interim results 2008 may 2008
DESCRIPTION
Interim Results 2008 May 2008. Agenda. Bob Ayling (Chairman) - Overview Bob Baddeley (Group Finance Director) - Finance Review Carl Michel (Group Chief Executive) - Strategy - Trading Outlook. Highlights. Interim results - Revenue growth of 55% - Solid performance - PowerPoint PPT PresentationTRANSCRIPT
Interim Results 2008Interim Results 2008
May 2008
2 European specialist holiday groupEuropean specialist holiday group
Agenda
Bob Ayling (Chairman) - Overview
Bob Baddeley (Group Finance Director) - Finance Review
Carl Michel (Group Chief Executive) - Strategy - Trading Outlook
3 European specialist holiday groupEuropean specialist holiday group
Highlights
Interim results- Revenue growth of 55%- Solid performance- DPS + 5%
Current trading broadly in line with expectations
Great potential for future growth
Interim Results for the six Interim Results for the six months ended 31 March 2008months ended 31 March 2008
5 European specialist holiday groupEuropean specialist holiday group
FINANCE DIRECTOR’S REVIEW
BOB BADDELEY
6 European specialist holiday groupEuropean specialist holiday group
FINANCIAL HIGHLIGHTS
Revenues +55% to £156.0m (2007 : £100.6m)
EBITA loss (£10.0m) (2007 : (£5.7m))
Net debt £165.7m (2007 : £29.6m)
Dividend up 5%
7 European specialist holiday groupEuropean specialist holiday group
2008 2007£m £m
Revenue 156.0 100.6
EBITA (10.0) (5.7)
Loss before tax* (15.4) (6.8)
Loss per share* (22.9p) (9.8p)
INCOME STATEMENT
* Before amortisation of acquired intangible assets
8 European specialist holiday groupEuropean specialist holiday group
DIVISIONAL RESULTS
Education Hotel Breaks Adventure Camping Group
Travel
£m £m £m £m £m
Revenue 2008 39.5 75.5 40.4 0.6 156.0
2007 - 61.3 39.1 0.2 100.6
EBITA 2008 (3.0) 7.3 0.5 (14.8) (10.0)
2007 - 6.7 1.2 (13.6) (5.7)
Amortisation 2008 (2.1) (0.5) (0.2) - (2.8)
2007 - (0.6) (0.5) - (1.1)
Operating profit (loss) 2008 (5.1) 6.8 0.3 (14.8) (12.8)
2007 - 6.1 0.7 (13.6) (6.8)
9 European specialist holiday groupEuropean specialist holiday group
CASH FLOW
2008 2007£m £m
EBITDA (7.7) (4.6)Working capital movement 13.9 (4.2)Operating cash flow 6.2 (8.8)Capital expenditure (net) (10.8) (9.0)Tax (6.5) (5.4)Interest (6.3) (0.9)Free cash flow (17.4) (24.1)Loans and share issues 13.5 23.8Acquisitions & intangibles (2.1) (3.3)(Decrease) in cash (6.0) (3.6)
10 European specialist holiday groupEuropean specialist holiday group
BALANCE SHEET
2008 2007£m £m
Intangibles 177.0 76.6Property Plant & Equipment 180.9 65.7Non-current assets 357.9 142.3Cash and cash equivalents 55.7 50.2Net current liabilities (113.5) (63.9)Short term borrowings (210.2) (72.8)Long-term liabilities and provision (45.1) (11.2)Net Assets 44.8 44.6
11 European specialist holiday groupEuropean specialist holiday group
BANKING FACILITIES
Refinancing of £275m 5 year committed facility completed May
- replaces previous £255m facility- £50m Term Loan- £225m RCF, Bonding and Ancillary Facility- still require £30m in CAA & ABTA bonds
Initial margin 130 bps + LIBOR (previously 85bps)- attractive terms in current conditions
Costs c.£3m- plus £0.5m unamortised from 2005
Minimum headroom c.£50m in current year
12 European specialist holiday groupEuropean specialist holiday group
CURRENCY
23% of Group EBITA in € zone
Other net exposure- c. €53m- c. $26m
Forward contracts in place for 2008 but not for 2009
13 European specialist holiday groupEuropean specialist holiday group
CEO REVIEW
CARL MICHEL
14 European specialist holiday groupEuropean specialist holiday group
EDUCATION Business already 32% booked for 2009.
