CHESHIRE holiday specialist Holidaybreak today acquired a 50% stake in Berlin-based educational tour accommodation group Meininger for £30.9m.
The Northwich-based education and activity travel group also has an option to buy the remaining shares in Meininger over the next two or three years.
It said the acquisition is part of its plan to shift focus to the education sector, which is less affected by discretionary spending.
Holidaybreak also released its annual results for the year to September 30 today, which showed group revenues down slightly, from £473.4m to £461.7m and a recovery in pre-tax profits which came in at £26m against £5.2m in 2009.
A focus on cash management led to a £38.4m reduction in net debt to £99.7m.
The group said it’s goal now is to become the leading brand in the European school trip market, covering all major destinations such as Paris, London, Berlin, Amsterdam and Milan.
Meininger operates throughout Germany, the UK and Austria.
Divisional performances showed that the education sector achieved revenues of £121.1m compared with £122.3m and an operating profit of £14.7m against £10.5m.
Sales at the adventure travel arm fell slightly from £97.9m to £97.4m, but a £6.7m loss was turned round into a £4.3m operating profit.
Turnover in hotel breaks slipped from £141.3m to £135.8m and operating profits of £10.9m compared with £11.8m last year., while in camping, sales of £107.4m were down from £111.9m and an operating profit last year of £12.8m fell to £10.8m in 2010.
Chief executiveMartin Davies said: “I am pleased with these results which demonstrate solid profit growth, improved cash management, stringent cost control and a strong operating margin performance.
“The growth in profitability is evidence of our strategic focus on our education businesses which are much less exposed to discretionary spending and where we can create unique, bespoke products and services for our customers.
“I am also delighted that we have agreed to acquire a stake in Meininger which was announced today. Our goal is to become the leading brand in the European school trip market. This transaction takes us a step closer to that goal.”
e added: “The group as a whole has performed well, despite the difficult economic environment.
“Although the outlook for 2011 remains challenging, visibility remains very high for our education businesses. Current trading is in line with management expectations.
“Group sales intake for 2010/11 to date is currently 1% down on last year. The acquisition of Meininger will increase our proportion of non-leisure revenues and we will continue to invest in our education businesses which have defendable, leadership positions in attractive sectors with strong market drivers for growth.
“However, we will continue to manage the entire business tightly, with a focus on cash generation and cost control.”
