Upload
gillian-amie-bradley
View
215
Download
1
Tags:
Embed Size (px)
Citation preview
The UK’s Leading Operator of Specialist Holiday BusinessesThe UK’s Leading Operator of Specialist Holiday Businesses1
The UK’s Leading Operator of The UK’s Leading Operator of Specialist Holiday BusinessesSpecialist Holiday Businesses
The UK’s Leading Operator of Specialist Holiday BusinessesThe UK’s Leading Operator of Specialist Holiday Businesses2
TODAY’S PRESENTATION
The UK’s Leading Operator of Specialist Holiday BusinessesThe UK’s Leading Operator of Specialist Holiday Businesses3
MARKET
• Tsunami disaster
• January trading period
HOLIDAYBREAK
• Acquisitions of Bookit (BRC) and Djoser
• AGM Statement – Trading update
• On-line sales growth
MAJOR DEVELOPMENTS SINCE 02/12/04 (PRELIM RESULTS)
The UK’s Leading Operator of Specialist Holiday BusinessesThe UK’s Leading Operator of Specialist Holiday Businesses4
TRAVEL INDUSTRY TRENDS
Vertically integrated model declining
Consumer holiday trends- shorter more frequent- later bookings- more independent/tailor made/flexible- holidays with purpose (activity/special interest)
Internet Low cost airlinesTRAVEL
Specialists prospering
The UK’s Leading Operator of Specialist Holiday BusinessesThe UK’s Leading Operator of Specialist Holiday Businesses5
• Specialist holiday businesses
• Market leadership
• Industry leading margins
• Cash generation and dividend payout
• Flexible cost structures
• Organic growth
• Supported by complementary acquisitions
GROUP STRATEGY
The UK’s Leading Operator of Specialist Holiday BusinessesThe UK’s Leading Operator of Specialist Holiday Businesses6
THREE OPERATING DIVISIONS
£63.0m*(19%)
£150.6m*(45%)
£123.2m(37%)
CAMPING
HOTEL BREAKS
ADVENTURE
*Pro-forma 2004 sales (TTV)including recent acquisitions
£63.0m*(19%)
£150.6m*(45%)
£123.2m(36%)
The UK’s Leading Operator of Specialist Holiday BusinessesThe UK’s Leading Operator of Specialist Holiday Businesses7
HOTEL BREAKS DIVISIONHOTEL BREAKS DIVISION
ACQUISITION OF BOOKIT
MARK WRAY
The UK’s Leading Operator of Specialist Holiday BusinessesThe UK’s Leading Operator of Specialist Holiday Businesses8
Hotel Breaks2005 TRADING AND OUTLOOK
• Sales: +7% (as at 10/02/05)(excludes impact of acquisition)
• Strong performances by:- London Theatre Breaks- European breaks (Cities and Beach)
• 2005/6 UK brochures launched- Hotel choice increased- Product developments
• New affiliate relationships
The UK’s Leading Operator of Specialist Holiday BusinessesThe UK’s Leading Operator of Specialist Holiday Businesses9
Hotel BreaksDIVISIONAL STRATEGY
• Increase distribution reach (NB. Bookit)
• Product development
• Increase range and value proposition of hotel relationships
• Maintain/reduce overhead cost ratios
The UK’s Leading Operator of Specialist Holiday BusinessesThe UK’s Leading Operator of Specialist Holiday Businesses10
Hotel Breaks2004 SALES (Pro-forma: TTV)
Overseas - 6%
Bookit - 20%
Other UK - 46%London - 28%
The UK’s Leading Operator of Specialist Holiday BusinessesThe UK’s Leading Operator of Specialist Holiday Businesses11
ACQUISITION OF BOOKIT
• The leading on-line intermediary for short stay leisure breaks in the Netherlands
• Completion - 21 December 2004
• Acquired for €33.5m (£23.1m)
• Paid in cash from existing bank facilities
The UK’s Leading Operator of Specialist Holiday BusinessesThe UK’s Leading Operator of Specialist Holiday Businesses12
Bookit MARKET BACKGROUND
• Favourable economic context for leisure break growth
• 50% of Dutch domestic holidays short stay (1-3 nights)
• Hotels : 7m leisure nights / €550m expenditure (2003)
• Bungalows/Summerhouses : 28m leisure nights / €1bn expenditure (2003)
• 76% (12.3m) of Dutch population on-line. - Broadband take up > 30%
The UK’s Leading Operator of Specialist Holiday BusinessesThe UK’s Leading Operator of Specialist Holiday Businesses13
BookitKEY INVESTMENT ATTRACTIONS
• Market leading internet sites for leisure breaks – advanced and scaleable web infrastructure
• High brand recognition and customer loyalty (50% repeats)
• E-mail database - 900,000 households• Strong - Supplier relationships
- Management team (staying with business) - Growth record (top and bottom line)
• Potential for - Product ‘stretch’ - Add Superbreak product - New market penetration
The UK’s Leading Operator of Specialist Holiday BusinessesThe UK’s Leading Operator of Specialist Holiday Businesses14
• 700 hotels / 150 bungalows in Netherlands (70%), Belgium and Germany
