Presentation is loading. Please wait.

Presentation is loading. Please wait.


Similar presentations

Presentation on theme: "1 THE UK’s LEADING OPERATOR OF SPECIALIST HOLIDAY BUSINESSES NOVEMBER 2002."— Presentation transcript:


2 2  One of only three quoted UK tour operators  Three operating divisions - Camping, Hotel Breaks and Adventure Holidays  2001 turnover £192.5m - pre-tax profits £23.8m (£21.6m after goodwill amortisation and exceptional operating costs)  Consistent growth record - five years of growth in profits, eps and dividend  Aiming to grow organically and through further acquisitions  Acquired Eurosites from MyTravel plc on 30th September 2002  Further profits and dividend growth in 2002 Holidaybreak plc OVERVIEW

3 3

4 4 Holidaybreak plc OUR RECORD (1) Turnover Profit Before Tax* £m *12 months pro-forma * Before goodwill amortisation and exceptional operating costs COMPOUND GROWTH 17% COMPOUND GROWTH 15% **12 months pro-forma

5 5 Holidaybreak plc OUR RECORD (2) Earnings per Share*Dividend Pence **12 months pro-forma * Before goodwill amortisation and exceptional operating costs COMPOUND GROWTH 12% COMPOUND GROWTH 12.5%

6 6  UK travel industry overview  Our businesses  Common characteristics of Group companies  Financial information  Current trading and prospects Holidaybreak plc TOPICS COVERED

7 7  Consumers - more knowledgeable, more demanding, less brand loyal  Independent and tailor-made holidays increasingly favoured  Increase in multiple holiday taking and short breaks (domestic and overseas)  ‘Grey’ market increasing in importance  Other growth areas are long-haul and activity/ special interest  Late booking trends partly driven by bargain hunting and partly by lifestyle changes and more frequent travel UK Holiday Sector CONSUMER TRENDS

8 8  Four major players in UK: Thomson (TUI/Preussag), My Travel (Airtours), Thomas Cook (C&N) and First Choice - 70% share of inclusive holidays sold and own 45% of high street agents. Further consolidation likely.  Vertical integration strategy exposed by recent industry trends  Many specialist operators and independent agents continue to thrive  Low cost airlines (Easyjet, Ryanair, Go etc) have challenged existing industry model and changed consumer behaviour  Distribution channels fragmenting - internet, teletext, TV channels, Off the page UK Holiday Sector INDUSTRY DEVELOPMENTS

9 9  Quality market leading businesses in sectors with good growth potential  Avoid volatile, low margin, short-haul package holiday market  Organic growth combined with ‘bolt-on’ acquisitions to existing divisions and acquisition of travel businesses in new sectors  Characteristics of Group businesses provide an excellent platform for growth and acquisition template Holidaybreak plc POSITIONING AND STRATEGY

10 10  Original and largest part of the Group - 54% of 2001 sales  Three market leading brands - Eurocamp and Keycamp - Acquisition of Eurosites (Sept 2002)  Pre-sited mobile-homes and tents on quality, third party owned camp-sites in France, Italy and seven other countries - flexible contracts  c.50% of customers non-UK (mainly German and Dutch) Holidaybreak plc CAMPING DIVISION

11 11  Courier and children’s activity service  Tailor made packages - any day to any day  Self-drive holidays - ferry inclusive from UK  Mainly direct sell but some retail agent sales. Internet increasingly important  Mid to upper income, family customer base Holidaybreak plc CAMPING DIVISION

12 12  Acquired 1995 - 30% of 2001 sales  Superbreak and Hotel Breaks the main brands  Breaks in 1400 UK hotels (200 in London)  No commitment allocations  Price guarantee to customers  Rail inclusive and theatre breaks available Holidaybreak plc HOTEL BREAKS

13 13  60% of sales through UK travel agents - sector share 65%  Direct and internet sales growing fast (nearly 40%)  Two on-line internet booking sites - (UK and Eurobreaks) and (worldwide)  Accommodation only European cities programme recently launched (450 hotels/40 cities) Holidaybreak plc HOTEL BREAKS

14 14  Explore Worldwide and Regal Diving acquired in 2000 - 16% of 2001 sales  Explore is the UK market leader in worldwide adventure travel and largest European operator  Small groups with own tour leader - 100 countries  Scheduled flights  Sells direct and through overseas GSAs Holidaybreak plc ADVENTURE

15 15  Regal is the leading UK operator of scuba diving holidays  All levels catered for - Red Sea (Egypt - 80% of sales). Maldives, Caribbean, Far East growing fast  Charter flights to Red Sea, scheduled flights to other destinations  Sells direct and through specialist dive shops/centres Holidaybreak plc ADVENTURE

