RANK’s UK holidays division is expecting to see profits rise again in 1999 despite admitting that the domestic market is 12% down year-on-year.
The upbeat predictions were made after the division reported a fall in profits from £71m to £56m in the year to December 31 1998.
Divisional managing director Jerry Fowden said the drop was as a result of the closure of Butlins sites due to major on-going redevelopment work last year.
Three sites were closed from January to Easter and all five were closed from October to the end of the year.
Two will reopen as Haven All-Action parks in April and three will open as new-look Family Entertainment Resorts in May. Fowden said forward bookings for Butlins were up 19% for the May to October period on a like for like basis.
“It was Butlins closures that reduced profits significantly last year, followed by declining consumer confidence and poor summer weather. Across the other three brands – Haven, Warner and Oasis – profits were up by 4.5%,” he said.
Fowden said this rise was achieved despite the overall domestic market being 5% down during the division’s financial year.