Atkinson leaves Holidaybreak in strong position

Thursday, 05 Sep, 2005 0

Holidaybreak chief executive Richard Atkinson is to stand down after 30 years with the group.

He will be replaced after an “appropriate” handover period by former British Airways, Energis, Opodo and Deutsche BA executive Carl Michel.

The announcement came as Holidaybreak reported that its trading and financial outlook for the year – which ends on September 30 – are satisfactory despite the terrorist attacks in London, which impacted its hotel breaks business, and in Sharm El Sheikh, which hit bookings for Regal Dive.

Atkinson, who stressed Holidaybreak will continue to prosper with Michel at the helm, 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 remaining of the financial year, the business was market leader in its specialist sectors and was on target to deliver another solid financial performance, he added.

In its hotel breaks division, overall sales are 5% higher, largely due to the acquisition of Dutch online business Bookit. Like for like sales are up 1%.

It said the London bomb attacks hit bookings for the capital although many customers opted for an alternative destination, rather than cancelling altogether.

The company said RegalDive suffered a dip in bookings following the attacks in Sharm, which will continue for some time, although it will not materially impact profitability in its adventure division.

Sales, Holidaybreak said, were up 16% on a like for like basis and up 68% including Dutch adventure company Djoser.

The outlook for its camping division, which has endured a tough period, was also encouraging.

“Sales are down 8% but with capacity cut by 12%, occupancy levels have improved and high season has been filled at good yields,” a Holiday break statement said.

The cost base is expected to be reduced further in 2006.

Turning to Atkinson’s departure, chairman Bob Ayling said it was a sad moment for the company.

“He began in the business in 1975, which was then providing holidays for less than 700 families,” said Ayling. “Holidaybreak is the UK’s leading operator of specialist holiday businesses, now selling nearly three million holidays annually.”

Report by Steve Jones