BookitPRODUCT
• - - Min 2 nights
• - - 1 night
• - - Chalets/ summerhouses/
mobile-homes
The UK’s Leading Operator of Specialist Holiday BusinessesThe UK’s Leading Operator of Specialist Holiday Businesses15
• Accommodation providers load rooms and prices online
• Good availability at excellent prices (average booking lead time - 18 days)
• Bookit commission income derived from: - Commission (8-12%)/fixed fee
- Customer booking fee
• Additional income from ‘sign on’ fees and overrides• Hotel collects full payment and Bookit invoices
monthly (ability to invoice earlier)
BookitBUSINESS MODEL
The UK’s Leading Operator of Specialist Holiday BusinessesThe UK’s Leading Operator of Specialist Holiday Businesses16
• 85% bookings on-line
• Brand awareness: 1st ranked internet leisure site (Jan 05)
• Search engine optimisation and online advertising
• E-database (900,000 households)
• Competitive prices
• Operational excellence
BookitMARKETING/DISTRIBUTION
The UK’s Leading Operator of Specialist Holiday BusinessesThe UK’s Leading Operator of Specialist Holiday Businesses17
BookitFINANCIAL RECORD
Year Ended 31 December
2001 2002 2003 2004
Total Rooms Booked (‘000) 73 138 262 335
TTV €11.5m €21.1m €31.3m €42.2m
€’000 €’000 €’000 €’000
Total Commission Income 2993 4810 6987 8784
Normalised Costs <2547> <3322> <4875> <5401>
EBIT 446 1488 2077 3383
The UK’s Leading Operator of Specialist Holiday BusinessesThe UK’s Leading Operator of Specialist Holiday Businesses18
• All three brands/sites performing strongly
• Bungalows growing fastest – av. commissions expected to increase
• Capacity availability good
• Integration going well
• Overhead costs under control
• 40 weeks of year to 30/09/05 to be included
Bookit2005 OUTLOOK
The UK’s Leading Operator of Specialist Holiday BusinessesThe UK’s Leading Operator of Specialist Holiday Businesses19
BookitSTRATEGY AND OPPORTUNITIES
• Stand Alone Business– More contracted product: Hotels; Bungalows– Product stretch: Luxury and family hotels; Campsites– German market
• With UK Parent:– London & provincial product– Access to theatre/concert tickets– European product range– Expand European accommodation portfolio– Resource for development:
• Capex• Organic start-ups• Acquisitions
The UK’s Leading Operator of Specialist Holiday BusinessesThe UK’s Leading Operator of Specialist Holiday Businesses20
ADVENTURE DIVISIONADVENTURE DIVISION
ACQUISITION OF DJOSER
SIMON TOBIN
The UK’s Leading Operator of Specialist Holiday BusinessesThe UK’s Leading Operator of Specialist Holiday Businesses21
Adventure2005 TRADING AND OUTLOOK
• Divisional sales (@ 10 Feb 2005 excluding acquisition)
– Division +22%
– Explore +25%
– Regal + 3%
• No evidence of post-Tsunami downturn
• Explore sales intake strong across all markets
• Regal seeing late demand to Red Sea and Caribbean
• On-line booking 20% +
The UK’s Leading Operator of Specialist Holiday BusinessesThe UK’s Leading Operator of Specialist Holiday Businesses22
AdventureDIVISIONAL STRATEGY
• Market leadership in European “Soft Adventure”
sector
• New product development drives growth
• On-line business grows to 50% in 3 years
• Broaden awareness of sector to wider audience
The UK’s Leading Operator of Specialist Holiday BusinessesThe UK’s Leading Operator of Specialist Holiday Businesses23
Adventure Holidays Division2004 SALES (Pro-forma)
Explore UK 46%
Djoser 41%
Explore Overseas Agents 4%
RegalDive 9%
The UK’s Leading Operator of Specialist Holiday BusinessesThe UK’s Leading Operator of Specialist Holiday Businesses24
• Market leading Dutch ‘soft adventure’ holiday operator
• Announced – 23 December 2004 (Completion – 19 Jan 2005)
• Acquired for €22.75m (£15.7m)
• Paid in cash from existing bank facilities
ACQUISITION OF DJOSER
The UK’s Leading Operator of Specialist Holiday BusinessesThe UK’s Leading Operator of Specialist Holiday Businesses25
Djoser MARKET BACKGROUND
• Dutch economic environment improving
• Great tradition of Dutch exploratory travel
• Activity sector grows as per UK
• 76% of Dutch population on-line
• Long-haul market growth
• Soft Adventure sector – circa 75k customers
The UK’s Leading Operator of Specialist Holiday BusinessesThe UK’s Leading Operator of Specialist Holiday Businesses26
Djoser KEY INVESTMENT ATTRACTIONS
• Djoser – market leader in Holland
• Familiar business model
• High brand awareness (4th most recognised in NL)
• Synergistic benefits with Explore
• Pioneering on-line activity in sector
