Trading Statement

Holidaybreak PLC 14 September 2007 14 September 2007: For immediate release HOLIDAYBREAK PLC Pre-close trading update Holidaybreak, the European specialist holiday group, today releases its normal trading update prior to the end of its current financial year Summary Holidaybreak continues to perform well. The Board believes that the Group's financial and trading prospects for the financial year ending 30 September 2007 remain satisfactory. Holidaybreak expects to again deliver industry-leading margins. Following the recent acquisition of PGL for £100m, year end net debt will be substantially higher than at the previous year end, as anticipated. Given the strength of its balance sheet and its cash generation, Holidaybreak remains well positioned to grow its operations, both organically and by acquisition. Carl Michel, Chief Executive, said: "With two weeks to the end of our current financial year, Holidaybreak remains on target to perform well. The poor summer weather was generally helpful to our businesses, driving late bookings to Camping. We are particularly pleased with the progress being made at PGL, our recent acquisition. We are market leaders in our specialist sectors. Looking ahead, there are several possible acquisitions in the pipeline and we will continue to look at all the opportunities to grow our expanded portfolio of brands within the Holidaybreak group." Trading update As we approach the end of the financial year to 30 September 2007, Holidaybreak is again expected to deliver industry-leading margins. The diversity of Holidaybreak's businesses and their flexible cost structure gives the Group robustness. Hotel Breaks Hotel Breaks' overall sales intake for 2007 is currently 7% above 2006 equivalents. London continues to perform strongly on the back of strong theatre and exhibition demand. We have benefited from the inclusion of West End Theatre Bookings (acquired in January) and this has driven our 'packaged' share from 27% to 40%. Adventure Travel The Adventure Travel Division looks set to report on another good year. Sales are 4% up on 2006 equivalents. Results were however hit by geographical events the Middle East throughout the year. The increase in air passenger duty had a modest impact. Camping Camping sales are level with last year with capacity cut by 4%, a pleasing performance. Occupancy has improved and high season has been filled at good yields. In particular, we have seen good growth in Ireland and had a successful late booking campaign in the U.K. as a result of the poor summer weather. Education The Education division was created following the acquisition of PGL in the summer. Trading continues to be strong. Sales for the current year are 13% ahead of 2006 equivalents and 18% ahead for 2008. Adventure centres are already 85% sold for 2008. Interest The acquisition of PGL increased the Group's borrowings. The Group's net interest costs in the next financial year will therefore be higher. Outlook The Board continues to expect to achieve a satisfactory outcome for the full year 30 September 2007. It believes that the Group is well positioned to respond to changing conditions and to exploit market opportunities. Management continues to review acquisition opportunities and deliver industry leading margins. Enquiries: Holidaybreak: +44 (0)1606 787100 Carl Michel / Bob Baddeley Brunswick +44 (0) 20 7404 5959 James Hogan / Craig Breheny / Ash Spiegelberg Note to Editors 1. Holidaybreak (HBR.L) is listed on the London Stock Exchange. The European specialist holiday group sold 3.1m holidays in the year ended 30 September 2006 (2005: 3.0m). Holidaybreak has four operating divisions: Hotel Breaks, Adventure Travel, Camping and Education. Each is a market leader in its respective specialist sector of the European holiday industry, has multi-channel distribution and is recognised for providing high standards of product and service quality. For more information, please go to www.holidaybreak.co.uk. 2. The company expects to announce its full year results on Thursday 29th November 2007. This information is provided by RNS The company news service from the London Stock Exchange
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