Seen as non-discretionary spend
Two leading UK education brands
HOTELS BREAKS
Increased UK hotel availability and less pressure on margins. Customers typically aged 40-70
No room commitments
ADVENTURE TRAVEL
Average customer age 50
Good growth (+12%) for next year across division. No flight or room commitments
CAMPING Capacity reduced 5% this year. One third of revenues come from outside UK.
Large pool (50,000) of lapsed UK loyalists. Seen as a cheaper option for a family holiday
DIVISION STRENGTHS/POSITIVES
BUSINESS RESILIENCE
15 European specialist holiday groupEuropean specialist holiday group
Building on core competencies
Develop a multipath approach
Pursue sustainable faster growth
Diversify sales mix
PROGRESS AGAINST STRATEGIC THEMES
16 European specialist holiday groupEuropean specialist holiday group
1. BUILDING ON CORE COMPETENCIES
Web expertise
London theatrefor the Dutch
Focus on respective sales expertise in tours and centres.
SUPERBREAK
WETBNST
KEYCAMP/EUROCAMP
EXPLORE
TRAVELPLUS
DJOSER
Selling London theatre visits to schoolsPackaging hotel stays
with premium tickets
Cyclingproduct Work-travel and
Volunteer products
SchoolsAdventures*
Work assignments atPGL centresSummer language schools*
Action stationson campsitesExchange
customer lists
* Activity planned for 2009
PGL
BOOKIT
Selling last minuteCamping stock
17 European specialist holiday groupEuropean specialist holiday group
Organic developments
Launch of Explore Tailor-made in late June
Launch of Travelworks in UK
Introduction of tree-houses and Florida into Camping programme
Channel developments
Explore products to be sold via Thomas Cook
New ticket booth at Leicester Square
Bolt-on acquisitions
Acquisition of Divantoura (Ghent)
Healthy pipeline of deal opportunities
2. DEVELOP A MULTIPATH APPROACH
18 European specialist holiday groupEuropean specialist holiday group
Windmill Hill in Hailsham, Sussex – a new centre with the potential for 400+ beds. £300k of bookings for 2009
Other opportunities to grow UK bedstock on existing sites – potential to add further 480 beds (on base of 6,800) in 2008/09
Drive to value added packaging in London
Up year to date from 36% to 49% - average spend 2¼ times that of room-only sales
Larger presence allow more substantial ticket commitments for shows
Continued systems investment
Cost synergies next year between NST and PGL
3. PURSUE SUSTAINABLE FASTER GROWTH
19 European specialist holiday groupEuropean specialist holiday group
2007/08 proforma sales: Education 22%, Hotels Breaks 33%, Adventure Travel 21%, Camping 24%
Adventure Travel Division already half non-UK revenue
Looking at several European acquisitions
Portfolio now spanning all customer age bands:
4. DIVERSIFY SALES MIX
20 European specialist holiday groupEuropean specialist holiday group
Education
Up 9%. £19m of turnover already booked with UK adventure centres for 2009
Hotel Breaks
Sales intake up 7%. Activity in London will tail off with August ending of Tutankhamum/China Warriors but new shows (Oliver!) and exhibitions (Hadrian’s Britain) to follow
Margins continue at around 12% to reflect investment in IT systems and web affiliate costs
Adventure Travel
Current summer sales up 5%. Impact of Antarctic, Kenya and Tibet worth about £2m in sales with margin adversely affected by around £0.8m.
Camping
Up 2% on capacity down 5%. Now 90% booked, but depends on late UK market (last year assisted by bad weather)
Margins assumed to be stable
TRADING UPDATE
21 European specialist holiday groupEuropean specialist holiday group
The group enjoys
A sound financial position
Industry-leading margins
Good operating cashflow
Current performance is good
Our operations are resilient
We have confidence in the longer term growth prospects for the group
OUTLOOK