Trading Update

Holidaybreak PLC
05 September 2005



5 September 2005

                                HOLIDAYBREAK PLC

                      Appointment of a new Chief Executive

                                 Trading update


Holidaybreak, the UK's leading operator of specialist holiday businesses,
announces the appointment of Carl Michel as its new Chief Executive and gives an
update on trading ahead of the end of its financial year.

Summary

• Carl Michel joins Holidaybreak today as its new Chief Executive. He
  succeeds Richard Atkinson, who is retiring after 30 years with the Group. Mr.
  Atkinson will leave the Group after an appropriate handover period.

• Mr. Michel, 42, has extensive experience in the international travel
  sector. He has worked for companies including McKinsey, British Airways, 
  Energis and Opodo.

• After 48 weeks of the financial year ending 30 September 2005, the Board
  believes that the financial and trading prospects of the group are 
  satisfactory and that the Group is well positioned to continue to exploit 
  market opportunities. Holidaybreak expects to deliver double-digit margins and 
  be cash generative.

• The terrorist attacks in London and Egypt in July have not had a
  material impact on the Group's expected outcome for the current financial 
  year.

The diversity of Holidaybreak's businesses and its flexible cost structure means
the performance of the Group as a whole continues to be robust.

• The Group's divisions are market leaders in their specialist sectors and
  enjoy industry-leading margins.

Richard Atkinson, retiring Chief Executive, said: "Events in the UK and Egypt,
along with the Tsunami, mean that this has been an eventful year in our markets.
However, the diversity of Holidaybreak's businesses and our flexible cost
structure limits the impact of unforeseen external events on the Group's
results."

"With four weeks to the end of the current financial year, Holidaybreak remains
on target to deliver another solid financial performance. We are market leaders
in our specialist sectors and our businesses enjoy industry-leading margins. Our
two Dutch acquisitions have increased the proportion of our activities in growth
sectors and have given the group a better balance. I am confident that
Holidaybreak, with its diversity of resilient, quality businesses will continue
to prosper. I would like to thank an excellent management team and all the
company's employees for their contribution and support. I wish them well in the
future."

Chief Executive appointment

Carl Michel today joins Holidaybreak as its new Chief Executive. He replaces
Richard Atkinson, who will be retiring after an appropriate handover period.
Mr. Michel, 42, has extensive management experience in the international travel
sector and has worked for a range of companies, including McKinsey, British
Airways, Deutsche BA (where he was CEO), Energis and Opodo.
Bob Ayling, Chairman, said: "I am delighted that Carl has agreed to join
Holidaybreak. He is a well-known, successful senior executive in the travel
industry, with outstanding strategic skills and strong European credentials. I
believe that he has the capabilities to take Holidaybreak through its next phase
of development."

"At the same time, the departure of Richard Atkinson after thirty years with the
business is a sad moment for us. He began in the business in 1975, which was
then providing holidays for less than 700 families. Holidaybreak is the UK's
leading operator of specialist holiday businesses, now selling nearly three
million holidays annually. We have three profitable, cash generative divisions,
attractive margin performance and good trading results. Richard can be
justifiably proud of all that he has achieved and he is retiring with our
immense gratitude and good wishes."

Carl Michel said: "Holidaybreak is a great business and I am delighted to be
given this opportunity. Working with Bob Ayling and the management team, I am
looking forward to leading the company through to its next stage of development.
I will be looking to build on the good work of my predecessor, maintaining the
focus on yield optimisation and cash generation."

Trading update

After 48 weeks of the financial year ending 30 September 2005, Holidaybreak is
again expected to deliver double-digit margins and be cash generative. Whilst
the recent terrorist attacks in London and Egypt have had some impact on the
Hotel Breaks and Adventure divisions, the effect on the Group results for the
current financial year is expected to be limited.

In the year to date, Hotel Breaks and Adventure have achieved like-for-like
sales growth and, following recent acquisitions, together account for around
two-thirds of Group revenues. As previously reported, sales are lower in
Camping, where capacity has been significantly reduced.

