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Sykes Cottages achieves record results

sykes cottages

Livingbridge-backed Sykes Cottages, the UK’s largest independent operator of UK holiday rental properties, has reported record growth in sales and profits in its latest financial year. 

The business, which manages over 10,000 properties across holiday hotspots such as the Lake District, Devon and Cornwall and the Yorkshire Dales, said the rise of the so-called staycation and record numbers of foreign visitors* were accelerating demand.

In the year ending September 2016 - the first full year of trading since our growth capital investment – Sykes reports that the business generated sales of £27.3m**, an increase of 24% on the same period last year. 

Bookings in the financial year to date were up 23%, with the business on track to serve over 1m holidaymakers, up from 815,000 last year.

Sykes commented that its profits (EBITDA***) rose 33% to £6.8m.

Earlier this year, Sykes acquired West Country specialist operator, Cornish Cottages and Devonshire Cottages. The business said it would continue to make selective acquisitions to strengthen its presence and portfolio in strategically important regions. 

Sykes also referenced its £1.2m investment in its technology platform last year to support its growth strategy, which includes taking 2.5m customers on holiday annually by 2020.  

Graham Donoghue, CEO at Sykes Cottages, said: 

“Our commitment to being the best choice for owners, offering the best experience to customers and operating the best brand and platform in the market is helping us capitalise on some highly positive dynamics in the self-catering sector.

“Together with further planned investment in the year ahead, we’re confident we can deliver our vision and ambition for the business as the number one provider of UK holidays.”

 

This article was originally published by Insider Media, 10 July 2017. 

 

*Official figures from the Office of National Statistics (ONS) in June said a record 37.6 million overseas visitors spent a total of £22.5 billion in the UK during 2016 (+4% and +2% respectively).

**Sales and profits relate to Sykes Cottages Holdings Limited for the period ending 30 September 2016. Year on year comparisons are based on adjusted prior year figures to account for a shortened, eight-month statutory accounting period in FY14/15 following a change to the group’s corporate structure.

***The company reports profitability as EBITDA (Earnings before Interest, Tax, Depreciation and Amortisation) as the most accurate measure of underlying profitability, excluding for example items such as financing costs of private equity investment, amortisation on the goodwill, intangibles as part of the acquisition and any costs classified as exceptional due to being one-off in nature.

 

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