Investor Centre

Holidaybreak, the education, leisure and activity travel group, today announces its final full year results for the year ended 30 September 2009.

Financial highlights

¹ Headline profit before tax and earnings per share are stated before amortisation of acquired intangible assets of £3.5m (2008: £4.2m), exceptional restructuring costs of £1.6m (2008: £2.3m), impairment of goodwill of £9.6m (2008: £2.5m), IAS 39 mark-to-market revaluations of financial derivatives of £8.3m (2008: £0.2m) and the tax effect thereof of £3.6m (2008: £1.6m).
² 2008 EPS is restated for the Rights Issue
³ 2009 interim and 2008 interim and final year dividends restated for the Rights Issue

John Coleman, Executive Chairman, said:

“I am pleased to say that the Group has demonstrated a resilient performance in a difficult economic environment. The Education Division is not materially affected by the recession as parents continue to prioritise expenditure on their child’s school trip. Camping is well positioned, offering flexible family holidays across a wide choice of destinations and representing value for money. While Adventure has seen a more challenging period, both it and Hotel Breaks are well placed to benefit from any upturn in general economic conditions.

Despite the current economic environment, we are encouraged by recent trading patterns. We have strong brands with market leading positions across different travel segments operating in various European markets. These factors give us confidence that we are well placed when the economy emerges from the downturn. We continue to look at ways of exploiting opportunities for investment and acquisitive growth in our education businesses. However, we will continue to manage the entire business tightly, with a focus on cash generation and cost control.”

Summary

• Holidaybreak has demonstrated a resilient performance in a difficult economic environment.
  
• The trend towards customers booking their holidays later continues. Holidaybreak benefited from strong late bookings in Camping and Adventure Travel.
  
• The Group completed a £31.2m Rights Issue in July 2009 and on 18 September finalised the £9.4m purchase of a 150 acre site for PGL at Liddington which will open in 2010. The Group continues to look for further locations for PGL centres, as well as opportunities to acquire other education businesses.
  
• Education’s revenue was £122.3m (2008: £109.5m). Headline** operating profit was up 25% at £13.6m (2008: £10.9m). For 2009/10, the division is 79% booked and sales are in line with last year. PGL outdoor education centres are 92% booked for 2009/10, with revenue growth currently running at approximately 5%.
  
• Hotel Breaks’ revenue was £141.3m (2008: £149.9m) and headline** operating profit was £12.6m (2008: £15.5m). For 2009/10, sales intake for the division is currently up approximately 4% from last year reflecting improved demand into London in particular.
  
• Adventure Travel’s revenue was £97.9m (2008: £94.6m) and headline** operating profit was £4.2m (2008: £4.8m). For 2009/10 sales intake for the division is 12% lower than last year, consistent with our expectation of lower demand levels.
  
• Camping’s revenue was £111.9m (2008: £101.1m) on 4% lower capacity. Headline** operating profit was £12.9m (2008: £13.8m). Sales intake for the Camping Division is currently approximately 7% below last year’s level on 8% lower capacity for the 2010 season. We expect the trend to later bookings to continue.
  
• Net debt at 30 September 2009 was £138.1m (2008: £161.3m)
  
• The Board is recommending a final dividend of 7.9p (2008: 5.73p, restated for the Rights Issue), payable on 7 May 2010, to shareholders on the register on 9 April 2010, making a total of 11.80p (the interim dividend is restated for the Rights Issue) (2008: 13.53p, restated for the Rights Issue) for the year.
  
  

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Note to Editors

Holidaybreak (HBR.L) is an education, leisure and activity travel group listed on the London Stock Exchange. The Group's four operating divisions have market leading positions in the UK and other major European markets, organising educational and activity trips for UK school children, short breaks in the UK and Europe, worldwide adventure holidays and mobile-home and camping holidays on sites throughout Europe. For more information, please go to www.holidaybreak.co.uk.

**Reconciliation of headline to statutory operating profit