Companies: HBR   

Specialist holiday provider Holidaybreak cheered investors with record turnover and profits for the year to September. Turnover swelled 13.6% to £218.7m and pre-tax profits put on 13.7% to £27.1m. Strong cash generation slashed net debt by £21.8m to £3.3m. Its core camping business outperformed the mass market air package operators. Sales were raised 5.3% to £109.2m at this arm, which CEO Richard Atkinson calls the 'big profits engine of the group'. And on the last day of the year major camping competitor 'Eurosites' was bought from MyTravel (MT.) for £29.9m. At 'hotel breaks', sales surged ahead by 33.2% to £76.9m on buoyant UK consumer demand and another rise in on-line internet demand. The adventure division was the one area where profits went backwards, despite a 5.1% revenue rise to £32.6m. Its 'Explore Worldwide' and 'Regal Diving' businesses were hit by September 11th, as customers cancelled holidays, popular destinations became off-limits and the airline sector was thrown into chaos, hitting many tour ventures. Chairman Angus Crichton-Miller, who will be replaced by former BA chief executive Robert Ayling next June, expects 'further profitable progress in 2003'. Supported by the group's strong cash generation, he says 'longer term prospects remain excellent'. We agree. Buy.