Holidaybreak issues profit warning

HOLIDAYBREAK, the number one provider of camping holidays in Europe via its Eurocamp and Keycamp brands, today issued a profits warning as fewer Brits choose to spend their holidays under canvas.

The group said that although its hotel breaks and adventure divisions were doing well, its full-year results would be 'materially below' its previous expectations due to a shortfall in its camping division.

Chief executive Richard Atkinson said spur-of-the-moment short breaks were rising in popularity, often booked over the internet, at the expense of the traditional two-week family holiday, Holidaybreak's core market.

Bookings have also been hit by the weak dollar - prompting many people to holiday in the US - and the recovery of long-haul destinations. 'High season is OK but low-season is very difficult for us,' Atkinson said.

In a trading update, the company said consumers were making later decisions regarding their holiday bookings and all potential sales are being vigorously pursued.

'At the same time, we are reviewing all costs and some savings will be realised,' it added.

In the current financial year, sales in the group's hotel breaks division are 38% ahead of the same period last year. Adventure holiday sales are up 17%.