CHESHIRE travel firm Holidaybreak says it could take advantage of the recession to make more acquisitions.
The group, which owns the PGL education travel brand, yesterday said half-year losses before exceptional items widened to £18.1m, from £14.9m a year earlier.
It said demand for adventure travel had fallen thanks to the weak pound, but added its education and hotel breaks divisions had performed well in the six months ended March 31.
The group said it had recently turned down chances to make acquisitions, but was now well set to consider new opportunities.
Chairman John Coleman said: “Over the course of the last five months, the board has seen an increase in the number of potentially value-enhancing investment or acquisition opportunities, but has not taken advantage of them as the board's focus has been on managing the business appropriately for the current economic downturn.
“The board anticipate that the trend for accretive new investment or acquisition opportunities will increase over the rest of this financial year and beyond, and is looking at how best to take advantage of these opportunities.”
Holidaybreak traditionally reports an operating loss in the first half due to the seasonal nature of its camping and education businesses.
It said demand for trips at its adventure travel arm, Explore, had fallen 16%. The arm posted losses of £10.8m in the half-year, thanks to a £9.6m writedown on the value of the business, but Holidaybreak said higher prices caused by the weakness of sterling affected trading.
While half-year sales in hotel breaks are currently 6% below last year, the company said trading was improving as a result of improved offers from suppliers in the form of lower room rates and train fares.
It is also benefiting from an improved London show line-up compared to 2008, including musicals such as Oliver!
Camping sales to date are 1% down on last year, as capacity has been reduced by 4%.
Its education division, including PGL, is 95% booked for 2009 and 34% for 2010, with sales 7% above last year on a like-for-like basis.
Chief executive Carl Michel said: “The group has performed well in the first half despite being impacted by the recession.
“The decline in consumer confidence has reinforced the trend towards later bookings, particularly in the camping division.
“We have taken and are taking the necessary steps to cut costs and restructure operations, particularly in the adventure travel division. Meanwhile, education, our largest division, is doing well and we are seeing signs of improved trading in hotel breaks.”
