Holidaybreak looks to raise £33 million
Holidaybreak is looking to raise around £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: “The 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.
“Completion 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.â€
Group chief executive Carl Michel said: “There remains no sign of the group’s Education Division being materially impacted by the recession.â€
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 £18.2 million in the six months to March 31 of 2008 to £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 year’s comparative on a like-for-like basis.
The division has taken out about £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
Bev
Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.
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