1st Dec 2005 07:00
Holidaybreak PLC01 December 2005 1 December 2005: For immediate release HOLIDAYBREAK PLC Results for the year ended 30 September 2005 Record headline profit before tax* performance driven by international growth. Holidaybreak, the European specialist holiday group, today announces preliminaryresults for the year ended 30 September 2005. Financial highlights 2005 2004 £m £m Group turnover 303.0 281.6Operating profit* 35.8 31.4Operating margins* 11.8% 11.1%Headline profit before tax* 32.0 28.0Statutory profit before tax 19.4 17.4Headline EPS* 48.8p 44.0pFree cash flow** 38.1 17.0Net debt 22.9 12.5Dividend per share 26.6p 24.2p * Before goodwill amortisation £3.9m (2004: £2.7m) and impairment £8.7m (2004:£5.3m) and exceptional costs in 2004 only (£2.6m). ** Free cash flow is operating cash flow after capital expenditure (£8.6m (2004:£11.0m)) net of disposals (£6.2m (2004: £4.3m)) and after interest and taxpayments (£11.4m (2004: £11.6m)). Summary • This represents the Group's best ever performance, in terms of headline profit before tax* and free cash flow**. • Holidaybreak's businesses sold 3.0m holidays (2004: 2.3m) in the year. They are market leaders and enjoy industry-leading margins. • The diversity of Holidaybreak's businesses and its flexible cost structure helped deliver an excellent performance overall. There was no material impact on Group financial performance by the terrorist attacks in London and other events, such as the tsunami and bombing in Egypt. • 2005 sales up 8% at £303.0m (Hotel Breaks: +5%; Adventure Travel: +67%; Camping: -8%). Hotel Breaks and Adventure Travel Divisions now account for two-thirds of the Group's sales (total transaction values) on an annualised basis. • Bookit and Djoser, the Dutch businesses acquired in December 2004 and January 2005 respectively, have performed well, ahead of management expectations. Integration of the newly acquired businesses has gone smoothly. They were both earnings enhancing in the year. 22% of revenues now come from the Benelux area. This is expected to grow to approximately 30% in the current year. • The Camping Division has delivered cash at good margins. Capacity will be reduced again in 2006, this time by around 16%, which has resulted in the remaining Eurosites goodwill of £8.7m being impaired in the year. • Current trading is in line with our expectations. Group sales to date -3% (Hotel Breaks currently -4%; Adventure Travel +9%; Camping -12%). The after effects of the London bombings continue to dampen the London hotels' short-breaks business. The Board believes that the financial and trading prospects of the Group for the current year remain good. Once again, the Group expects to deliver industry-leading margins and generate strong cash returns. Carl Michel, Chief Executive, said: "These results represent an excellentperformance in what has been an eventful year in our markets. I have been withHolidaybreak for three months now and I am pleased with what I have found. Thisis a great business with margins most other travel companies simply cannotmatch. The Group has the financial strength to build on changing market trendsand we will use this to grow organically and by acquisition. In particular, weintend to pursue selected international growth opportunities in attractivemarkets which have the potential to deliver good financial returns." "Current trading is in line with our expectations. We are pleased withperformance in the UK and the Netherlands although the London short-breaksmarket remains subdued. The Group is confident of achieving another satisfactoryperformance." Enquiries: Carl Michel / Bob Baddeley Holidaybreak1 December +44 (0) 20 7404 5959Thereafter +44 (0) 1606 787100 James Hogan / Craig Breheny / Lucie Anne Brailsford Brunswick +44 (0) 20 7404 5959 Note to Editors Holidaybreak (HBR.L) is listed on the London Stock Exchange. The Europeanspecialist holiday group sold 3.0m (2004: 2.3m) holidays in the year ended 30September 2005. Holidaybreak has three operating divisions: Hotel Breaks,Adventure Travel and Camping. Each is a market leader in its respectivespecialist sector of the European 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 on the Group, please go to www.holidaybreak.co.uk. CHAIRMAN'S STATEMENT Introduction After a year of considerable change, Holidaybreak is now clearly positioned as agrowing European specialist holiday group. In the year to 30 September 2005, wesold 3.0m holidays (2004: 2.3m), increased headline profits* and generated£38.1m of free cash flow**. We also made two successful acquisitions in theNetherlands. I am delighted to report that this represents the Group's best ever performance,in terms of headline profit