The new majority shareholders of Leger Shearings Group are looking to grow the business organically – but are open to more acquisitions if the opportunity arises.
Chief executive Liam Race, chief financial officer Andrew Oldfield and chief product officer Chris Plummer – who acquired a 30% stake in Leger Holidays in a management buyout in 2019 – increased their shareholding to 52.5% earlier this month.
The company acquired Shearings in June 2020 and formed the Leger Shearings Group. In September 2022, the group acquired Arena Travel, broadening its collection with special interest brands Stitchtopia and First for Bridge.
Speaking about growth plans as the group unveiled a rebrand for Shearings, Race told a Travel Weekly webcast: “Our plans primarily are organic but where an opportunity comes along and we feel it will fit well within the group, then absolutely.
“I don’t think we’ll step outside our escorted touring market. If there was one that would fit within the group, that we could synergise well, absolutely, we would certainly be looking to do that.”
He said the new ownership structure is “an enabler of continuation”, noting how the business has doubled in size since 2019.
Last week, the company said it expected to exceed last year’s record profit.
“Profits will be up by about 15%, maybe more, against last year,” Race told the webcast.
“We are trading substantially ahead, against last year.”
Sales at First for Bridge are seeing double-digit growth over 2023, he added, while the crafting holiday brand Stitchtopia is also doing “very well”.
“Those specialist brands are growing at an extremely fast rate and we forecast them to continue to do that,” he commented.
“It’s a very difficult product to replicate. That gives us a competitive edge.”
Meanwhile, river cruise sales have doubled since 2022, he told the webcast, and have the potential to double again within the next three years.
More: Shearings invests in trade marketing and incentive to promote rebrand
Leger Shearings executive trio become majority shareholders
Leger Shearings swoops to acquire Arena Travel from administration [September 2022]
Race hailed technology and inhouse websites as key to the group’s success.
“We’ve just implemented an AI technology platform in our contact centre, which will be revolutionary from an internal perspective ie understanding sentiment, understanding why some marketing campaigns are working, some aren’t so much,” he said.
The technology can also help the group to understand better what agents need when they call the company.
“We can then build training programmes, and Ashley [Dellow, head of retail sales] can visit them and ensure they have the right knowledge to create a hassle-free experience for customers visiting them in their stores,” he continued.
Commenting on sales trends, he said: “We are seeing certain segments of our database plan much further out, and then we’re seeing other sections of our database, probably more affluent, booking later.”
He said the flagship Luxuria coach holidays are selling better than ever before, while the short break range is also “performing very, very well”, and battlefield tours have also seen “strong” sales, thanks in part to the 80th anniversary of D-Day this year.
Asked if there were plans for a revamp of the Leger brand, he said colleagues had asked the same question, adding: “We can’t let our product offering get left behind. So watch this space.”
Race also paid tribute to the previous majority shareholders Ian Henry and Kathleen Henry.
Ian, who led the company for more than 30 years, and Kathleen, have now become minority shareholders – with the former appointed as non-executive chairman.
“It is really important that I reference how Ian has really mentored and provided faith to really deliver growth,” said Race.
“This transaction transition is another step forward in our growth journey.
“It is a step in the right direction and it enables Ian and his wife Kathleen to really focus on other things [while] still steering us and helping us in the right areas.
“His experience in this industry is second to none.
“He is great at offering advice at the right times, leaving us to have the brain space and room to develop our own thoughts, but then just give that little steer, which enables that extra 10% in terms of direction.
“We are very, very happy that we get to continue to work with Ian…the faith he’s put in us is fantastic.”