16 16  Market Leading businesses - Eurocamp, Keycamp, Superbreak, Explore Worldwide and Regal  Growth opportunities - in all divisions  Healthy margins - much higher than sector norm  Low fixed cost commitments - flexible business models  Strongly cash generative - especially Hotel Breaks and Adventure Holidaybreak plc COMMON CHARACTERISTICS

17 17 Common Characteristics MARKET LEADERSHIP

18 18 Common Characteristics GROWTH PROSPECTS

19 19 Common Characteristics HEALTHY OPERATING MARGINS  Adventure margin in 2000 shows part year only, following acquisitions  Holidaybreak margins are well above industry norms and compare favourably with charter air package operators

20 20 Common Characteristics LOW FIXED COSTS

21 21 Common Characteristics CASH GENERATION

22 22  2001 ROCE 21.7% (2000 : 20.4%)  Pre-acquisition annual capex (mainly Camping) requirement (+ £15m net) - depreciation + £12m  2001 interest cover 8.6 times - will increase in 2002  Net currency exposure limited  Strong operational cash flow but seasonal  Headroom within banking facilities for further acquisitions Holidaybreak plc FINANCIALS

23 23 Holidaybreak plc 2001 PROFIT & LOSS ACCOUNT All stated before exceptional operating costs and goodwill amortisation PRELIMINARY RESULTS

24 24  £5.9m loss * entirely normal (2001 : £6.7m*) * Before tax and goodwill amortisation  Hotel breaks-substantial growth at the top line -margin improvement  Adventure-pleasing sales performance following post September 11th disruption - reduced margins due to load factor pressures  Camping -similar loss to 2001  Interest charge down  Substantial net debt reduction Holidaybreak plc HALF-YEAR RESULTS

25 25  Camping sales 6% up  Hotel Breaks over 30% up, margins improved  Adventure sales 3% up, but margins have suffered  Confident that ‘upper end of market expectations’ will be met  Preliminary Results announcement December 5th 2002  Generally positive outlook for 2003 although some caution due to political and economic uncertainties Holidaybreak Performance & Prospects 2002 TRADING UPDATE - 04/09/02

26 26  Holidaybreak businesses and sector in which they operate have generally proved resilient in the past  Camping sales currently level with 2002 - early in booking cycle  Hotel Breaks sales 35% ahead - UK consumer demand still healthy  Adventure sales up 9% - Middle East situation causing some concern  Strong first half anticipated Holidaybreak Performance & Prospects OUTLOOK FOR 2003 - 30/09/02

27 27  Eurosites brand plus Dutch, German and Danish sales agencies  2,770 mobile-homes (av age: 3.6 years) and 1,399 tents plus equipment (H/break: 7,372 mobiles and 6,698 tents)  Eurosites in 2002: -Sales £27.1m and estimated operating profits of £3.7m -35,000 bookings (c.150,000 pax) -Used 86 camp-sites in France, Italy, Spain, Germany, Holland and Luxembourg of which 54 were also used by Eurocamp and/or Keycamp  Distribution agreement with MyTravel UK retail (Going Places/Travelworld)  Database of 150,000 customers and c.1m enquirers Acquisition of Eurosites TRANSACTION DETAILS

28 28  Relatively new mobile-home fleet  Holidaybreak now the only serious player in tent holidays  Ability to manage sector capacity levels to ensure healthy occupancy at sensible prices  Access to pitches  Cost efficiencies - elimination of duplicated costs/ economies of scale Acquisition of Eurosites BENEFITS (1)

29 29  Purchasing benefits - transport operators, camp- sites, manufacturers etc  Enhanced UK retail distribution  Eurosites the only substantial direct competitor in Germany and Denmark  Office in Copenhagen will be retained and used for all Holidaybreak brands Acquisition of Eurosites BENEFITS (2)

30 30  Operate Eurosites as stand alone business for summer 2003  Immediately combine overseas operation  Transfer UK business operation from Accrington to Northwich at end of 2002  Similar transfers in Germany and Holland (but keep office in Denmark)  Various options for 2004 -continue with current positioning -reposition Eurosites brand -consolidate into Eurocamp and Keycamp - combination of the above Acquisition of Eurosites STRATEGY AND INTEGRATION

31 31  Quality market leading businesses in attractive sectors with good prospects for growth and also good defensive qualities  Consistent record of earnings and dividend growth - strongly cash generative  Further profits growth in 2002 expected  Holidaybreak well placed to benefit from current holiday sector trends - very strong cash generation a key characteristic of the business  Recent acquisition of Eurosites is significantly earnings enhancing  We view the future with confidence Holidaybreak plc SUMMARY


Similar presentations

Ads by Google