Last checked at 23 Sep 2009 07:00
Wednesday 23 September 2009: For immediate release
HOLIDAYBREAK PLC
Pre-close trading update
Holidaybreak, the education, leisure and activity travel group, today releases its pre-close trading update ahead of the end of its current financial year on 30 September 2009.
Current trading and outlook
The Group is performing well, given the current economic environment, and expects to meet management expectations for the full year. It continues to manage its borrowings carefully with year-end net debt expected to be approximately £130m.
The Group has begun to deploy the additional expansion capital it received following the completion of the rights issue in July 2009. On 18 September it completed the purchase of a 150 acre site at Liddington, Wiltshire. The site, formerly a training centre and more recently a hotel and conference centre, will open as a PGL outdoor education centre in 2010.
Whilst performance in the Education Division should prove resilient, the Group remains focused on cash generation and cost control across its businesses in expectation of continued challenging trading conditions.
John Coleman, Executive Chairman said:
"The financial year has progressed broadly as expected and we anticipate meeting management expectations for the full year. Later bookings, particularly in the Camping Division, have come through as expected. Education, our largest division, continues to perform well and we are pleased with our site at Windmill Hill, which opened for business in May. In Hotel Breaks, we are seeing continued signs of an improvement in booking volumes, albeit on lower average transaction values. The previously announced restructuring programme for the Adventure Travel Division is progressing as planned."
"The Education Division's visibility for 2009/10 provides a healthy outlook. However, the global economic environment remains uncertain and we continue to manage the entire business tightly, with a focus on cash generation and cost control."
Divisional updates
Education Division sales for 2008/09 are up 11% (7% on a like-for-like basis), in line with management expectations. For 2009/10, the division is 62% booked. PGL outdoor education centres are 87% booked for 2009/10. Revenue growth for the centres for 2009/10 is currently running at approximately 4%. This has declined from the 6% reported in July as booking confirmations slow over the summer holidays. As teachers return to work and bookings are confirmed, we are seeing growth returning to the levels seen earlier in the year.
Hotel Breaks sales for 2008/9 are down 2%, an improvement from the trend previously announced. The division is now in a period of less challenging comparatives. The businesses continue to benefit from improved supplier offers (lower room rates and train fares) and better availability. Booking volumes are improving, albeit at lower average transaction values.
2008/09 sales for the Adventure Travel Division are up 4% but 3% down at constant exchange rates as we benefitted from stronger than expected late bookings, particularly in our Dutch business, Djoser. However for 2009/10 revenues for the division are currently down 20% and we believe trading conditions in the adventure travel market will remain difficult for at least the next 12 months.
With strong late bookings, in line with management expectations, Camping Division sales for 2008/9 are up 2% but 3% down at constant exchange rates, on 4% lower capacity than last year. Bookings for 2009/10 are behind 2008/09 comparatives but on low volumes, in line with management expectations.
There has been no material impact on our businesses arising from the swine flu pandemic.
Management
In July, Holidaybreak announced that Carl Michel, Group Chief Executive, had decided to stand down from the role for personal reasons unconnected with the business. Carl officially leaves the Board on 30 September 2009.
The process to find a replacement is continuing. As previously stated, John Coleman will remain in the role of Executive Chairman until a new Chief Executive is appointed.
Investor Day
Holidaybreak will be holding a seminar for investors and analysts on Thursday 24 September 2009 at the new Windmill Hill PGL centre. No new material trading information will be disclosed at that event.
Results
Holidaybreak expects to announce its full year results on 27 November 2009.
Enquiries:
Holidaybreak +44 (0) 1606 787100
John Coleman / Bob Baddeley
Brunswick +44 (0)20 7404 5959
holidaybreak@brunswickgroup.com
Catherine Hicks / Craig Breheny / Oliver Hughes
Note to Editors
Holidaybreak (HBR.L) is an education, leisure and activity travel group listed on the London Stock Exchange. The Group's four operating divisions have market leading positions in the UK and other major European markets, organising educational and activity trips for UK school children, short breaks in the UK and Europe, worldwide adventure holidays and mobile-home and camping holidays on sites throughout Europe. 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. These forward-looking statements are made only as at the date of this announcement. Except as required by law, Holidaybreak plc has no responsibility or obligation to update publicly or revise any of the forward-looking statements contained herein.