Butlin’s: Price changes fail to stop holiday resort chain entering the red
Holiday resort chain Butlin’s entered the red in the year after it was sold for £300m despite changing its pricing strategy, it has been revealed.
The company has posted a pre-tax loss of £24.4m for 2023, according to newly-filed accounts with Companies House.
The loss comes after the business, which runs sites in Bognor Regis, Minehead and Skegness, achieved a pre-tax profit of £61.2m in 2022.
Its operating loss narrowed from £22.9m to £10.9m in the year.
The new accounts also show its turnover rose from £290.4m to £292.7m over the 12 months.
Butlin’s did not issue a dividend for the year, having paid out £91.2m in 2022.
The results come after Butlin’s was sold for £300m towards the end of 2022 to the Harris family, who jointly established Bourne Leisure in 1964.
Butlin’s bets on big weekenders to boost finances
A statement signed off by the board said: “Demand for holidays within the UK has remained strong in the year which has seen the company perform well and return a strong trading performance.
“Turnover has increased by one per cent due to the continuation of strategies implemented from 2022, including adding additional family showtime breaks and big weekenders in the off-peak seasons when the sites would otherwise have been closed, increasing the number of guest weeks sold.
“This is alongside the introduction of a new pricing strategy which moved away from last minute discounting, increasing occupancy and net average tariff achieved.”
In September, Morning Wire reported that The group behind Haven holiday parks and Warner Leisure Hotels fell into the red after the sale of Butlin’s.
Bourne Leisure, which is owned by investment giant Blackstone, reported a pre-tax loss of £166.5m for 2023.
The loss comes after the group reported a pre-tax profit of £64.9m in 2022.
The Hertfordshire-headquartered group’s turnover declined in 2023 from £1.1bn to just over £1bn.
In separate accounts, it was revealed that Haven itself increased its turnover from £744.4m to £814.4m in 2023 while its pre-tax profit also rose from £108.5m to £115.1m.
Butlin’s CEO Jon Hendry Pickup said: “I am pleased to announce substantial progress against our five-year growth strategy – with significant investments in our accommodation, entertainment, and activity venues.
“Last year saw us invest more than £50m, with a focus on Skegness. Over the next few years, our proposition will further strengthen across the three resorts as we complete our £150m capital investment programme.
“Our increased turnover is testament to the expansion of our offering to include adults on big weekenders and conference-goers alongside families, and the reality that the ‘staycation’ is continuing to attract British holidaymakers long after the pandemic.
“Butlin’s has squarely positioned itself in the UK holiday market as the home of entertainment, delivering best-in-class entertainment and variety that no one else can match.
“We look forward to building on this strong foundation by continuing to invest in our entertainment and accommodation offerings and optimising the guest experience across all three of our resorts. We are very excited and ambitious about our future.”