch.
ADVENTURE HOLIDAYS
The performance of our Adventure Travel division underlines the growing appeal
of this type of travel and also illustrates the benefits of having such a
geographically diverse range of destinations. Sales have come through strongly
for the critical fourth quarter period and cumulative revenues for the year are
now 3% ahead of the 2001 equivalent. Explore Worldwide and Regal Holidays have
done exceptionally well to achieve this level of sales bearing in mind the very
difficult trading conditions experienced in the months following the September
11th attack. Whilst margins have inevitably come under some pressure, due to
the mix of tours sold and the continuing effects of airline schedule changes,
and profits will be lower than in 2001, we are extremely satisfied with the
overall outcome for the year.
PRELIMINARY RESULTS ANNOUNCEMENT
We intend to announce our Preliminary Results for the year to 30th September
2002 on Thursday 5th December.
FUTURE PROSPECTS
Our businesses, although diverse in their nature, share important
characteristics - consistent trading records, strong cash generation, flexible
cost structures, brand leadership positions and loyal customers. All are well
placed to make further progress and all have the resilient qualities which are
so vital in times of political and economic uncertainty.
Strong cash generation is a feature of Holidaybreak's business operations and we
anticipate a significant reduction in the year end debt figure and a further
improvement in interest cover. As well as paying healthy and increasing levels
of dividends to our shareholders we are well placed financially to invest in the
growth and development of our existing businesses and to make acquisitions
should the right opportunities arise.
It is too early to analyse 2003 booking trends for Camping which is an entirely
summer season business. However, initial bookings intake for Hotel Breaks and
Adventure, both of which operate throughout the winter, has been encouraging to
date and we are looking forward to strong first half trading.
ends
For further information, please contact:
Holidaybreak plc Tel: +44 (0) 1606 787 100
Richard Atkinson, CEO
Bob Baddeley, Finance Director
Buchanan Communications Tel: +44 (0) 20 7466 5000
Tim Anderson / Nicola How
This information is provided by RNS
The company news service from the London Stock Exchange
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