Ancillaries specialist Holiday Extras has revised its borrowing facility with long-term banking partner NatWest to fund its “ambitious” plan to double the size of the business over five years.
NatWest has approved a lending facility worth approximately £20 million and will explore “the provision of further support” to fund investment opportunities.
The Kent-based travel technology business, which offers airport parking, airport hotels, insurance and other holiday add-ons, celebrates its 40th birthday this year.
It said in a statement that for most of those 40 years its regarded its credit facility as “part and parcel” of the travel industry’s seasonality.
“During the travel lockdowns that started in 2020, that facility instead became a lifeline,” the statement said.
“But with travel booming since the spring of 2022, when the last UK travel restriction was lifted, Holiday Extras has rearranged the facility with its bank to power acquisitions and its ambitious plan to double the size of the business over five years.”
Hugo Loudon, chief financial officer at Holiday Extras, said: “Our last financial year was the most successful we’ve ever seen in our 40 years’ trading and, given our plans to grow our business, we decided that rather than simply closing the borrowing facility we no longer needed for seasonal cash flow, we’d keep it to acquire businesses that we believe support our growth strategy.
“The funding support of NatWest will enable us to power our growth plans and deliver the ambitious strategy we have in place.
“Holiday Extras operates in several areas including car parking, insurance, UK breaks and travel technology, so our new funding is likely to pursue growth and acquisition opportunities in one or more of these areas.”
Grahame Wells, NatWest’s corporate relationship director, added: “Not only do we believe in the team and their unique vision, but we value the huge contribution our business customers make to their local communities and wider UK economy.
“NatWest highly values its banking relationship with Holiday Extras Group, and we are delighted to support their growth strategy including any potential M&A activity.”
Pictured from left: David Norris, Holiday Extras; Matthew Pack, Holiday Extras; Graduate Trainee, NatWest; Elizabeth Hogg, Holiday Extras; Alexandra Bellingham, NatWest; Matt Paxton, Holiday Extras; Dave Harris, NatWest; and Hugo Loudon, Holiday Extras