Simon Tobin, managing director of the Adventure Travel Division, will step down from the board at the end of February and his role will not be replaced.
Announcing Hoidaybreak's interim management statement for the period 1 October to 17 February, group chief executive Carl Michel said: ‘The group’s current trading performance is creditable given an unsettled and unpredictable consumer environment.
‘Overall trading is broadly flat for the year to date while the market is booking later than usual.’
Hotel breaks account for approximately 33% of revenues but sales are currently 10% below last year. About £1m of costs have been taken out of Superbreak, ‘primarily through headcount reduction’.
However, cheaper hotel rates and rail fares coupled with better London shows, such as Oliver!, are helping to improve trading.
For the summer, it is seeing some growth in UK short breaks and a decline in demand for European destinations, reflecting the weakness of sterling.
Adventure travel accounted for approximately 21% of group revenues and is the smallest division.
Demand has been hit by higher prices due to the strength of the euro and dollar, and £1m-worth of costs has been taken out, mostly at Explore.
Camping capacity has been reduced by 4% and sales are currently 5% down compared with the corresponding period last year.
The Education division accounted for 24% of 2008 group revenues and so far remains unaffected by the recession.
Sales for are 13% above last year, including a contribution from EST acquired in June 2008 - on a like-for-like basis divisional sales are up 7% over last year.
Overall, group sales are up 0.5% at current exchange rates [and down 2% at constant exchange rates] compared with last year.
The group will benefit from sales to eurozone-based customers, who account for 28% of revenues, and overhead savings already implemented.
With 41% of target revenue still to be booked, it anticipates performing in line with management expectations for the year ending 30 September 2009.
Bob Ayling’s second three-year term as chairman comes to an end in June when he will retire from the board, and a successor is being sought.
Its AGM is on 24 February in Manchester and interim results for the six months ending 31 March 2009 will be out on 18 May 2009.
See also:
Transatlantic push for Holidaybreak brands (07/01/09)
Holidaybreak profits drop 19% [FYs] (27/11/08)
Education drives Holidaybreak growth (23/07/08)
Ayling takes over as chairman of Holidaybreak (03/06/03)
Holidaybreak gives Tobin new pitch (18/10/00)