News

FIRST Choice has seen a £7 million drop in profits amid "tough and challenging" trading conditions.

Pre-tax profits - before one-off costs - fell to £72.5 million from £79.6 million. Turnover for the year dropped 8% to £2.183 billion from £2.369 billion. Final dividend was increased by 7% to 3p from 2.8p, making a total dividend of 4.5p, up from 4.2p.

Chairman Ian Clubb said: "We are pleased with the results we have achieved in what has been one of the toughest and most challenging years for the travel industry, in recent history."

He said the group's strategy of investing in and growing the profits from specialist businesses has contributed to "limiting the impact on profit from this year's difficult market conditions".

Specialist businesses now account for 52% of the group’s operating profit, up from 49% last year. Group operating profit from specialist businesses increased by 7% to £39.3 million, from £36.6 million.

Yesterday the group paid £1.6 million for cross-country skiing and walking specialist Waymark Holidays Limited. This follows the acquisition in May of adventure specialist Exodus Travels Limited and the acquisition in August of Porter & Haylett Limited, which operates under the Connoisseur brand name.