Holiday firm profits take off after shake-up

Tour operator First Choice Holidays today announced record profits and said a shake-up of its business was bearing fruit.

The group, whose brands include Unijet, Falcon and Sovereign, said pre-tax profits before goodwill and one-off items rose 13% to £98.3m (€1.4bn) against £87.1m (€1.3bn) last time.

First Choice has split itself into four holiday sectors – mainstream, specialist, activity and online destinations – to offer a varied range of tours.

It has also made 11 bolt-on acquisitions in the year to October 31 including the Adventure Company and StudentCity.com.

It said the strategy had paid off, achieving its second year of double-digit growth, earnings per share up 15% to 10.8p and a 10% rise in the full-year dividend to 5.5p per share.

Operating profits from the group’s specialist businesses now account for more than half of group profits.

Chief executive Peter Long said the business was highly cash generative and it was using the proceeds to invest in growth businesses.

“The group has now established itself firmly as an international leisure travel company and is building a strong position,” he said.