5th Sep 2005 07:03
Holidaybreak PLC05 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 anupdate 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 meansthe 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 coststructure limits the impact of unforeseen external events on the Group'sresults." "With four weeks to the end of the current financial year, Holidaybreak remainson target to deliver another solid financial performance. We are market leadersin our specialist sectors and our businesses enjoy industry-leading margins. Ourtwo Dutch acquisitions have increased the proportion of our activities in growthsectors and have given the group a better balance. I am confident thatHolidaybreak, with its diversity of resilient, quality businesses will continueto prosper. I would like to thank an excellent management team and all thecompany's employees for their contribution and support. I wish them well in thefuture." Chief Executive appointment Carl Michel today joins Holidaybreak as its new Chief Executive. He replacesRichard Atkinson, who will be retiring after an appropriate handover period.Mr. Michel, 42, has extensive management experience in the international travelsector and has worked for a range of companies, including McKinsey, BritishAirways, Deutsche BA (where he was CEO), Energis and Opodo.Bob Ayling, Chairman, said: "I am delighted that Carl has agreed to joinHolidaybreak. He is a well-known, successful senior executive in the travelindustry, with outstanding strategic skills and strong European credentials. Ibelieve that he has the capabilities to take Holidaybreak through its next phaseof development." "At the same time, the departure of Richard Atkinson after thirty years with thebusiness is a sad moment for us. He began in the business in 1975, which wasthen providing holidays for less than 700 families. Holidaybreak is the UK'sleading operator of specialist holiday businesses, now selling nearly threemillion holidays annually. We have three profitable, cash generative divisions,attractive margin performance and good trading results. Richard can bejustifiably proud of all that he has achieved and he is retiring with ourimmense gratitude and good wishes." Carl Michel said: "Holidaybreak is a great business and I am delighted to begiven this opportunity. Working with Bob Ayling and the management team, I amlooking 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 thefocus on yield optimisation and cash generation." Trading update After 48 weeks of the financial year ending 30 September 2005, Holidaybreak isagain expected to deliver double-digit margins and be cash generative. Whilstthe recent terrorist attacks in London and Egypt have had some impact on theHotel Breaks and Adventure divisions, the effect on the Group results for thecurrent financial year is expected to be limited. In the year to date, Hotel Breaks and Adventure have achieved like-for-likesales growth and, following recent acquisitions, together account for aroundtwo-thirds of Group revenues. As previously reported, sales are lower inCamping, 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 hoteland self-catering reservations business, acquired in December 2004, continues tomake excellent progress. Its sales growth during the period of our ownership hasbeen +39%. The terrorist attacks in London on 7 July and subsequent events have impacted onbookings for the capital but we have seen a recovery in overall intake figuresin recent weeks. We offer a very wide spread of locations, both within the UKand overseas, and many customers have opted for an alternative short breakdestination. We have also benefited from the very low level of fixed costs,which is a significant feature of the Hotel Breaks business. All hotel roomallocations are taken on an uncommitted basis and this has protected ourposition in recent weeks. Adventure The Adventure division is having another very good year. Sales are 68% up on2004 equivalents and tour load factor increases have had a positive impact onmargins. On a like-for-like basis, the sales increase is +16%. Forward sales for2006 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 growthduring the period of our ownership has been +6% and Djoser's progress to date isin 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 theimpact on RegalDive bookings may continue for some time, this will notmaterially impact divisional profitability, given the size of this business. Thevery wide spread of destinations offered by Explore and Djoser means that anyeffect 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%, occupancylevels have improved and high season has been filled at good yields.In 2006, the cost base and capacity will be further reduced. Taking account ofmobile-home sale proceeds, net capital expenditure for Camping will be at modestlevels and the division is expected to once again be cash generative and makegood margins in 2006. Outlook The Board believes that the financial and trading prospects of the group in thecurrent financial year are satisfactory and that the group is well positioned torespond to changing conditions and to exploit market opportunities. Declarations: Under paragraph 9.6.13(4) of the Listing Rules, Mr. Michel declares that he wasChairman and Chief Executive (Vorstandsvorsitzender) of Energis-Ision AG as wellas Managing Director of both Energis Deutschland GmbH and Ision Sales & ServicesGmbH. These entities, along with some subsidiary entities, were put intoadministration on May 8th 2002 as a result of the decision by Energis Plc, theultimate parent company, to withdraw its letter of comfort and the fundingfacility necessary to sustain them. Subsequently, Energis Plc itself went intoadministration. Mr. Michel was not a Director of Energis Plc. Mr Michel hadnothing 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 Rule3.1.2(R) and section 324 of the Companies Act 1985 that he currently has abeneficial interest in 1,000 ordinary 5p shares in Holidaybreak plc. Enquiries: Holidaybreak: +44 (0)1606 787100Richard Atkinson/Bob Baddeley Brunswick +44 (0) 20 7404 5959James Hogan / Lucie Anne Brailsford / Craig Breheny Note to Editors 1. Holidaybreak (HBR.L) is listed on the London Stock Exchange. The UK's leadingoperator of specialist holiday businesses, it sold 2.3m holidays in the year to30 September 2004. Holidaybreak has three operating divisions: Hotel Breaks,Adventure Holidays and Camping. Each is a market leader in its respectivespecialist sector of the holiday industry, has multi-channel distribution and isrecognised for providing high standards of product and service quality. InDecember 2004, Holidaybreak announced the acquisition of two market leadingDutch holiday businesses: BRC, the on-line intermediary for short-stay leisurehotel breaks, and Djoser, the market leading 'soft adventure' specialist. Formore information, please go to www.holidaybreak.co.uk. 2. The company expects to announce its full year results on Thursday 1stDecember. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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