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First Choice profits down £7 million to £72.5 million

FIRST
Choice has seen a £7 million drop in profits amid “tough and
challenging” trading conditions.

Pre-tax
profits – before one-off costs – fell to £72.5 million from £79.6 million.
Turnover for the year dropped 8% to £2.183 billion from £2.369 billion. Final
dividend was increased by 7% to 3p from 2.8p, making a total dividend of 4.5p,
up from 4.2p.

Chairman Ian
Clubb said: “We are pleased with the results we have achieved in what has
been one of the toughest and most challenging years for the travel industry, in
recent history.”

He said the group’s strategy of
investing in and growing the profits from specialist businesses has contributed
to “limiting the impact on profit from this year’s difficult market
conditions”.

Specialist
businesses now account for 52% of the group’s operating profit, up from 49%
last year. Group operating profit from specialist businesses increased by 7% to
£39.3 million, from £36.6 million.

Yesterday
the group paid £1.6 million for cross-country skiing and walking specialist
Waymark Holidays Limited. This follows the acquisition in May of adventure
specialist Exodus Travels Limited and the acquisition in August of Porter &
Haylett Limited, which operates under the Connoisseur brand name.

 

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