Center Parcs: Holiday giant’s profit hit as consumers tighten the purse strings
Holiday park operator Center Parcs has seen a sharp fall in its pre-tax profit as “lower levels of disposable income” eroded consumer spending, according to newly-filed documents.
Revenue at Center Parcs’ UK and Ireland division increased to just over £704m in the 12 months to April 18, 2024, up from £669m in the previous year.
Of this, £417.9m was generated by accommodation purchases and £286.2m was from on-site spending.
However despite this rise in revenue the group’s pre-tax profit fell by 18.7 per cent to £98.4m, from £121m in the year before.
Earnings before interest, tax and other charges were 1.9 per cent better at £310.5 million, up from £304.6 million in 2023.
Center Parcs said it had achieved 97 per cent occupancy during the year and had welcomed 2.3m guests.
CEO Colin McKinlay said in a statement on Companies House: “During the year to 18 April 2024, the entire Center Parcs team have worked tirelessly to deliver a fantastic set of results.
“The group delivered its highest ever EBITDA and guest satisfaction scores in its 37 years of operation.
“These fantastic results were delivered by our continued investment in our people, our environment and our facilities, and our constant innovation over the years.”
Center Parcs set on UK expansion
In its latest report Center Parcs vowed to find a new site in the southeast of England after it was forced to abandon its plans to build a holiday village near Gatwick due to environmental concerns last July.
The company had secured an option to acquire the woodland site in July 2021, with grand plans to invest between £350m and £400m in a 900-lodge venue.
However, following environmental and ecological surveys, Center Parcs concluded in February that the 553-acre site was “not a suitable location for a Center Parcs village”.
The decision came after CPRE Sussex slammed the proposal, calling it “inexcusable vandalism” of ancient woodland.
Brookfield, the Canadian firm that snapped up Center Parcs in 2015 for over £2.4 billion, planned to use the West Sussex site to boost growth and lure in potential buyers.
Despite the setback, the firm pushed for an estimated £4bn-plus auction of the group. However, in November last year, Brookfield called off the sale due to poor market conditions.