In a pre-close statement issued Monday, group chief executive, Carl Michel, said: ‘Although the general economic environment is difficult, I am pleased that the spread and diversity of our businesses gives resilience to the group's trading performance.’
Sales for the current year 2007/08 at Holidaybreak’s Education division, which includes European Study Tours, PGL and NST, are up 9%, ‘with good occupancy’. For 2008/9 the division is 57% booked, with sales 4% ahead. Bed stock is being increased at several existing PGL sites, while development of its recently acquired adventure centre at Windmill Hill in Sussex is continuing.
Sales for 2007/08 in the Hotel Breaks division (Superbreak, Theatrebreak, The Luxury Hotel Collection and West End Theatre Bookings) are up 5% year-on-year, although they ‘slowed markedly after May at Superbreak’.
For 2008/09, the division’s sales are down 11% to date, mainly due to weaker demand in London, where hotel leisure rates have not yet declined and there are fewer big hit theatre shows and exhibitions than this time last year.
Adventure Travel, comprising Explore, Regaldive, Djoser, carpe diem Sprachreisen and TravelWorks, reported 2007/08 sales 3% ahead, but margins have been affected by geopolitical events and fuel cost increases. In addition, Regaldive has been hit by costs of about £300k due to the demise of XL Leisure Group.
For 2008/09 Adventure Travel is seeing revenue growth of around 5%. Explore’s operating margins from January 2009 will be lower by virtue of the inclusion of 'local' ad hoc payments and higher airline fuel surcharges into the overall selling price.
Finally, the group said its Camping business was performing well, with sales for 2007/08 up 1% on 5% lower capacity than last year, and 2008/09 bookings currently ahead of target, ‘although volumes are not yet material’.
The strengthening euro is increasing yields from its Dutch, Irish and German bookings, thereby improving the division’s trading resilience.
Holidaybreak will announce its results for the year to 30 September 2008 on 27 November.
See also:
XL Leisure Group grounded (12/09/08)
Education drives Holidaybreak growth (23/07/08)
Holidaybreak expands Education division (24/06/08)
Holidaybreak ‘delighted’ by education [H1s] (16/05/08)