Holiday Extras’ Ambitious Growth Plans Supported By Transformed Borrowing Facility

Monday, Jul 24, 2023 0

Holiday Extras, the travel ancillary provider that promises to make every holiday extra special, has agreed a revised borrowing facility with long-term banking partner NatWest to facilitate its ambitious growth and acquisition plans.

A lending facility worth approximately £20m has been approved. NatWest has also stated it will explore the provision of further support to fund investment opportunities presented to them.

The Kent-based travel technology business, known as the market leader in airport parking, airport hotels, insurance and other holiday add-ons, celebrates its 40th birthday this year, and for most of those 40 years regarded its credit facility as part and parcel of the travel industry’s seasonality. During the travel lockdowns that started in 2020, that facility instead became a lifeline. But with travel booming since the spring of 2022, when the last UK travel restriction was lifted, Holiday Extras has rearranged the facility with its bank to power acquisitions and its ambitious plan to double the size of the business over five years.

CFO Hugo Loudon commented:

“Our last financial year was the most successful we’ve ever seen in our 40 years’ trading and given our plans to grow our business we decided that rather than simply closing the borrowing facility we no longer needed for seasonal cash flow, we’d keep it to acquire businesses that we believe support our growth strategy. The funding support of NatWest will enable us to power our growth plans and deliver the ambitious strategy we have in place.

“Holiday Extras operates in several areas including car parking, insurance, UK breaks and travel technology, so our new funding is likely to pursue growth and acquisition opportunities in one or more of these areas.”

Grahame Wells, NatWest’s Corporate Relationship Director, added:

“I’m delighted NatWest has been able to support HX over the last few years, which have been very challenging for the travel industry. Not only do we believe in the team and their unique vision, but we value the huge contribution our business customers make to their local communities and wider UK economy. NatWest highly values its banking relationship with Holiday Extras Group, and we are delighted to support their growth strategy including any potential M&A activity.”