Specialist holiday group Holidaybreak is primed to grow through acquisition having built up a war-chest of up to £120 million, according to analyst Brewin Dolphin Securities.
The firm predicts Holidaybreak, which is made up of the hotels, adventure and camping divisions, is “highly likely” to make acquisitions with available funds of between £80 million and £120 million.
Germany was predicted as the market it is likely to make acquisitions in.
However, no move is thought likely until after the annual general meeting statement in February 2007.
Brewin Dolphin Securities predicts a pre-tax profit increase of 3.5% to 32.5 million for the 2006 financial year rising to £38.7 million for 2008.
The hotels division is expected to rise up to 5% on the back of demand for theatre shows in London.
The adventure travel division is predicted to grow by 11% for 2006 although it may experience reduce margins due to industry-wide issues such as security fears and the rising price of crude oil.
The camping division is expected to see a sales decrease of 9%, although capacity has been cut by 16%.