17 June 2009

Holidaybreak looks to raise Ã&#pound;33 million

Holidaybreak is looking to raise around Ã&#pound;33 million through a Rights Issue.

It plans to issue 21,714,340 New Ordinary Shares, subject to approval by shareholders at a General Meeting on July 3.

The group wants to use the money for investment opportunities for its education businesses which have come about in the current economic climate.

It said the Holidaybreak Board is now in advanced discussions to acquire a large potential PGL outdoor education centre with good access to London.

But a formal agreement regarding the acquisition can only be entered into upon completion of the Rights Issue.

Chairman John Coleman said: ââ¬ÅâœThe Board believes that the successful completion of the Rights Issue will enable the group
to take advantage of attractive investment opportunities for its education businesses.

ââ¬ÅâœCompletion of the Rights Issue will help the group to pursue its strategy for growth at a time when many of its competitors are constrained from doing so.ââ¬~

Group chief executive Carl Michel said: "There remains no sign of the group's Education Division being materially impacted by the recession.ââ¬~

The group, which has traditionally reported an operating loss in the first half due to the seasonal nature of its camping and education businesses, saw its pre-tax loss grow from Ã&#pound;18.2 million in the six months to March 31 of 2008 to Ã&#pound;36.6 million this year.

It said on June 15 its Education Division was 96% booked for 2009 and 39% for 2010, and sales intake is currently 7% above last yearââ¬â¢s comparative on a like-for-like basis.

The division has taken out about Ã&#pound;1 million of costs in the current year at Superbreak, primarily through headcount reduction in the call centre.

Holidaybreak said trading is improving as the division begins to see lower room rates and train fares coupled with better availability.

By Bev Fearis

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• Summer figures?
  
  

  I wonder what the results were for the 6 months to 30 September 2008?

  By Mick Coleby, Thursday, June 18, 2009
• Your forgetting the 1/2yr loss is normal
  
  

  Holidaybreak always make a first half loss due to all the actual cash coming in the summer and the costs in the winter; like many operators. The underlying point is that compared to last year the loss is higher but sales are on course. So the share issue isnt to cover a loss but for spending. As an ex employee (and current shareholder) I'm pleased there's some imagination being excercised so as to continue growing when so many other companies are failing to see the opportunity the recession represents.

  By David ranby, Thursday, June 18, 2009
• Finance-speak?
  
  

  If I were a shareholder I think I'd be put off from subscribing to the &#pound;33m new capital by the announcement of an &#pound;18.4m increased loss in the first half: does that not mean that the new shares raise the company's capital by only some &#pound;15m (maybe &#pound;16m after allowing for the &#pound;1m savings?. On a different tack, I note the new (to me) use of the expression "headcount reduction" for what seems plain and simple "redundancy". I don't like it.

  By Colin Murison Small, Wednesday, June 17, 2009