Longleat Forest helps Center Parcs return to the black
Holiday park operator Center Parcs has stormed back to profitability as each of its four sites, including Longleat Forest in Wiltshire, generated higher revenues and bigger earnings.
The holiday park operator had recorded a £47.9m pre-tax loss in 2011/12 as it restructured its debt to raise money for a fifth site in Bedfordshire's Woburn Forest.
Operating profit in the 12 months to 25 April 2013 stood at £111.1m, up from £97.7m. Finance expenses of £92.8m, including £83.7m of interest on borrowings, brought pre-tax profit down to £18.6m, a substantial improvement on the loss of £47.9m in the previous year.
Center Parcs restructured its debt in 2012 as part of its fundraising for the new leisure village in Woburn Forest. It incurred exceptional costs of £66.1m in relation to a winding up of an interest rate swap. Other finance expenses of £82.2m pushed the company into the red.
The pre-tax profit of £18.6m was above the £15m generated in 2010/11 - the year before it was hit with restructuring costs.