Friday, Holidaybreak Plc (HBR.L), a leisure and activity travel group, reported a sharp decline in profit for fiscal 2009, despite a 4% increase in revenues, hurt principally by much higher goodwill impairments and charges arising from revaluations of the group's financial derivatives.
For the full year, profit attributable to the equity holders of the parent dropped to GBP 2.8 million or 4.7 pence per share from GBP 18.0 million or 31.3 pence per share a year ago.
The group's Adventure Travel segment recorded an impairment charge of GBP 9.6 million related to goodwill recognized on the acquisition of Explore Worldwide Ltd in 2000. Impairment of goodwill in fiscal 2008 was GBP 2.5 million. The results of the latest quarter included amortisation of other intangible assets acquired via business combinations of GBP 3.5 million, compared with GBP 4.2 million last year.
Exceptional restructuring costs decreased to GBP 1.6 million from GBP 2.3 million. Charge pertaining to mark-to-market revaluations of the group's interest rate derivatives and forward foreign currency exchange contracts swelled to GBP 8.3 million from GBP 0.2 million.
Headline earnings, which exclude one time items, dipped to GBP 22.2 million or 37.0 pence a share from GBP 25.6 million or 44.7 pence a share in fiscal 2008.
Profit before taxation declined to GBP 5.4 million from GBP 23.4 million in the previous year. Headline profit before tax came down to GBP 28.4 million from GBP 32.6 million.
However, the company's revenue for fiscal 2009 was GBP 473.4 million, up 4% from GBP 455.1 million in the prior year, as the travel firm benefited from strong late bookings in Camping and Adventure Travel businesses.
Segment-wise, Hotel Breaks' revenue was GBP 141.3 million, down from GBP 149.9 million, as lower average spend per booking offset higher booking volumes and better availability. Camping's revenue climbed 11% year-over-year to GBP 111.9 million from GBP 101.1 million. At constant currency rates revenue increased 2%.
Adventure Travel's revenue improved 3% to GBP 97.9 million from GBP 94.6 million. Revenue was down 6% at constant exchange rates compared with the past year. Holidaybreak noted that its Education division is not materially affected by the recession because parents continue to prioritise spending on their child's school trip. Revenue from the segment surged to GBP 122.3 million from GBP 109.5 million in previous year.
The company revealed that sales intake for fiscal 2010 till date is currently down 3%, compared to fiscal 2009. The Education Division is 79% booked, with sales in line with last year. The Hotel Breaks Division's sales intake is higher by about 4% from the same period last year reflecting stronger demand for short breaks into London. Sales intake for the Adventure Travel Division is 12% below the prior-year level, and for the Camping Division is about 7% down on 8% lower capacity for the 2010 season.
Going forward for fiscal 2010, Holidaybreak currently projects net capital expenditure of around GBP 18.4 million.
Further, the company proposed a final dividend of 7.9 pence per share payable on 7 May 2010, to shareholders of record on 9 April. For fiscal 2008 the firm had declared a final dividend of 5.73 pence per share. The total annual dividends decreased to 11.80 pence a share from 13.53 pence a share paid last year.
HBR.L is trading at 245.0 pence on the LSE, down 2.75 pence or 1.11%.
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