SPECIALIST travel company Holidaybreak has a £50m war chest for acquisitions and expects to complete its first deal in the next two months.
The company is looking for more deals following the success of last September's £47m purchase of NST, a supplier of group travel to British schools.
Chief executive Carl Michel said he was delighted with the acquisitions of NST and another educati
on business PGL, which was bought for £50m last June and now the group is ready for more deals.
"There are lots of businesses out there which we could sensibly see fitting into our own portfolio," he said.
Mr Michel said the potential targets are bolt-on acquisitions in the education and adventure categories with valuations ranging between £5m and £10m.
He was speaking yesterday as the group announced an expected £18.2m loss in the six months to March 31, up from £7.9m the previous year.
The group usually makes a loss in its first half due to the seasonal nature of the camping and education business and the increase was due to losses associated with the new education businesses. Revenues rose 55 per cent to £156m.
The Education division, formed from the acquisitions of PGL and NST last year, now accounts for just under a quarter of the group's revenues. It is currently 94 per cent booked for 2008 and 32 per cent for 2009.
The group's biggest business is hotel breaks, based in York, which offers short holidays in Britain and Europe. The business reported a seven per cent increase in sales thanks to strong demand for package breaks in London taking in exhibitions such as Tutankhamun and China's Terracotta Warriors and shows such as Joseph and Jersey Boys.
Adventure Travel sales rose three per cent, but full year revenues will take a £2m hit as a result of civil unrest in Kenya and Tibet and a cruise ship hitting the ice in Antarctica last year.
Camping sales to date are two per cent up on last year following a five per cent reduction in capacity.
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