10th Feb 2005 14:30
Holidaybreak PLC10 February 2005 HOLIDAYBREAK PLC AGM Update Holidaybreak, the UK's leading operator of specialist holiday businesses, todayheld its AGM. After 18 weeks of the current financial year ending 30 September 2005,like-for-like sales, compared to the same point in 2004, are higher in twoof our divisions, Hotel Breaks and Adventure, whilst lower in Camping. TheHolidaybreak Group is once again expected to deliver double-digit margins, wellabove industry norms, and also generate positive cash. Sales for Hotel Breaks are 7% ahead of 2004 equivalents whilst Adventure hasconsolidated on a very strong start and is 22% higher. In both cases, thesefigures exclude the positive impact of the acquisitions announced in Decemberand referred to below. Our trading reflects continuing consumer trends, which wehave frequently referred to in the past, towards short-break and specialistholidays. Hotel Breaks is well placed to build on its impressive growth recordof recent years whilst Adventure's very strong trading figures put the divisionon course to achieve another excellent performance. Hotel Breaks and Adventure are the growth markets for the Group. We reinforcedour presence in these sectors in December with the acquisition of BRC (Bookit),an on-line intermediary for short-stay leisure breaks in the Netherlands, andDjoser, the leading Dutch 'soft adventure' holiday operator. The newly acquiredbusinesses are currently being integrated into the Group and, although it isearly stages, are performing in line with management expectations. Both enjoyhigh levels of consumer recognition in the Netherlands and are market leaders intheir sectors. They also have strong and committed management teams who will bestaying with their businesses. These acquisitions are both expected to be earnings enhancing* in the currentyear. They have helped accelerate the realignment of the Group's business ontoits high growth markets and this will continue in 2005. Hotel Breaks andAdventure now represent nearly two-thirds of the Group's activities. We expectfuture growth from these two divisions to increase further this proportion inthe medium-term whilst we ensure that Camping generates cash and profits at goodmargins. Camping sales to date are 9% lower than last year. This is in the context of an11% reduction in the number of mobile homes on our campsites in 2005 and 14%fewer tents. As bookings trend later, eventual sales are more difficult toforecast than has been the case in the past. The main overseas operationalcosts, which are depreciation and campsite fees, are now largely fixed. As aconsequence, the eventual outturn for the division is sensitive to sales revenueintake over the remainder of the season. We anticipate achieving operational andoverhead cost reductions in this division of at least £3m compared to 2004.Divisional management remains focused on stabilising occupancy rates, optimisingyields and maximising Camping's 2005 financial result. Camping's management team is already looking ahead to 2006. Capacity will onceagain be managed to achieve profitable utilisation levels, new e-commercedistribution channels will be further developed and costs will be subject tofurther ongoing rigorous review. The Tsunami in December affected only our Adventure Division and did not have amaterial impact on the group's financial or operational performance. Managementteams at Explore, Djoser and RegalDive reacted rapidly and effectively as eventsunfolded on Boxing Day, quickly accounting for all customers and then contactingclose relatives. To conclude, management in all parts of the business is focused on maximisingyields and optimising distribution, particularly through the internet, whichaccounts for over 30% of current Group sales and is growing rapidly. We continueto develop the business to benefit from consumer trends and have a positiveoverall view of prospects for the current year. \* This statement should not be taken to mean that the earnings per share of theGroup will necessarily match or exceed the historical reported earnings pershare of the Group and no forecast is intended or implied. Enquiries: Richard Atkinson / Robert Baddeley Holidaybreak +44 (0) 1606 787100James Hogan / Craig Breheny Brunswick +44 (0)20 7404 5959 Note to Editors Holidaybreak (HBR.L) is listed on the London stock market. The UK's leadingoperator of specialist holiday businesses, it sold 2.3m holidays in the 12business months to end-September. Holidaybreak has three operating divisions:Hotel Breaks, Adventure Holidays and Camping. Each is a market leader in itsrespective specialist sector of the holiday industry, has multi-channeldistribution and is recognised for providing high standards of product andservice quality. In December 2004, Holidaybreak announced the acquisition of twomarket leading Dutch holiday businesses, BRC, the on-line intermediary forshort-stay leisure hotel breaks and Djoser, the market leading 'soft adventure'specialist. For more information, please go to www.holidaybreak.co.uk. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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