Parkdean Resorts shows strong annual results & £80m investment plans

UK’s largest holiday park operator, Parkdean Resorts has released its annual results or the year ending 31 December 2019, showing a 5% revenue rise and EBITDA by 7%. The firm has also announced that investment plans worth £80m for this year.

The group's like-for-like revenue growth up by 5% to £453.2m (2018: £432.2m), and adjusted group EBITDA increased to £103.7m (2018: £96.6m).

Growth was driven across all income streams:
- Holiday packages sold increase by 6% year on year;
- PDR sold 599,000 holidays of which 80% were short stay (less than 4 days) playing to the increasing trend for UK staycations
- NPS score of 67% indicating excellent customer satisfaction and loyalty

On-park spend revenue grew by 6% year-on-year, which includes multiple; shops, concessions, restaurants, bars and arcades as well as swimming pools, gyms and other leisure facilities.

Owner Income was stable, above inflation growth, Of the businesses, 31,000 pitches 20,000 have been licenced to owners to place their caravan, lodge or chalet upon.

For holiday home sales, volumes increased by 4% on the back of a strong H2. The group will sell approximately 4,300 caravans and lodges priced from £25k for an entry level caravan to £600k for a premium lodge, and everything in between.

A new senior management team now in place with the appointment of Catherine Lynn (CCO), John McKenzie (MD Holiday Homes), Mos Shamel (COO), David Lodge (Property Director) and Lisa Charles-Jones as HRD.

The company has an unrepeatable real estate footprint with multiple opportunities to develop further and invest via a self-funded strategy which will see a doubling of investment into the business in 2020.

The strategy will deliver holiday parks that provide ‘inter-generational ‘family fun and freedom’ for its holiday homeowners and holiday guests:
- £80m to be invested in 2020 (2019: £42m) in a pilot ‘parks of the future’ initiative in four locations to create state-of-the-art amenities including accommodation, park facilities and kids’ activity-based entertainment such as the Bear Grylls Survival Academy
- Major tech and infrastructure projects which include new pitches, an enhanced retail offer and digital capability improvements - including the provision of free high speed Wi-Fi across the whole estate.

Growth opportunities have been identified including extending the holiday season, improving occupancy in off-peak periods and further upgrading the Company’s full range of accommodation. The firm also plans to invest to extend and improve its on-park facilities, particularly the availability of paid-for family friendly activities.

Steve Richards, Chief Executive, said, “Much progress has been made over the last year and it is fair reward for the passion and unrelenting desire our teams bring in delivering great holiday experiences for our customers.

“The momentum achieved in 2019 has continued into the current year which has started strongly with 32% of summer capacity already sold as we take share in what is a growing and resilient market.”