before tax* and free cash flow**. Once again ouremployees have displayed commitment, enthusiasm and skill in all parts of thebusiness. I thank them for all they have done in 2005. We have the strength of management, commitment and financial resources to beeven more successful in the years to come. The executive management isconcentrating on margin performance, good return on investment and thegeneration of cash. The Board remains focused on the allocation of capital, themanagement of risk and the performance of the executive management in theinterests of the Company and its shareholders. Group results For the year ended 30 September 2005, pre-tax profits (before goodwillamortisation and impairment) were £32.0m (2004: £28.0m) on turnover of £303.0m(2004: £281.6m). Headline earnings per share* were 48.8p (2004: 44.0p). Operating profit* was £35.8m (£31.4m). On a like-for-like basis, excluding theimpact of acquisitions, existing activities made an operating profit* of £31.6m.The new acquisitions, Bookit and Djoser, both announced in December 2004,contributed combined operating profits* of £4.2m. All Holidaybreak's operations generated substantial cash. Operating cash inflowwas £52.0m, (2004: £46.3m). Net debt at 30 September 2005 was £22.9m (2004:£12.5m). The acquisitions of Bookit and Djoser, for a combined consideration of£39.6m, were financed from cash flow and new borrowings. Capital expenditure,net of disposals, was £2.4m (2004: £13.5m). Dividend The Board is recommending a final dividend of 19.35p (2004: 17.6p), payable on25 April 2006, to shareholders on the register on 31 March 2006, making a totalof 26.6p (2004: 24.2p) for the year. The 10% increase in the annual dividend reflects the Board's confidence infuture prospects. The Group is financially strong and has a clear strategy togrow, both organically and by acquisition, adapting to and exploiting therapidly changing market place. The Board intends to continue to pay ordinarydividends that are appropriate in light of the growth prospects and theunderlying performance of the Group. Acquisitions Holidaybreak increased its presence in the growing leisure break and 'softadventure' sectors and also in European travel markets with the acquisition inDecember 2004, of Bookit, an on-line intermediary for short-stay holidays in theNetherlands, and the acquisition in January 2005 of Djoser, the leading Dutchadventure holiday operator. The combined consideration for the two acquisitionswas £39.6m. Djoser and Bookit enjoy high levels of consumer recognition in the Netherlandsand are market leaders in their sectors. Both companies have experienced andcommitted management teams who are staying with the businesses. Integration ofthe newly acquired businesses has gone smoothly. They are both performing welland ahead of management expectations. Both were earnings enhancing* in the year. Management and Board changes Carl Michel joined Holidaybreak as its new Chief Executive on 5 September. Hesucceeded Richard Atkinson, who retired after 30 years with the Group. Carl, 42,has extensive management experience in the international travel sector and hasworked for a range of companies, including McKinsey, British Airways, DeutscheBA (where he was CEO) and Opodo. I am delighted that Carl joined Holidaybreak.He is a well-known, senior executive in the travel industry, with outstandingstrategic skills and strong European credentials. I believe that he has thecapabilities to take Holidaybreak through its next phase of development. At the same time, the departure of Richard Atkinson after 30 years with thebusiness was a significant moment for us. Richard began in the business in 1975,which was then providing holidays for less than 700 families. Holidaybreak nowsells 3 million holidays annually. We have three profitable, cash generativedivisions, attractive margin performance and good trading results. Richard canbe justifiably proud of all this and he retired with our immense gratitude andgood wishes. James Greenbury, 44, joined the Group as a non-executive director with effectfrom 1 January 2005. With his strategic skills and his experience of the servicesector, he has proved a valuable addition to the team as Holidaybreak seeks togrow by investment in its current businesses and by acquisition. Clive McLintock, retired as a non-executive director on 31 December 2004. Clivemade a strong and valuable contribution during his time on the Board and I thankhim for all he did for the company. Outlook Current trading is in line with our expectations. We are pleased withperformance in the UK and the Netherlands although the London short-breaksmarket remains subdued. The Group is confident of achieving another