Trading Update
Holidaybreak PLC
5 September 2001
For Immediate Release: 5 September 2001
Holidaybreak plc
TRADING UPDATE
Holidaybreak plc ('HBR'), the provider of specialist holidays, today releases
a trading statement.
As the summer holiday season and our financial year draw to a close we take
the opportunity to provide an update on the trading performance of the three
businesses which make up the Holidaybreak Group.
The overall picture confirms expectations given in May, when we announced our
first half results. All our businesses have performed well. Camping will
achieve another year of profits growth, the Hotel Breaks division is enjoying
an outstanding year and Adventure Holidays have performed strongly in their
first full year of trading within the Holidaybreak Group.
Looking forward to the year end, we anticipate achieving a very satisfactory
trading result with an increase in overall revenues, on a like for like basis,
of approximately 10%, and, in the absence of unforeseen circumstances,
earnings per share of at least 38p (2000: 34.0p), before goodwill amortisation
and exceptional operating costs.
CAMPING
Camping will continue its consistent record of profits increases achieved in
recent years, thanks to a combination of volume growth, healthy occupancy
levels and a continuation of the shift in customer preferences away from tents
to more profitable mobile-home accommodation. Demand for holidays has held up
well during recent months, resulting in an excellent fill in July and August,
counterbalancing the effect of a small shortfall on targets for May and June.
Customer satisfaction for both our main brands, Eurocamp and Keycamp, which we
monitor assiduously, has shown an improvement on 2000 and, in the main, our
customers have also enjoyed better weather than last year.
Whilst bookings are now starting to come in for 2002, it is too early for
meaningful patterns to be established. The new campaign starts in earnest this
month.
HOTEL BREAKS
The extremely strong performance of our Hotel Breaks division has continued
unabated. Whilst domestic demand remains buoyant, there has been weak demand
for UK hotels from overseas visitors. The resulting plentiful capacity has
led to many attractive offers for UK customers. Our Superbreak and Hotel
Breaks brands have strengthened their dominant position in the retail agency
sector following the absorption of Rainbow Holidays, acquired at the end of
September 2000. On-line internet sales are increasing very rapidly and direct
bookings by telephone are also on a strong growth trend.
With lead times in the sector being generally short, only a small proportion
of bookings for 2001/2 have been received to date. However, the early
indications are that the positive booking trends are set to continue.
ADVENTURE HOLIDAYS
Both Explore Worldwide and Regal Holidays, the scuba diving specialist, have
continued to trade strongly, with late sales coming in well and at good
margins. Whilst there has been some disruption to Explore's programme due to
the political problems in Nepal and Sri Lanka, these will not have a major
impact on overall performance for the year.
Explore's 2002 brochure is due to be published in mid-October and will
feature, for the first time, over 300 different tour itineraries, to satisfy
the ever growing demand for unusual and adventurous holidays. Booking trends
for the first quarter of 2001/2 have been encouraging and we anticipate a
further boost, following the launch of a very extensive and most impressive
new website in August.
Internet marketing has long been a strength of Regal's business but their
website has also recently benefited from a major revamp. Regal's new brochure
has already been released and puts greater emphasis on opportunities for
diving holidays to worldwide destinations, as an alternative to the very
popular Red Sea region which currently accounts for 80% of sales.
INDEPENDENT INSURANCE
In June, we were obliged to seek replacement business risk insurance cover,
following the failure of Independent Insurance plc. This resulted in an
additional, non-recurring cost of £500,000 which will be shown as an
exceptional operating cost in the 2001 profit and loss account.
PRELIMINARY RESULTS ANNOUNCEMENT
The date of our Preliminary Results announcement for the year to 30th
September 2001 has been fixed for Monday 10th December.
FUTURE PROSPECTS
The continued profitable progress of the Holidaybreak Group has demonstrated
once again the quality of earnings of our specialist holiday businesses. All
have the resilient characteristics which will stand them in good stead should
economic conditions deteriorate. We will continue to invest in these
businesses and are confident that they will continue to grow and prosper.
For further information, please contact:
Holidaybreak plc Tel: +44 (0) 1606 787 100
Richard Atkinson, CEO
Bob Baddeley, Finance Director
Buchanan Communications Tel: +44 (0) 20 7466 5000
Tim Anderson / Nicola How
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