| Finance Director's Review |
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| Bob Baddeley Finance Director |
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finance
Financial Review by
Bob Baddeley - Finance Director
In the year to 30 September 2002 Holidaybreak plc showed a strong financial performance in all its activities and the Group achieved increases in profit before goodwill amortisation, impairment and tax and earnings per share of 13.7% and 11.6% respectively. At the end of the year, the Group invested £29.9m in the Camping Division with the acquisition of EuroSites. The continued underlying trend of growing profitability and strong operational cash flows of all our businesses will enable us rapidly to pay down debt and rebuild interest cover.
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FINANCIAL
HIGHLIGHTS
- Record sales of £218.7m (2001:£192.5m)
- Record profit before tax of £27.1m* (2001:£23.8m*)
- Record earnings per share of 42.5p*, up 11.6% on 2001
(38.1p*)
- Increase in annual dividend for sixth successive year
to 20.0p (2001:18.0p)
- Interest cover increased to 12.3 times (2001:8.6)
- £29.9m acquisition of EuroS tes finance dentirely by debt
- Net debt reduction of £21.8m (before cost of EuroSites
acquisition)
* Before goodwill amortisation,
impairment and (2001 only) exceptional operating costs
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GROUP PROFIT AND
LOSS ACCOUNT
Turnover in 2002 was up 14% on
2001 at £218.7m (2001: £192.5m). Operating profit before amortisation
and impairment of goodwill increased by 9% to £29.2m (2001: £26.7m).
Headline earnings per share, stated before amortisation and impairment
of goodwill, were 42.5p per share, an increase of 11.6 % over 2001
(38.1p).
The interest charge of £2.1m (2001: £2.9m) was down significantly
as the Group benefited from the strong operating cash flow of all
its businesses. Interest cover increased from 8.6 times in 2001
to 12.3 times in 2002. The Group’s tax charge, including full provision
for deferred tax, was £7.1m and the tax rate was the same as 2001
(30%).
The proposed final dividend of 14.1p per ordinary share represents
an increase of 12% over 2001 and gives a total dividend for the
year of 20.0p per ordinary share (2001: 18.0p). Our policy is to
increase dividends whilst maintaining dividend cover at over 2 times.
| 2002
Profit and Loss Account |
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| 2001 figures in brackets |
Camping |
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Hotel Breaks |
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Adventure Holidays |
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Group |
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| Turnover |
£109.2m |
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£76.9m |
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£32.6m |
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£218.7m |
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(£103.7m) |
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(£57.8m) |
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(£31.0m) |
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(£192.5m) |
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| Gross Profit |
£38.7m |
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£15.5m |
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£8.4m |
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£62.6m |
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(£35.8m) |
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(£11.0m) |
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(£9.2m) |
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(£56.0m) |
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| Operating Profit |
£19.0m |
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£7.8m |
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£2.4m |
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£29.2m |
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(£17.8m) |
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(£5.5m) |
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(£3.4m) |
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(£26.7m) |
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DIVISIONAL RESULTS
Camping Division Sales
were up by 5% to £109.2m (2001: £103.7m). Operating margin improved
to 17.4% (2001: 17.2%) and operating profits were 6% higher at £19.0m
(2001: £17.8m).
Hotel Breaks Revenues were 33% higher at £76.9m (£57.8m).
Operating margin improved to 10.1% (2001: 9.5%) and operating profits
increased by 43% to £7.8m (2001: £5.5m).
Adventure Division Recovered from the impact of September
11th and sales at £32.6m were 5.1% higher than 2001 (£31.0m). However,
operating margin fell to 7.4% (2001: 10.9%). As a result operating
profit for the division was down by 28.5% to £2.4m (£3.4m).
| Finance Director's Review |
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