satisfactoryperformance. The Board believes that the financial and trading prospects of theGroup for the current year are good. Once again, the Group expects to deliverindustry-leading margins, generate strong cash returns and exploit marketopportunities. Robert AylingChairman * Before goodwill amortisation £3.9m (2004: £2.7m) and impairment £8.7m (2004:£5.3m) and exceptional costs in 2004 only (£2.6m). ** Free cash flow is operating cash flow after capital expenditure (£8.6m (2004:£11.0m)) net of disposals (£6.2m (2004: £4.3m)) and after interest and taxpayments (£11.4m (2004: £11.6m)). CHIEF EXECUTIVE'S REVIEW Introduction Holidaybreak's results for 2005 demonstrate both the flexibility and resilienceof the Group in a rapidly changing market place. This is an encouragingperformance in what has been an eventful year. I have been with Holidaybreak forthree months now and I am pleased with what I have found. This is a greatbusiness with margins most other travel companies simply cannot match. Theenthusiasm and dedication of the staff is impressive and my predecessor, RichardAtkinson, handed over a Group well placed to grow. Hotel Breaks Hotel Breaks is the largest division in the Group, selling 2.4m holidays in 2005(2004: 1.7m). We provide domestic and overseas short-break holidays primarilyfor UK and Dutch consumers. Despite the London bombings in July, the divisionenjoyed a robust performance with operating profit* up 22% to £17.7m (2004:£14.5m). For the UK businesses, operating profit* increased by 3% to £14.9m(2004: £14.5m) on turnover that was flat at £120.9m. The results were dampenedby the after effects of the London bombings in July. Overall divisional operating margins* were up from 12.0% last year to 14.0%primarily as a result of the Bookit acquisition. Bookit records commissionsreceivable rather than total transaction value of sales. The division continuesto be cash generative with limited capital expenditure and very high return oncapital employed. In 2005, it generated £14.9m free cash flow** (2004: £16.9m). The revenue mix of the UK business has shifted to reflect ongoing businessdevelopment, with hotel breaks in Europe now at 13% of revenue, up from 7.0% in2004. By contrast, the London hotel leisure market has been softer and is onlyslowly recovering on the back of destination marketing campaigns and a number ofnew theatre shows including Sinatra, Billy Elliot and Blue Man Group. Bookit, the Dutch online hotel and self-catering reservations business,continues to make excellent progress. The business consists of three mainbrands. Weekendjeweg.nl, the core brand, offers hotel accommodation for twonight weekend stays primarily in the Netherlands, Belgium and Germany.Nachtjeweg.nl provides overnight accommodation while Bungalows.nl, a successfulinitiative in only its second year, offers self-catering accommodation inholiday parks. This year, Bookit launched a new brand Hotelletje.nl offeringsmall family-run hotels. Bookit is the third largest tour operator in theNetherlands by number of customers. As expected, Hotel Breaks' overall sales intake for 2005/06 is currently about4% down on same period in 2004/05, mainly reflecting weakness in London sinceJuly. However, the extremely flexible cost base of the Hotel Breaks Division(room allocations are on a non-committed basis) means management is confidentthat it will deliver a satisfactory financial performance in the current year. Adventure Travel The Adventure Travel Division consists of three businesses: Explore, Djoser andRegalDive. We sold 60,300 adventure holidays in 2005 (2004: 41,000). The division has had another impressive year. Turnover was up 67% to £62.6m(2004: £37.4m) and operating profit* increased by 63% to £5.1m (2004: £3.2m).The operating margin* was 8.2% (2004: 8.4%) and £12.7m of free cash flow** wasgenerated (2004: £2.8m).The acquisition of Djoser, the Dutch market leader in adventure travel,increased the size of the Adventure Travel Division by approximately 60%. Djoserprovides escorted tours for Dutch and Belgian consumers to eighty-five countriesand is the largest adventure holiday operator in mainland Europe. Explore is the UK market leader in the 'soft adventure' sector. The Exploreprogrammes, which are targeted at specific groups of consumers, have performedstrongly during the year; most notably Explore Family Adventures grew by 100%and Explore Cycle by 70%. New tours and destinations have been added to expandour core product offering. We continue to benefit from the growing aspirationsof travellers to be bolder and push their own limits. RegalDive has maintained a solid trading performance and remained on budget,despite the bombing in Sharm El Sheikh in Egypt. The business