Superbreak parent reveals deeper losses
Superbreak parent company Holidaybreak made a pre-tax loss of £19.3m for the first half of the year to the end of March, £1.5m greater than last year.
The group, which also owns education and activity operators including PGL, blamed the higher losses on events in the Middle East, North Africa and Asia and difficult trading conditions in its Hotel Breaks Division, where sales are 9% down on last year.
It said bad weather in December and the "difficult consumer environment in the UK and the Netherlands" impacted on hotel bookings. Superbreak’s sales were also affected by the loss of UK airport hotel contracts with large retail travel agents, though this was described as "low margin" business. Excluding these contracts, sales are 6% down on last year, said the company.
Trading continues to be difficult with sales through UK retail travel agents and Bookit lower than last year.
In a statement to the London Stock Exchange, the company said it was focusing more heavily on direct sales. It said: "We continue to manage the business tightly with a focus on reducing costs and growing the higher margin direct to consumer sales channel, whilst at the same time positioning the business to ensure it is well placed to benefit when the trading environment improves."
Holidaybreak’s Education division has shown strong performance, it said. Its PGL UK children’s activity centres are 99% booked for 2011.
Chief executive Martin Davies said: "We have delivered a resilient performance in the first half despite the difficult trading environment." He said he was particularly excited about the growth prospects for Meininger, acquired last December, and the potential to extend its offering to the large German education market.
"We continue to review the overall Group portfolio as we look to strengthen the Education share of the Group," he said. "In the meantime, all of our businesses are being managed tightly, with a focus on cash generation, margin and cost control and we expect to perform in line with our expectations for the year ending 30 September 2011."
The Board has declared a half year dividend of 3.35p per share, up 5% on last year, reflecting its confidence in the outlook for the full year, it said.
By Linsey McNeill
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
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