30 September 2008

Weaker UK break demand reported by Holidaybreak

HolidaybreakÃ¢â¬â¢s UK hotel breaks division has seen a fall off in sales due to high prices and fewer hit West End shows in London.

The group, giving a trading update, said hotel break sales for 2007-08 were up by five per cent but this slowed Ã¢â¬ÅâœmarkedlyÃ¢â¬~ at offshoot Superbreak after May.

Ã¢â¬ÅâœFor 2008-09 the division is currently experiencing a fall off in sales intake of about 11%,Ã¢â¬~ the statement said. Ã¢â¬ÅâœThis mainly reflects weaker demand into London, where hotel leisure rates have not yet declined and there a less big hit theatre shows and exhibitions compared to this time last year.Ã¢â¬~

The groupÃ¢â¬â¢s RegalDive has suffered costs of around Ã&#pound;300,000 due to the collapse of the XL Leisure Group.

Overall adventure travel division sales are up by three per cetn but margins have been affected by Ã¢â¬Åâœgeopolitical events and fuel cost increasesÃ¢â¬~.

For next year, the division is seeing sales growth of around five per cent. The groupÃ¢â¬â¢s Explore brandÃ¢â¬â¢s operating margins from January 2009 will be lower due to the inclusion of local ad hoc payments and high airline fuel surcharges into the overall selling price, the company said.

Camping has seen a turnaround, with sale up this year by one per cent on five per cent less capacity. Bookings for next year are ahead of target.

Sales in the education division are up by nine per cent this year and the division is 57% sold for 2008-09, with a sales growth of four per cent. Bed capacity is being increased at existing PGL sites in the UK.

Year-end group debt is expected to be around Ã&#pound;160 million. The group said it continues to manage its cash and borrowings Ã¢â¬Åâœmindful of current trading conditionsÃ¢â¬~.

Group chief executive Carl Michel said: Ã¢â¬ÅâœAlthough the general economic environment is difficult, I am pleased that the spread and diversity of our businesses gives resilience to the groupÃ¢â¬â¢s trading performance.Ã¢â¬~

by Phil Davies