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Holidaybreak profits up to £32m
Holidaybreak achieved record pre-tax profits rise by £4 million to £32 million on 8% increased turnover at £303 million in the year ending September.
The company’s businesses, which include short break firm Superbreak, camping specialists Eurocamp and Keycamp and adventure outfits Explore and RegalDive, claimed industry-leading operating margins of more than 10% and sold three million holidays in the 12 months – up from 2.3 million the previous year.
Hotel breaks and adventure travel now account for two-thirds of the group’s sales. The group sold 2.4 million hotel breaks, 523,000 camping and mobile home holidays and 60,300 adventure holidays in 2004-05.
Camping sales dropped from 570,000 the previous year, with operating profits down 5.4% to £13 million following a 12% reduction in capacity. Holidaybreak also plans to further cut camping capacity by 16% next year, saying: “Our marketing is foscused on widening the appeal as well as capitalising on the shift from ferries to low cost airlines.”
City analysts think the camping division is likely to be sold off in the future.
The company described current trading as “in line with our expectations”.
A statement said: “We are pleased with performance in the UK and the Netherlands although the London short-breaks market remains subdued.
“Once again, the group expects to deliver industry-leading margins, generate strong cash returns and exploit market opportunities.”
The group admitted the after effects of the London bombings in July continued to dampen the short breaks business to the capital.
Current trading shows overall sales down 3%, with camping sales down 12%, hotels breaks down 4% and adventure travel up 9%.
Chief executive Carl Michel, the former boss of Deutsche BA who joined in September, said Holidaybreak was becoming more of an online buisness.
“While we continue to base our sales on a multi-channel distribution approach to reflect the different ways in which consumers wish to access our products, I am particularly pleased the internet is growing strongly in all divisions,” he said.
Report by Phil Davies
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