Center Parcs back in the black as pre-tax profits hit £70m

Alys Key
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Center Parcs lodges have an occupancy rate of 97.3 per cent (Source: Center Parcs)

Holiday operator Center Parcs swung back into the black in the year to 20 April, recording £70.5m in pre-tax profit.

Last year one-off costs associated with the business's sale to Canadian company Brookfield Asset Management, as well as refinancing the group's debt, resulted in a pre-tax loss of £6m.

Read more: Canary Wharf owner buys Center Parcs

But in the first full year since the sale, high occupancy rates of 97.3 per cent and solid performance across the board have helped Center Parcs to turn a profit.

Revenue for the period was £440.3m, up from £420.2m in 2016, while underlying profit rose from £198.2m to £213m.

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Center Parcs also achieved improved the average daily rent, which is calculated by dividing total accommodation income by the number of nights sold. The average was £178.60 per day during the period, compared to £167.31 last year.

The group is in the process of building its first site in Ireland. The £203m complex in County Longford will open in 2019 and is expected to create 1,750 jobs. This adds to the existing portfolio of five woodland-based resorts in England.

Read more: Center Parcs to launch its first village outside of the UK

The directors noted in their report that there is no direct competitor to the Center Parcs proposition, but alluded to winning over wary customers as consumer confidence slides, saying: "Center Parcs will need to continue to deliver innovation and communicate high quality and standards, reliability and good value for money for the family audience.

"As consumer expectations continue to rise Center Parcs will need to be in a position to exceed these expectations."

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