16 May 2008

Holidaybreak expands education division

Holidaybreak has expended its education division with the purchase of a new site in Sussex for Ã&#pound;2.5 million.

The arm, formed as a result of the acquisitions of PGL and NST last year, now represents 22% of group revenues.

Holidaybreak is to create a 400-bed facility at the Windmill Hill site to open in summer 2009 and has already taken Ã&#pound;300,000-worth of bookings.

The company is to spend Ã&#pound;4.5 million over three years to build lodges and activity bases in the grounds.

The acquisition was disclosed as Holidaybreak reported traditional winter pre-tax losses had more than doubled from Ã&#pound;7.9 million to Ã&#pound;18.2 million in the six months to March 31. This came on revenue up by 55% to Ã&#pound;156 million.

Holidaybreak, which encompasses UK breaks, adventure travel and camping holidays in addition to school holidays, said it traditionally reports an operating loss in the first half of its financial year due to the seasonal nature of the camping and educational businesses.

The educational arm is 94% booked for this year and 32% for 2009, with sales up by 9% for 2008.

The group is also spending Ã&#pound;1.8 million to increase its bed stock at educational adventure centres and various bolt-on acquisitions are being pursued.

Sales for hotel breaks in the UK Ã¢â¬' where the group owns short break operator Superbreak Ã¢â¬' are up by seven per cent, with "robust demand" for packaged trips to London.

The division said London breaks remained strong, boosted by exhibitions such as Tutankhamun and China Warriors and West Wend shows such as Joseph and Jersey Boys.

The division has already acquired tickets for the 2009 production of Oliver! which is expected to be a major draw on the back of the Sir Andrew Lloyd Webber TV talent casting show.

Hotel breaks made a half-year operating profit up by Ã&#pound;700,000 to Ã&#pound;6.8 million following the acquisition of West End Theatre Breaks in January last year.

But adventure travel full year revenues are expected to be down by Ã&#pound;2 million due to recent civil unrest in Kenya and Tibet and lack of capacity in the Antarctic following the sinking of cruise ship MS Explorer last November.

"These destinations are expected to recover in 2009 and the division is seeing strong bookings for next year," the company said. "Adventure is also seeing a benefit for a drive to increase agency sales and this will continue in 2008 and 2009."

The camping division half year operating loss was up from Ã&#pound;13.6 million to Ã&#pound;14.8 million.

Capacity for this summer has been cut by five per cent and sales are up by two per cent. Camping holidays are 90% sold for the season compared with 87% this time a year ago.

Holidaybreak revealed that Mark Wray will stand down from the board at the end of the month due to a family bereavement but he will stay on as joint managing director of the hotel breaks division.

Chairman Robert Ayling said the group was well positioned to Ã¢â¬Åâœexploit opportunities to grow, both organically and by acquisitionÃ¢â¬~.

by Phil Davies