is successfullyexpanding outside of Red Sea destinations. Overall 2006 sales intake for the Adventure Travel Division is currently 9%higher than 2005. Camping The Camping Division sold 523,000 European camping and mobile-home holidays in2005 (2004: 570,000). Our main brands, Eurocamp and Keycamp, remain sectorleaders and are sold in numerous European markets: the UK, Eire, theNetherlands, Belgium, Germany, Denmark, Switzerland, Austria and Poland. Turnover in Camping was £113.7m (2004: £123.2m) and operating profit* declinedby 5.4% to £13.0m (2004: £13.7m). Operating profit* margin improved to 11.4%(2004: 11.1%) and remains well ahead of industry average. The division generated£21.9m of free cash flow** (2004: £8.9m). The trend towards later bookings by customers continues. The division remains arelatively high fixed cost business. It is concentrating on managing high seasonyields more successfully by holding prices and resisting discounting in pursuitof earlier bookings. Capacity cuts in areas of weaker demand have supported thisrevenue management strategy. Overall accommodation capacity (tents andmobile-homes) in 2005 was reduced by 12% and in 2005/06 we intend to reduce itby 16%. Our marketing is focused on widening the appeal as well as capitalising on theshift from ferries to low cost airlines. Whilst we are at a fairly early stagein the booking season, to date current 2006 sales intake for the CampingDivision is 12% lower than 2005, reflecting the planned lower capacity on sale.We are making good progress in selling low-season holidays. Strategy Our focus remains on our cash generative businesses, all of which are stronglyplaced in the markets they occupy. We command, by virtue of our marketleadership and the strength of relationships with suppliers and customers alike,industry-leading operating margins* of over 10% at the Group level. We continue to increase our presence in the wider continental European market.During 2005 we have successfully acquired and integrated two businesses, Bookitand Djoser, in the Netherlands. The impact of these is substantial; weanticipate that for the year ahead the share of revenues from the Benelux areawill be approximately 30% on a total transaction value basis versus only 12% in2004. The Camping Division's share of annualised total transactions values hasfallen from 44% last year to 34% this year. We are also becoming more of anonline business. While we continue to base our sales on a multi-channeldistribution approach to reflect the different ways in which consumers wish toaccess our products, I am particularly pleased that the internet is growingstrongly in all divisions. Since taking on the role of Chief Executive in September, I have been enormouslyimpressed by the determination, relationship-building and commercial acumen ofour managers. Our financial strength gives us the opportunity to consider arange of options to strengthen our specialist portfolio. We need to consolidateour market leadership in 'soft adventure' tours and grow the sector. We will beinvesting more in our online capability in all divisions. While we grow your company, we are also mindful of our balance sheet structure.We continue to review the investment needs of the group, targeting anappropriate return on invested capital. Going forward, I am keen to exploit more opportunities for sharing best practiceacross the Group and, where appropriate, to identify sensible acquisitions thatadd to our growth prospects, our online presence, our geographical spread andthat have the potential to deliver good financial returns. All this will be donewhile maintaining our focus on our existing operations to continue their strongcash generation and industry-leading margins. Carl MichelChief Executive * Before goodwill amortisation £3.9m (2004: £2.7m) and impairment £8.7m (2004:£5.3m) and exceptional costs in 2004 only (£2.6m). ** Free cash flow is operating cash flow after capital expenditure (£8.6m (2004:£11.0m)) net of disposals (£6.2m (2004: £4.3m)) and after interest and taxpayments (£11.4m (2004: £11.6m)). FINANCE DIRECTOR'S REVIEW In the year to 30 September 2005 Holidaybreak plc increased headline profitsbefore tax* to £32.0m (2004: £28.0m) and invested £39.0m (net of £0.6m cashacquired) in acquiring Bookit and Djoser. Despite this expenditure, net debtincreased by only £10.4m to £22.9m as we continued to benefit from substantialcash generation in all businesses. Group Profit and Loss Account Turnover in 2005 was up 7.6% on 2004 at £303.0m (2004: £281.6m). Operatingprofit before goodwill amortisation (£3.9m) and impairment (£8.7m) was 14.1%higher than 2004 at £35.8m. The acquired businesses contributed turnover of£25.0m and operating