Last checked at 29 Sep 2008 07:00
29 September 2008:
HOLIDAYBREAK PLC
Pre-close trading update
Holidaybreak, the education, leisure and activity travel group, today releases its pre-close trading update at the end of its current financial year.
Current trading and outlook
The Group's overall trading performance for the current year is expected to be broadly in line with our expectations despite a more unsettled and unpredictable trading environment. The continued high level of LIBOR rates has increased the Group's interest charge and this may continue into 2008/09. Year-end net debt is expected to be approximately £160m. The Group continues to manage its cash and borrowings, mindful of current trading conditions.
Carl Michel, Group Chief Executive, said "Although the general economic environment is difficult, I am pleased that the spread and diversity of our businesses gives resilience to the Group's trading performance."
Divisional updates
Education Division sales for 2007/08 are up 9% with good occupancy. For 2008/9 the division is 57% booked and showing a growth in sales of 4%. With strong forward bookings, we are increasing bed stock in the UK at several existing PGL sites and developing our recently acquired adventure centre at Windmill Hill in Sussex.
Hotel Breaks sales for 2007/08 are up 5% although sales intake slowed markedly after May at Superbreak. For 2008/09 the division is currently experiencing a fall off in sales intake of about 11%. This mainly reflects weaker demand into London, where hotel leisure rates have not yet declined and there are less big hit theatre shows and exhibitions compared to this time last year.
Adventure Travel sales for 2007/08 are up 3% although margins have been affected by geopolitical events and fuel cost increases. RegalDive has been hit by costs in the region of £0.3m due to the demise of XL Leisure Group. For 2008/09 the division is seeing revenue growth of around 5%. Explore's operating margins from January 2009 will be lower by virtue of the inclusion of 'local' ad hoc payments and higher airline fuel surcharges into the overall selling price. Explore Tailormade, catering for individual adventure travellers, was successfully launched and bookings to date are ahead of expectations.
Our Camping business has performed well this season with sales for 2007/08 up 1% on 5% lower capacity than last year. Next year's bookings are currently ahead of target, although volumes are not yet material. The stronger Euro increases yields from Dutch, Irish and German bookings, thereby improving the trading resilience of this division.
Results
Holidaybreak expects to announce its full year results on 27 November 2008.
Enquiries:
| Carl Michel / Bob Baddeley | Holidaybreak +44 (0) 1606 787100 |
| James Hogan / Craig Breheny / Ash Spiegelberg | 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 sector, 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.