Newspaper article The Journal (Newcastle, England)

Merged Holiday Firm Sees Significant Growth; LEISURE

Newspaper article The Journal (Newcastle, England)

Merged Holiday Firm Sees Significant Growth; LEISURE

Article excerpt

Byline: robert gibson robert.gibson@ncjmedia.co.uk

ASECTOR-LEADING holiday park operator formed when the Newcastle-based Parkdean merged with southern firm Park Resorts last year has reported significant growth for its first year as a combined company.

Parkdean Resorts, which owns and manages 72 UK holiday parks, saw total revenues for the year ended December 31, 2015, hit PS400.7m, up from PS370.7m the year before.

EBITDA, meanwhile, increased 15.7% to PS106.6m, as cash generation remained strong.

With improved geographic coverage, the new national business, which operates from major offices in Newcastle and Hemel Hempstead, says it is well-positioned to drive benefits of scale from the UK's highly fragmented holiday park sector. The merger means Parkdean is likely to become one of the largest 20 companies in the North East.

In 2015, most of the growth it delivered was organic, with only one acquisition - that of Summerfields near Great Yarmouth. During the period, the group saw improvement across a number of diversified but complementary income streams: owner income, holiday sales, caravan and lodge sales, and on-park spend.

Owner income, in particular, rose significantly by 9.4%, while holiday hire revenue increased by 11.5%.

The group also sold around 5,300 holiday homes and 492,000 holidays, catering for over 2m customers.

It likewise invested PS36m in additional pitches for private holiday home owners, the expansion and upgrade of its holiday hire fleet, and its on-park retail facilities.

This year, it says, it will invest around PS40m on revenue-enhancing opportunities across its estate.

This will include the provision of 400 replacement and upgraded caravans and lodges, a boost of around 200 to the caravan and lodge hire fleet, an additional 240 pitches for holiday homes and upgrades to retail facilities. …

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