profit* of £4.2m. On a like-for-like basis, excluding theacquisitions, turnover was 1% below 2004 at £277.9m and operating profit*marginally higher at £31.6m (2004: £31.4m). During the year, we sold two freehold properties for £3.0m, realising a profitof £0.6m. Keycamp had previously relocated from freehold premises in Sutton,Surrey and Explore Worldwide will be relocating to new freehold premises at acost of £3.5m at the end of 2005. The Group's net interest charge increased from £3.3m in 2004 to £4.4m. Interestcover* decreased from 9.4 times in 2004 to 9.3 times in 2005. The Group incurredcosts of £0.5m in respect of renegotiating and increasing the existing borrowingfacilities to finance the acquisitions. The overall tax charge, including full provision for deferred tax, was £7.6m andthe tax rate of 38.9% was higher than 2004 (28.8%). This increase is due togoodwill impairment, referred to below, being substantially non-deductible forUK corporate tax. The headline tax rate, before goodwill amortisation andimpairment was 28% (2004: 26.7%). Headline earnings per share* were 48.8p (2004: 44.0p). The proposed final dividend of 19.35p per ordinary share represents an increaseof 10% over 2004 and gives a total dividend for the year of 26.6p per ordinaryshare (2004: 24.2p). Dividend cover* is 1.8 times. Goodwill Impairment The Board has reviewed the carrying value of goodwill arising from theacquisition of Eurosites in 2002 and, as a result, an impairment charge of £8.7mhas been made in these accounts. All the goodwill relating to Eurosites has nowbeen amortised or impaired. Capital Expenditure Capital expenditure (net of receipts from disposals) in the year to 30 September2005 was £2.4m (2004: £13.5m). Mobile-homes (£4.3m before disposals) accountedfor the bulk of the expenditure. Accommodation capacity will again be reduced bya further 16% in 2006 and hence we expect a further reduction in the level ofthe Camping Division's net capital expenditure in the year to 30 September 2006.Expenditure on Explore Worldwide's new freehold property will be £3.5m. Overallnet capital expenditure for the Group for 2006 will be approximately £5.5m netof mobile-home disposals of £3.6m. The Group's depreciation policy is to write down the cost of mobile-homes to anestimated residual value over their projected economic life. Disposal proceedsof £3.1m in respect of mobile-homes sold at the end of their useful liferesulted in a loss of £0.2m. In order to extend their economic life, we continue to source mobile-homes ofhigher specification and to refurbish existing units. Cash Flow The Group's net borrowings at 30 September 2005 were £22.9m, compared to £12.5min 2004. Cash flow from operating activities was £52.0m, another strongperformance. Available bank facilities (£140.0m as at 30 September 2005) are sufficient tomeet the working capital, investment and bonding requirements of the Group. Tofinance the acquisitions, the Group's committed five year borrowing facilitieswere increased by £36.7m to £140m. Due to the highly seasonal nature of CampingDivision's cash flow, headroom under these facilities was £24.4m at the end ofApril 2005 when borrowings were at their maximum. In addition to thesefacilities we have hire purchase agreements with various UK financialinstitutions to finance the purchase of mobile-homes. Foreign Currency and Interest Rate Risk Management The Group's transactional foreign currency exposures arise from the sales ofholidays in overseas markets and the costs of operating overseas, particularlyaccommodation and travel. Currency revenues, principally Euros and US Dollars,represent approximately 24% of total Group revenues. Currency outflows accountfor 32% of all Group costs. The Group's policy is to hedge anticipated currencyexposures and we have entered into forward contracts in respect of our expectedtrading cash flows for the next twelve months. The Group's exposure to interest rate fluctuations on its borrowings is managedby using interest rate swaps. At 30 September 2005, the proportion of theGroup's gross borrowings at fixed and capped rates was 52% and the average ratewas 5.4%. The gross cash position was fully floating. International Financial Reporting Standards We will be required to adopt International Financial Reporting Standards (IFRS)when preparing Group accounts for the year ended 30 September 2006. Inpreparation for this, all IFRS requirements have been reviewed in detail toassess their likely impact on our reported results and the actions required tocollect the necessary data. Data has been collected on a dual basis (UK GAAP andIFRS) during 2004/5 to enable the restating of the opening "transition" balancesheet at 1st October 2004 