Holidaybreak is set to meet expectations for the 2008/09 financial year but said it remains focused on cash control because of continued uncertainty in the global economy.
In a pre-close trading update, the group said net debt for the year ending September 30 is expected to be £130 million. Full-year results will be announced on November 27.
Bookings for the group’s hotel breaks are improving after a tough first half of the year, as reported in its interim results in May, but with lower average transaction values. Hotel break sales for 2008/09 are 2% down, with bookings benefiting from lower room rates and train fares.
As a result of stronger than expected late bookings, adventure travel division sales revenues are 4% up. However, in the eurozone, figures are inflated by the low exchange rate of the pound. Sales revenues in euros are down 3%. For 2009/10, bookings for the division are 20% down, with the next 12 months expected to continue to be difficult. The division continues to undergo a cost-cutting restructure.
Similarly, camping has benefited from strong late sales. The division’s sales revenues for 2008/09 are 2% up, but 3% down – for the same reasons as the adventure travel division – in line with a capacity cut of 4%. Bookings for 2009/10 are behind 2008/09 but on low volumes, in line with expectations.
The group’s education division’s sales for 2008/09 are 11% up, and it is 62% booked for 2009/10. The group recently acquired a 150-acre site at Liddington, Wiltshire, which will open as a PGL outdoor education centre in 2010.
Meanwhile, a replacement is still being sought for group chief executive Carl Michel, who is leaving for personal reasons after four years on September 30. John Coleman will remain executive chairman until a new chief executive is appointed.
This is a community-moderated forum.
All post are the individual views of the respective commenter and are not the expressed views of Travel Weekly.
By posting your comments you agree to accept our Terms & Conditions.