Holidaybreak reports drop in profits for year

The European specialist holiday operator Holidaybreak has reported that its full-year profits before taxes fell to £32.4 million for the year ended 30 September, as compared with £40 million last year.

Carl Michel, the group’s chief executive, said: “The group’s overall trading performance for the year was disappointing against our initial expectations for the year with an unsettled and unpredictable final quarter marking the start of the recession.”

He remained optimistic, however, saying: “Although the economic environment will remain difficult, the spread and diversity of our businesses gives the group exposure to other European markets that will be differently affected by the uncertainty ahead providing us with additional resilience. The group remains focused on delivering value for our customers and we believe that our businesses will perform satisfactorily in a recession.”

Michel indicated that the holiday operator was instituting measures to ensure its survival through this critical period: “We are taking a number of steps and initiatives, including cutting costs, managing cash and reducing discretionary capital investment, to manage the business effectively in these challenging times.”

Revenue in Holidaybreak’s education sector for the year totalled £109.5 million, up significantly from the previous year’s £26.1 million. However, 2007 revenue included on the three months of trading that followed the acquisition of PGL.

Headline operating profits for the year were £10.9 million, compared with £8.5 million for 2007. For 2008-2009, the division is showing sales growth of eight per cent and is 78 per cent booked.

Thanks to www.travelmole.com for the above quotes, for more information on this article please visit their website.

www.holidaybreak.co.uk