and the results for the year ended 30th September 2005under IFRS. We will be issuing an update to the market before 31 March 2006. It is not possible to assess with certainty all the effects of the transition toIFRS. However, we believe that the major areas of impact on our retained profitand shareholders' funds will be: * Share-based payments, whereby the income statement will include an annual charge based on the fair value of awards made to employees. A new Long Term Incentive Plan is proposed and details will be set out in a circular to shareholders prior to the AGM in March 2006. It has not yet been approved by shareholders and shares have yet to be issued under the scheme. The impact on results will be monitored as shares are issued and options exercised under existing share option schemes. * Capitalised goodwill, whereby the carrying value will be subject to annual impairment reviews, with no amortisation charge. The charge for goodwill amortisation and impairment in 2005 was £12.6m. * Open forward foreign exchange contracts which will be valued at year-end market rates, with any gains or losses charged to the income statement. * Proposed dividends will be recognised in the accounting period in which they are declared. Accordingly, the Group will reverse the accrual for its final dividend (£9.2m) and report it in the consolidated IFRS accounts for 2006. Bob BaddeleyFinance Director * Headline profits, headline EPS, interest and dividend cover are stated beforegoodwill amortisation and impairment of £12.6m. Holidaybreak plc - Consolidated profit and loss accountYear ended 30 September 2005 2005 2004 Total Existing Continuing Notes operations Acquisitions Operations £'000 £'000 £'000 £'000 Turnover 1 277,949 25,034 302,983 281,557Cost of sales (208,968) (14,226) (223,194) (209,216) __________ __________ __________ __________Gross profit 68,981 10,808 79,789 72,341 Net operatingexpenses (48,545) (8,049) (56,594) (51,617)-------------- ----- -------- -------- -------- --------Operating profitbefore goodwillamortisation andimpairment andexceptional costs 1 31,605 4,209 35,814 31,380 Goodwill amortisation (2,431) (1,450) (3,881) (2,735) Goodwill impairment (8,738) - (8,738) (5,276) Exceptional costs - - - (2,645)-------------- ----- -------- -------- -------- -------- __________ __________ __________ __________Operating profit 20,436 2,759 23,195 20,724 __________ __________ Profit on sale oftangible fixedassets 579 - __________ __________Profit on ordinaryactivities beforeinterest 23,774 20,724 Interest receivable 1,237 1,097 Interest payable andsimilar charges (5,611) (4,430) __________ __________Profit on ordinaryactivities beforetaxation 19,400 17,391 Tax on profit onordinary activities (7,561) (5,014) __________ __________Profit on ordinaryactivities aftertaxation 11,839 12,377 Dividends paidand proposed 2 (12,579) (11,478) __________ __________Retained (loss)profit for the year (740) 899 __________ __________ Earnings per ordinary share Headline earningsper ordinary share 48.8p 44.0pBasic earnings perordinary share 25.1p 26.5pDiluted headlineearnings perordinary share 48.5p 43.7pDiluted basicearnings perordinary share 24.9p 26.7p __________ __________ Holidaybreak plc - Consolidated statement of total recognised gains and lossesYear ended 30 September 2005 2005 2004 £'000 £'000 Profit for the financial year 11,839 12,377Gain on foreign currency translation 195 108 __________ __________Total gains and losses recognised relatingto the year 12,034 12,485 __________ __________ Holidaybreak plc - Consolidated balance sheet30 September 2005 2005 2004 £'000 £'000Fixed assetsIntangible assets 62,280 36,227Tangible assets 62,904 70,559Investments 15 15 __________ __________ 125,199 106,801 __________ __________Current assetsAssets held for disposal 3,283 3,526Debtors 23,737 20,833Cash at bank and in hand 50,375 31,363 __________ __________ 77,395 55,722 __________ __________Creditors: amounts falling due within one year (146,562) (90,769) __________ __________Net current liabilities (69,167) (35,047) __________ __________Total assets less current liabilities 56,032 71,754Creditors: amounts falling due after more than oneyear (11,588) (29,136)Provisions for liabilities and charges (6,072) (6,122) __________ __________Net assets 38,372 36,496 __________ __________ ============ ============ Capital and reservesCalled up share capital 2,416 2,381Share premium account 36,879 34,427Other reserves (3,775) (3,709)Profit and loss account 2,852 3,397 __________ __________Equity shareholders' funds 38,372 36,496 __________ __________ ============ ============ Holidaybreak plc - Consolidated cash flow statementYear ended 30 September 2005 2005 2004 £'000 £'000 £'000 £'000Net cash inflow fromoperating activities 51,986 46,274(note 3)Returns on investments andservicing of financeInterest and other 1,369 1,334investment income receivedInterest paid (4,610) (4,264)Interest element of hire (1,142) (1,103)purchase payments __________ __________ (4,383) (4,033)TaxationUK corporation tax paid (5,043) (6,580)Overseas tax paid (1,980) (961) __________ __________ (7,023) (7,541)Capital expenditurePurchase of own shares (66) (738)Payments to acquire tangible (8,589) (11,040)fixed assetsReceipts from sale of 6,178 4,300tangible fixed assets __________ __________ (2,477) (7,478)Acquisitions and disposalsPurchase of businesses andsubsidiary (39,030) -undertakings (net of cashacquired)Equity dividends paid (11,727) (10,674) __________ __________Cash (outflow) inflow before (12,654) 16,548financingFinancingIssue of ordinary share 2,295 1,005capitalNew loans 44,830 -Repayment of borrowings (12,495) (11,862)Capital element of hire (7,156) (7,767)purchase payments __________ __________ 27,474 (18,624) __________ __________Increase (decrease) in cash 14,820 (2,076)in the year __________ __________ ============ ============ NOTES 1. Segment information 2005 2004 £'000 £'000 ------------------------------- --------- ---------Group turnover by geographical origin was as follows: United Kingdom 230,996 230,036Ireland 7,394 8,582Netherlands and Belgium 46,216 22,245Germany, Switzerland and Austria 12,524 15,586Others 5,853 5,108 __________ __________ 302,983 281,557 __________ __________ === ============ ============ Group turnover and operating profit before goodwill amortisation and impairmentand exceptional operating costs by class of business was as follows: Turnover Operating profit before goodwill amortisation and impairment and exceptional costs 2005 2004 2005 2004 £'000 £'000 £'000 £'000----------- --------- --------- --------- ---------Hotel 126,659 120,895 17,680 14,487BreaksAdventureTravel 62,581 37,417 5,138 3,160Camping 113,743 123,245 12,996 13,733 __________ __________ __________ __________ 302,983 281,557 35,814 31,380 __________ __________ __________ __________ ============ ============ ============ ============ 2. Dividends paid and proposed on equity dividends 2005 2004 £'000 £'000 --------- ---------(Over) under provision in respect of final dividend (27) 27Interim dividend paid of 7.25p per ordinary share(2004 - 6.6p) 3,444 3,140Final dividend proposed of 19.35p per ordinary share(2004 - 17.6p) 9,233 8,381Dividends paid and proposed in respect of investmentin own shares (71) (70) __________ __________ 12,579 11,478 __________ __________ ============ ============ If approved by shareholders, the proposed final ordinary dividend will be paidon 25 April 2006 to those ordinary shareholders on the register on 31 March 2006and will absorb £9,233,000. 3. Reconciliation of operating profit to operating cash flow 2005 2004 £'000 £'000 -------------------------------- --------- ---------Operating profit 23,195 20,724Depreciation charges and amortisation and impairmentof goodwill 26,269 23,144(Increase) decrease in debtors (1,579) 1,144Increase in creditors 4,101 1,262 __________ __________Net cash inflow from operating activities 51,986 46,274 __________ __________ ============ ============ 4. Reconciliation of net debt 2005 2004 £'000 £'000 ----------------------------- --------- --------Increase (decrease) in cash in the year 14,820 (2,076)Cash (inflow) outflow from (increase) decrease indebt and lease financing (25,179) 19,629 __________ __________Change in net debt resulting from cash flows (10,359) 17,553New hire purchase contracts - (6,734)Net debt at beginning of year (12,534) (23,353) __________ __________Net debt at end of year (22,893) (12,534) __________ __________ ============ ============ 5. Non-statutory accounts The financial information set out above does not constitute the Company'sstatutory accounts for the years ended 30 September 2005 or 2004, but is derivedfrom these accounts. Statutory accounts for 2004 have been delivered to theRegistrar of Companies and those for 2005 will be delivered following theCompany's Annual General Meeting. The auditors have reported on those accounts;their reports were unqualified and did not contain a statement under section 237(2) or (3) of the Companies Act 1985. The preliminary announcement has been prepared in accordance with applicableUnited Kingdom accounting standards under the historical cost convention. Theprincipal accounting policies of the Group have remained unchanged from thoseset out in the Group's 2004 Annual Report and Financial Statements. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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