Holidaybreak losses narrow as volcano has little impact

LEISURE group Holidaybreak posted a narrower first-half loss and said the impact of the volcanic eruption in Iceland would not be material to its overall financial performance.

By The Newsroom

Published 13th May 2010, 10:45 BST

However, the company, which offers short breaks within the UK and Europe, said it continued to assess the potential impact of the volcanic ash that resulted in closure of much of Northern Europe's airspace.

"Our mix of businesses means that we have minimal exposure to air travel, which principally prevails in our adventure travel businesses," the company said in a statement.

For the six months ended March 31, the company posted a pre-tax loss of 17.7m before items, compared with a restated loss of 18.1m last year.

Revenue fell two per cent to 150.2m.

The company, which maintained its half-year dividend at 3.2 pence, said it would perform in line with its expectations for the year ending September 30.

Holidaybreak's hotel breaks business in York employs around 230 people. This division saw sales slide three per cent during the period as heavy snowfall and threatened rail strikes hit its performance.

Iceland York