Hoseasons owner looks to cash in

The management team at Hoseasons, the self-catering UK holiday specialist based in Lowestoft, is considering a buyout after it emerged that its existing private equity owner is looking to cash in on the company's recent success.

Richard Carrick, chief executive of Hoseasons, confirmed last night that an MBO was one of the options on the table following news that Hg Capital, which bought the business for £40m in 2003, wants to sell the business.

Hoseasons has benefited from the growth in domestic breaks at the expense of foreign holidays, and its accounts for the financial period just ended are expected to show another year of growth.

Although the company's strong position might make it less attractive to rival private equity groups, Mr Carrick said there was room at Hoseasons for further growth.

“Expansion is possible and we are keen to grow the business,” he said.

“A management buyout is one of the options we are considering, and we are giving serious thought to it.

“What we are keen to do is ensure we align ourselves with shareholders who are inclined to invest in the business. We have a platform for growth that is very scalable, and we want to make sure that we have shareholders who will buy into that vision.”

Hoseasons, which employs more than 200 people in Lowestoft, announced plans earlier this year to expand its call centre in the town to meet increased demand from consumers and travel agents.

The so-called “staycation” market - which refers to people holidaying in the UK rather than travelling abroad - has been boosted by the economic downturn and the fall in the value of sterling, although Mr Carrick was quick to point out that Hoseasons had been growing before the recession began.

In its last published accounts, covering the 12 months to the end of October 2008, Hoseasons recorded turnover of £15.6m, up from £13.7m a year earlier. Pre-tax profits were up by nearly 50pc to £3.13m.

The company's 2008-09 financial year ended last week and those figures are yet to be published, but Mr Carrick said they would show further growth.

It is thought that Hg Capital hopes to fetch up to £50m for the business.

Hoseasons began life in 1944 and remained in family hands until an MBO in 1999. Mr Carrick took over as chief executive in 2003 when Hg Capital bought the business.