overview holidaybreak is a european specialist holiday group with market leading positions in the uk...
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Overview
Holidaybreak is a European specialist holiday group with market leading positions in the UK and other major European markets. In 2005 the Group provided 3 million holidays in over 100 countries worldwide.
The business generates substantial cash, delivers industry leading margins is highly profitable and has proven resilient in the face of changing market conditions. The Group has the financial strength to respond to changing market trends and exploit opportunities for both organic and acquisition based growth whilst paying an attractive dividend.
Key Management
Carl Michel, Chief Executive (42)Appointed Chief Executive in September 2005. He previously held senior positions at companies including McKinsey, British Airways and Opodo.
Bob Baddeley, FCA Finance Director (52)Joined the Company in March 1995. He has held senior financial positions at Albert Fisher, Swan Steel and Unigate (now Uniq).
Bob Ayling, Chairman (59)Was appointed a Non-executive Director in February 2003 and became Chairman in June 2003. Previously CEO of British Airways.
Strategy
Stock Data as at 06/12/05
Listing LSETicker HBRSector Leisure, FTSE Small capMarket Cap £319.1m Share price 654pShares in issue 47.87m52 Week High / Low 693p / 550 p
History1973: Eurocamp Travel founded1988: Management Buy Out1991: Eurocamp floated on the LSE 1995: Acquisition of Superbreak1998: Acquisition of Keycamp1998: Holding company renamed Holidaybreak2000: Acquisition of Explore2004: Acquisition of Dutch on-line leisure business BRC 2005: Acquisition of Dutch adventure business Djoser
The three operating divisions have different product and business models but all share important strengths - market leadership, multi-channel distribution and high standards of product and service quality.
The Group will grow the portfolio of brands under the Holidaybreak umbrella organically, by investment in growing areas of the current business, and by acquisition.
Internet is a core part of the marketing strategy and accounts for approximately 40% of sales and is continuing to grow strongly.
Major Shareholders
Holidaybreak plcHartford Manor, Greenbank LaneNorthwich Cheshire, CW8 1HWTel: +44 (0) 1606 787100Email: [email protected]: www.holidaybreak.co.uk
Craig Breheny / Ash SpiegelbergBrunswick Group
16 Lincoln’s Inn FieldsLondon WC2A 3ED
Tel: +44 (0) 20 7404 [email protected]
CORPORATE OVERVIEW DECEMBER 2005
Contacts
Financial Summary
* Before goodwill and exceptional costs ** Net cash inflow from operating activities
Aberforth Investment Managers c.17.4%
Fidelity
Morley Fund Management
c.10.8%
c.6.0%
Sales, £m PBT, £m* Net Cash Inflow**, £m
281.6
28.0
46.2
259.5
27.9
47.4
44.4
22.0
2004 2003
Financial Calendar(Year end 30/09/06)
Date
AGM 14 March 2006
Interim Results May 2006
Trading Update September 2006
Preliminary Results December 2006
303.0
32.0
52.0
EPS, pence DPS, pence
44.0
24.2
48.8
26.6
2005
Hotel BreaksThe division provides domestic and overseas short-break holidays primarily for UK and Dutch consumers. Superbreak is the UK’s leading short-break operator. Bookings come through UK high street travel agents, direct by phone and via the Internet. Bookit is the market leading on-line intermediary for short-stay leisure hotel breaks in the Netherlands. The main brand, Weekendjeweg.nl, provides hotel accommodation for two night weekend stays primarily in the Netherlands, Belgium and Germany. Both businesses benefit from a very flexible cost structure, trade at consistent margins and have very strong cash flows.
• 2005 Turnover: £126.7m
• 2.45m holidays sold in year to 30/09/05
• Strong relationship with 3000+ hotels, 250+ hotel suppliers
• Flexible cost base – no commitment to hotel room allocations
• Strongly cash generative – negative working capital
• Operates in a growth sector
Adventure TravelThe three businesses, Explore (UK), Djoser (The Netherlands) and RegalDive (UK) are market leaders in ‘soft adventure’ and scuba diving holidays. Explore provides small group escorted tours to approximately 130 countries worldwide. Djoser offers escorted tours in 85 countries and is the largest adventure holiday operator in mainland Europe. Bookings come direct, through specialist and overseas agents and increasingly via the Internet. The cost base is flexible and cash generation and margins are attractive.
• 2005 Turnover: £62.6m
• 60,300 holidays sold in year to 30/9/05
• Increasing demand for active, special interest and unusual holidays
• Over 480 different tours to 131 countries
• Tight control of tour load factors underpins profitability
• Flexible cost base – Low commitment to flight seats
CORPORATE OVERVIEW DECEMBER 2005
CampingThe division provides self-catering mobile homes and tents pre-sited on high quality European camp-sites. Customers, predominantly families, come from the UK, Holland, Germany and seven other European countries. Sales are mainly direct, via the Internet or through high street travel agents. Eurocamp and Keycamp are the market leading brands in the sector. Customer satisfaction and repeat booking levels are strong, with high margins and healthy returns on capital.
• 2005 Turnover: £113.7m
• 523,000 holidays sold in year to 30/09/05
• Market leading brands – Eurocamp and Keycamp
• Customers from nine different countries, mainly UK, Holland and Germany
• 9,700 mobile-homes and 4,250 tents on 219 campsites in France, Italy and seven other countries• High levels of customer satisfaction and repeats