Investment conglomerate Blackstone, owner of Bourne Leisure, faced financial challenges following the sale of Butlin’s. Recent accounts indicate a pre-tax loss.
The reported pre-tax loss amounted to £166.5 million for 2023, a stark contrast to the previous year’s profit figures, marking a substantial financial shift.
Bourne Leisure, owned by Blackstone, has reported a significant financial downturn for 2023. According to newly-filed accounts, the company experienced a pre-tax loss of £166.5 million, a notable decline from a profit of £64.9 million in the previous year. This decline follows the strategic decision to sell Butlin’s for £300 million to the Harris family, original co-founders of Bourne Leisure.
The sale of Butlin’s had a profound impact on Bourne Leisure’s operational scale. The company’s turnover fell slightly from £1.1 billion to just over £1 billion by the end of 2023. An additional outcome of this transaction was the reduction in average employee numbers from 16,107 to 12,765, highlighting the extensive changes resulting from the sale.
Despite the overall downturn, Haven holiday parks displayed robust performance amidst challenging market conditions. Revenue at Haven increased from £744.4 million to £814.4 million in 2023, alongside a rise in pre-tax profit from £108.5 million to £115.1 million. This is reflective of the company’s ability to adapt effectively to external pressures, including those related to inflation and operational costs.
The board of Bourne Leisure attributed part of this success to strategic initiatives aimed to enhance digital experiences, upgrade systems, and optimise revenue management capabilities.
During 2023, Bourne Leisure undertook several strategic initiatives to mitigate financial difficulties. The company focused on enhancing digital experiences for guests, owners, and teams. It migrated legacy systems to cloud solutions, improved revenue management capabilities, and upgraded its brand propositions. These efforts were aimed at better positioning the company amidst economic pressures.
The group’s commitment to cost reduction amidst rising inflation, particularly in utility, food, and labour costs, is central to its ongoing strategy.
In a statement, the board expressed optimism about the group’s future. The demand for domestic holidays in the UK provided a favourable environment for growth. The group expects EBITDA to rise further in 2024, indicating strong positioning to leverage market opportunities.
Blackstone’s acquisition activities, including the purchase of Village Hotels and a substantial property deal exceeding £400 million, highlight the group’s commitment to expanding its portfolio.
The financial reporting for Butlin’s is anticipated to be submitted by September 2024. This reflects the company’s compliance with accounting requirements post-sale. It remains to be seen how Butlin’s will perform financially under the Harris family ownership, which might influence the broader leisure market dynamics in the UK.
The influence of new ownership could have implications for competitive positioning and market share in the leisure sector.
The financial trajectory of Bourne Leisure following the Butlin’s sale underscores significant market pressures.
Going forward, strategic adaptations will be crucial for bourne leisure to regain financial stability.
