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.