Hotel Breaks

Hotel Breaks' overall sales intake for 2005 is currently 5% higher than in 2004.
On a like-for-like basis, the increase is +1%. Bookit, the Dutch on-line hotel
and self-catering reservations business, acquired in December 2004, continues to
make excellent progress. Its sales growth during the period of our ownership has
been +39%.

The terrorist attacks in London on 7 July and subsequent events have impacted on
bookings for the capital but we have seen a recovery in overall intake figures
in recent weeks. We offer a very wide spread of locations, both within the UK
and overseas, and many customers have opted for an alternative short break
destination. We have also benefited from the very low level of fixed costs,
which is a significant feature of the Hotel Breaks business. All hotel room
allocations are taken on an uncommitted basis and this has protected our
position in recent weeks.

Adventure

The Adventure division is having another very good year. Sales are 68% up on
2004 equivalents and tour load factor increases have had a positive impact on
margins. On a like-for-like basis, the sales increase is +16%. Forward sales for
2006 are strong and demand in the sector remains buoyant.

The acquisition of Djoser, the Dutch market leader in adventure travel,
increased the size of the Adventure division by approximately 80%. Sales growth
during the period of our ownership has been +6% and Djoser's progress to date is
in line with our expectations.

The Sharm-el-Sheikh bombing in Egypt on 23 July primarily affected RegalDive.
Happily, all our customers were safely and rapidly accounted for and, whilst the
impact on RegalDive bookings may continue for some time, this will not
materially impact divisional profitability, given the size of this business. The
very wide spread of destinations offered by Explore and Djoser means that any
effect on the two main businesses in the division is expected to be marginal.

Camping

Camping sales are 8% down on 2004 but, with capacity cut by 12%, occupancy
levels have improved and high season has been filled at good yields.
In 2006, the cost base and capacity will be further reduced. Taking account of
mobile-home sale proceeds, net capital expenditure for Camping will be at modest
levels and the division is expected to once again be cash generative and make
good margins in 2006.

Outlook

The Board believes that the financial and trading prospects of the group in the
current financial year are satisfactory and that the group is well positioned to
respond to changing conditions and to exploit market opportunities.


Declarations:

Under paragraph 9.6.13(4) of the Listing Rules, Mr. Michel declares that he was
Chairman and Chief Executive (Vorstandsvorsitzender) of Energis-Ision AG as well
as Managing Director of both Energis Deutschland GmbH and Ision Sales & Services
GmbH. These entities, along with some subsidiary entities, were put into
administration on May 8th 2002 as a result of the decision by Energis Plc, the
ultimate parent company, to withdraw its letter of comfort and the funding
facility necessary to sustain them. Subsequently, Energis Plc itself went into
administration.  Mr. Michel was not a Director of Energis Plc. Mr Michel had
nothing further to declare in relation to paragraph 9.6.13 of the Listing Rules.
Mr. Michel has also notified the Company in accordance with Disclosure Rule
3.1.2(R) and section 324 of the Companies Act 1985 that he currently has a
beneficial interest in 1,000 ordinary 5p shares in Holidaybreak plc.


Enquiries:

Holidaybreak: [phone]
Richard Atkinson/Bob Baddeley

Brunswick [phone]
James Hogan / Lucie Anne Brailsford / Craig Breheny


Note to Editors

1. Holidaybreak (HBR.L) is listed on the London Stock Exchange. The UK's leading
operator of specialist holiday businesses, it sold 2.3m holidays in the year to
30 September 2004. Holidaybreak has three operating divisions: Hotel Breaks,
Adventure Holidays and Camping. Each is a market leader in its respective
specialist sector of the holiday industry, has multi-channel distribution and is
recognised for providing high standards of product and service quality. In
December 2004, Holidaybreak announced the acquisition of two market leading
Dutch holiday businesses: BRC, the on-line intermediary for short-stay leisure
hotel breaks, and Djoser, the market leading 'soft adventure' specialist. For
more information, please go to www.holidaybreak.co.uk.

2. The company expects to announce its full year results on Thursday 1st
December.


                      This information is provided by RNS
            The company news service from the London Stock Exchange