CHESHIRE-BASED Holidaybreak has begun its sell-off of non-core businesses as it looks to refocus on the education market.
The education and activity travel group today announced the sale of its subsidiary West End Theatre Bookings for £10.9m to theatre booking firm Encore Tickets.
Martin Davies, chief executive of Holidaybreak , said: “The sale demonstrates our commitment to strengthen the education share of the Group as part of our longer term growth strategy to become the leading educational travel provider in Europe.
“At the same time, we are saddened to see West End Theatre Bookings leave the Holidaybreak Group but we believe Encore Tickets, a leading ticket agency, will provide a good home with both businesses strategically focused on providing theatre tickets to the consumer.”
Mr Davies became group chief executive in April, 2010, and one of his challenges has been to reduce the company’s debt, with the proceeds of today’s deal being used for that purpose.
At the end of its last financial year, September 30, it had net debt of £99.7m. It recorded pre-tax profits of £26m on revenues of £461.7m.
But Mr Davies – who was chief executive of PGL before moving across when Holidaybreak bought the company in 2007 – is also looking to grow the group’s presence within the education market.
Last December Holidaybreak paid £30.9m for a 50% stake in Berlin-based educational tour accommodation group Meininger. It also has an option to buy the remaining shares in Meininger over the next two or three years.
