Last checked at 23 Jul 2008 07:00
23 July 2008: For immediate release
HOLIDAYBREAK PLC
Interim Management Statement
Holidaybreak, the European specialist holiday and activity group, today releases its interim management statement, two months before the end of its current financial year.
Holidaybreak continues to perform well in what is a more difficult trading environment, and the trading prospects for the current financial year remain broadly satisfactory. All divisions are showing growth in current year revenues booked as at July - overall the group is now booked at 93% of our target sales, with year to date sales up 4% on last year.
We remain in a sound financial position, following the recent completion of the refinancing and expansion of our borrowing facilities on competitive terms.
Education Division sales for 2007/8 are up 9%. For 2008/9, the division is 40% booked and showing a growth in sales of 3%. We have already achieved nearly £1m of advance bookings for 2008/9 for our recently acquired adventure centre at Windmill Hill in Sussex.
Hotel Breaks sales are up 3%. We have seen a noticeable slowing of recent intake in the UK, with London particularly affected. This is traditionally a quieter period for London and we have not benefited from last year's strong early sales to Joseph and Grease or the Tutankhamun and China Warriors exhibitions. There are indications of increased room availability and softening hotel room leisure rates, which should allow for better value propositions in the autumn.
Adventure Travel sales for 2007/8 are up 3%. This week sees the launch of Explore Tailormade, catering for individual adventure travellers. Sales intake for 2008/9 is currently up 4% and the division is around 20% booked.
Camping Division sales are up 1%, a strong performance on 5% lower capacity than last year. Once again we have benefited from robust late UK sales at healthy yields and good growth from our Dutch business where we benefit from the strengthening of the Euro.
Carl Michel, Holidaybreak Chief Executive, said:
"To date, the current financial year is broadly in line with our expectations, though we still have some key selling weeks remaining."
"Looking forward to the next financial year, the general economic environment may be more challenging, putting further pressure on disposable incomes. However, I remain pleased that the spread of our businesses across different travel segments and in various European markets provides us with trading resilience. The Group's two divisions which have visibility for 2008/9, Education and Adventure Travel, are both demonstrating healthy trading."
Enquiries:
Carl Michel / Bob Baddeley Holidaybreak +44 (0) 1606 787100
James Hogan / Craig Breheny / Oliver Hughes Brunswick +44 (0)20 7404 5959
Note to Editors
Holidaybreak (HBR.L) is listed on the London Stock Exchange. Holidaybreak has four operating divisions: Education, Hotel Breaks, Adventure Travel and Camping. 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
This information in this release is based on management information.
Certain statements in this announcement are forward looking statements. Such statements are based on current expectations and by their nature are subject to a number of risks and uncertainties that could cause actual results and performance to differ materially from any expected future results or performance expressed or implied by the forward-looking statement. The information does not assume any responsibility or obligation to update publicly or revise any of the forward-looking statements contained herein.
Holidaybreak's pre-close trading update is expected to be in the week ending 19 September 2008.