Center Parcs profits fall by a third

Leisure Village operator Center Parcs saw profit in the first six months of the year fall by a third, after it sold its education business to concentrate on developing its existing sites.

The company said the £12m cash proceeds from the sale of 3D Education and Adventure business to PGL Travel had been reinvested in the business.

Center Parcs, which has four sites, is currently upgrading them by building more villas and improving its on-site restaurants.

It also plans to go ahead with a fifth site in Woburn, Bedfordshire, although planning permission will not be granted until at least March 2006.

Pre-tax profit dropped from £19.4m in the 24 weeks ended 6 October 2004 to £12.6m, while turnover increased slightly to £113.5m (2004: £113.2m) thanks to a "typically strong summer season".

After excluding the impact of the 3D sale and other exceptional items, turnover was up 5.7% and operating profit increased 5.3% to £14.9m (2004: £14.2m).

By Amanda Smith

Get your copy of Caterer and Hotelkeeper every week - click here to subscribe and save 25%.