• Potential for development in other European countries
• Experienced management team (staying with business)
The UK’s Leading Operator of Specialist Holiday BusinessesThe UK’s Leading Operator of Specialist Holiday Businesses27
Tour Destinations (2005)
Explore DjoserEurope 128 16Asia 65 22Africa 80 18Americas, Pacific & Australasia 68 27Egypt & Midle East 36 16Indian Subcontinent 25 13Arctic & Antarctica 8 0Total 410 112
DjoserPRODUCT
The UK’s Leading Operator of Specialist Holiday BusinessesThe UK’s Leading Operator of Specialist Holiday Businesses28
DjoserBUSINESS MODEL
• Small group package (air & land content)
• Overseas suppliers / Agents
• Trained & Experienced Tour Leaders
• Gross margins @ 25%
• Yield management controls margins
• Marketing led – outsourcing of IT / Technology
The UK’s Leading Operator of Specialist Holiday BusinessesThe UK’s Leading Operator of Specialist Holiday Businesses29
DjoserMARKETING/DISTRIBUTION
• 65% of bookings on-line
• High Brand awareness (1st specialist)
• Direct to consumer – no Agency / Intermediary
• Database 350k
• Unique public “Brand” persona – shows, exhibitions
The UK’s Leading Operator of Specialist Holiday BusinessesThe UK’s Leading Operator of Specialist Holiday Businesses30
Year Ended 31 December
2001€000
2002 €000
2003 €000
2004 €000
Total Revenue 31,062 34,347 36,507 37,120
Gross Profit 6,438 7,620 8,259 8,715
Normalised Costs -4,620 -4,750 -5,400 -5,825
EBIT 1,818 2,870 2,859 2,890
DjoserFINANCIAL RECORD
The UK’s Leading Operator of Specialist Holiday BusinessesThe UK’s Leading Operator of Specialist Holiday Businesses31
Djoser2005 OUTLOOK
• Sales intake since acquisition on track
• No post-Tsunami downturn
• New “Junior” programme encouraging start
• Integration with Explore on track
• Financial controls in place
The UK’s Leading Operator of Specialist Holiday BusinessesThe UK’s Leading Operator of Specialist Holiday Businesses32
DjoserSTRATEGY AND OPPORTUNITIES
• New product development drives growth
• Explore & Djoser develop synergistic plan
– Marketing – share resources
– Product Development – leverage Explore expertise
– Web – leverage Djoser expertise
– Overseas Suppliers – leverage buying power
• Expand to Germany
The UK’s Leading Operator of Specialist Holiday BusinessesThe UK’s Leading Operator of Specialist Holiday Businesses33
The UK’s Leading Operator of Specialist The UK’s Leading Operator of Specialist Holiday BusinessesHoliday Businesses
TRADING UPDATE & CAMPING
The UK’s Leading Operator of Specialist Holiday BusinessesThe UK’s Leading Operator of Specialist Holiday Businesses34
AS AT 10 FEBRUARY 2005
• Hotel Breaks: +7%
• Camping: – 9% (overall capacity reduced by 12%)
• Adventure: +22%
• Recent acquisitions (Bookit and Djoser) trading in line with management expectations
Year on year comparatives exclude recently acquired businesses
TRADING UPDATE – 10 FEBRUARY 2005
The UK’s Leading Operator of Specialist Holiday BusinessesThe UK’s Leading Operator of Specialist Holiday Businesses35
• Sales: -9% (as at 10/02/05)- UK travel agents and Germany below
expectations- UK directs and Easycamp performing well- Low season challenges
• Capacity: Mobile-homes: –11% (9,700) Tents: –14% (4,200)
• Operational / overhead cost reduction : £3m+
• Eventual outturn sensitive to sales intake over remainder of season as main camp-site costs (depreciation and site fees) now fixed
Camping2005 TRADING AND OUTLOOK
The UK’s Leading Operator of Specialist Holiday BusinessesThe UK’s Leading Operator of Specialist Holiday Businesses36
• Capacity requirements (overall and regional) reviewed in light of 2005 trading
• Continuing focus on stabilising occupancy rates, optimising yields and maintaining/improving margins
• Ongoing cost review
• E-commerce channel and affiliate relationship development to target new customer groups
• Strategic review ongoing prior to detailed 2006 planning
CampingDIVISIONAL STRATEGY
The UK’s Leading Operator of Specialist Holiday BusinessesThe UK’s Leading Operator of Specialist Holiday Businesses37
• Shares ex-dividend: 16 March 2005
• Interim Results – 19 May 2005
• Trading update – mid-September
• Preliminary Results – 1 December 2005 (provisional)
Holidaybreak plcCORPORATE CALENDAR
The UK’s Leading Operator of Specialist Holiday BusinessesThe UK’s Leading Operator of Specialist Holiday Businesses38
The UK’s Leading Operator of Specialist The UK’s Leading Operator of Specialist Holiday BusinessesHoliday Businesses
QUESTIONS