Full%20Year%20Results

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Full Year Results 2009 27 November 2009
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Disclaimer
This document contains forward-looking statements
with respect to the operations, performance and
financial condition of Holidaybreak. By their
nature, these statements are subject to risks,
assumptions and uncertainties that could cause
actual results to differ materially from those
expressed or implied because they relate to
future events. Unless otherwise required by
applicable law, regulation or accounting
standard, we do not undertake to publicly update
any forward-looking statements, whether as a
result of new information, future developments or
otherwise. The financial information referenced
in this presentation does not contain sufficient
detail to allow a full understanding of the
results of Holidaybreak. For more detailed
information, please see the Full year results
announcement for the year ended 30 September 2009
which can be found on the Investor Relations
section of the Holidaybreak website www.
holidaybreak.co.uk
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INTRODUCTION

• Resilient performance in a difficult economic
  environment
• Strong late bookings in Camping Adventure
  Travel
• Successful completion of 31.2m Rights Issue,
  Liddington acquisition first use of proceeds
• Full year dividend payment the same as last year
• Encouraged by recent trading patterns
• Medium term growth potential undiminished

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GROUP RESULTS
1 Stated before amortisation of acquired
intangible assets of 3.5m (2008 4.2m),
exceptional restructuring costs of 1.6m (2008
2.3m) and impairment of goodwill of 9.6m (2008
2.5m). IAS39 mark-to-market revaluations of
financial derivatives of 8.3m (2008 0.2m) and
for EPS the tax effect thereof of 3.6m (2008
1.6m). 2 2008 EPS is restated for the
Rights Issue. 3 2009 interim and 2008
Full year dividends restated for the Rights Issue.
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DIVISIONAL RESULTS
1 Stated before amortisation of acquired
intangible assets of 3.5m (2008 4.2m),
exceptional restructuring costs of 1.6m (2008
2.3m) and impairment of goodwill of 9.6m (2008
2.5m).
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ONE-OFF CHARGES

• Restructuring and redundancy costs at NST and
  Explore
• Goodwill impairment at Explore
• IAS 39 revaluations of financial derivatives

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MOVEMENT IN NET DEBT
1 Stated before impairment of goodwill of 9.6m
(2008 2.5m) and IFRS 2 charge re share based
payments of 0.3m (2008 credit of 0.1m)
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BALANCE SHEET
During the current year the Group completed
its initial accounting in respect of the
acquisition of EST. This resulted in an
increase in the fair value of intangibles with a
corresponding increase in deferred tax.
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INTEREST CURRENCY HEDGES

• 29 of Bank debt is at floating interest rates
• Effective average interest rate c.8 at revised
  margin and bank rate at 27 November
• 26 of Group EBITA in zone
• Other net exposure
• - c. 46m
• - c. 18m
• 73 of Groups and requirements for 2010
  bought at average rates of 1.14 and 1.63

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COST REDUCTION CASH CONSERVATION

• Annualised overhead savings of 2.5m
• Explore restructured - staffing reduced by 35
  aimed at maintaining operating margins
• Redundancies in management team at NST
• Superbreaks call centre resource reduced by a
  third
• Camping headcount reduction in UK and Ireland
• Camping mobile-home net capital expenditure (5m)
  below depreciation (7m), 450 new units vs 630
  originally proposed
• Deferred payment terms
• Substantial reduction in corporate tax payments
• Prudent dividend policy

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FINANCIAL SUMMARY

• Revenue 4
• Headline EBIT 3.8
• Headline operating margin 9.1
• Net Debt at 30 September 2009 138.1m
• Sufficient financial headroom against covenants
  to enable investment in Education
• 2010 currency exposure 73 hedged

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EXECUTIVE CHAIRMAN JOHN COLEMAN
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STRATEGY ON TRACK

• DEVELOP A MULTI-PATH APPROACH
• Organic development PGL non-schools product
  Bookits Belgian brand TravelWorks high school
  programme and Campings Ecamp brand
• Investment and acquisitive growth opportunities
  in our education businesses
• PURSUE SUSTAINABLE FASTER GROWTH
• Liddington centre expected to achieve IRR of over
  20
• Continue to prioritise investment in Education
  where growth continues
• BUILD ON CORE COMPETENCES
• Supplier relationships Superbreaks packaged
  product
• Yield management Camping
• DIVERSIFY SALES MIX
• All businesses focused on developing
  multi-channel distribution

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EDUCATION

• 2008/09 Revenue up 12 Operating profit up
  25
• PGL invested 17.0m in its education
• centres, including Liddington. Weexpect to
  spend 1.4m on increasingbed capacity and
  developing Liddingtonin 2010
• Liddington already 87 booked for2010
• Parents prioritise expenditure on trips. Strong
  demand conditions for school trips to private
  residential educational centres
• 2009/10 Trading level (PGL education centres
  5)

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HOTEL BREAKS

• 2008/09 Revenue -5.7 Operating profit
  -18.7
• Volume of domestic short breaks in the UK and the
  Netherlands growing strongly on the back of
  increasingly competitive deals
• Packaged product continues to be Superbreaks
  strategic focus (now at 55 of business) higher
  transaction values
• Bookit and WETB growingdistribution through
  other channels Bookit launched in Belgium and
• WETB improved trade sales throughAirmiles,
  concierges and web
• 2009/10 Trading 4

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ADVENTURE TRAVEL

• 2008/09 Revenue up 3.5 Operating profit
  -12.5
• Relatively high cost of trips means that they are
  more likely to be deferred in a recession
• Explores 1m cost saving programmereduces costs
  and enables it to tradeprofitably at lower
  volumes
• TravelWorks benefited from good growthfor its
  high school exchange programme
• Good business well placed to prosper when
• the economy recovers
• 2009/10 Trading -12

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CAMPING

• 2008/09 Revenue up 10.7 Operating profit
  -6.5
• Strong late bookings
• Flexible holiday formula can be tailored to suit
  customers budgets
• Strong high season demand from the Netherlands
• Ecamp brand shows good growthpotential strong
  demand from Dutchand German consumers
• 2009/10 Trading
• -7 on -8 capacity

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TRADING UPDATE
2010 Sales to date
EDUCATION Level PGL UK education centres at 92 sold to target Bed capacity at 7,500
HOTEL BREAKS 4 London selling well on the back of price Packaged product remains key focus
ADVENTURETRAVEL -12 Cost reduction programme completed Market conditions remain challenging planned accordingly
CAMPING -7 Pre-sited capacity approximately -8 Continue to manage capacity, occupancy and yield tightly
Based on revenue intake/booking position as at
close of business on 26th November 2009
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SUMMARY

• Resilient business model demonstrated by strong
  2009 performance
• Continued focus on delivering good value, quality
  products with great customer service
• Focused on cost control and cash generation
• Ongoing search for new CEO
• Encouraged by recent trading the Group is well
  placed for economic recovery

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QA
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APPENDICES
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BANKING FACILITIES

• 255m Five year facility committed to 2013
• - 30m Term Loan
• - 225m RCF, Bonding and Ancillary Facility
• - 30m in CAA, ABTA bonds
• Margin LIBOR 312.5bps
• - margin ratchet at lower levels of debt
• Costs c.4.8m at 30th September
• - Annual amortisation cost of 1.2m

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INTEREST HEDGES

• 5 yr swaps are callable by Bank after three years
• 50m collar is callable by Bank after three years
• 29 of bank debt is floating
• Effective average interest rate is 8.1 at
  revised margin and bank base rate at 27th
  November

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LIDDINGTON

• 100 acre site with outdoor activity field,
  floodlit pitch, two lakes, parking etc.
• Good access via motorway to London
• Access to 17.8m population and 27 of schools in
  2 hours drive time.
• Ready to trade with minimal capex
• Potential for significant bed stock expansion at
  low cost
• Planned investment of 3.2m over 2010 2012
• Target IRR in excess of 20
• Caythorpe Court opened in 2006 total investment
  of 13.8m now achieves target IRR

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SIGNIFICANT FURTHER OPPORTUNITIES
N. and E. London (M25)
IOW/choice coastal sites