Travel group Holidaybreak today posted wider interim headline pre-tax losses but hiked its dividend as its chief executive hailed a resilient performance amid tough trading conditions.

Cheshire-based Holidaybreak, which traditionally posts a loss at the half-year stage due to the seasonal nature of its education and camping operations, said it continues to tightly manage all of its businesses, which are well-placed to prosper when the economy recovers.

Holidaybreak, which has its headquarters at Hartford Manor, near Northwich, announced headline losses of £19.2m for the six months to March 31, from £17.7m in the same period last year.

Revenues were down from £150.2m to £139.6m. The losses included a £1m hit as a result of cancellations and other costs arising from disruption in the Middle East, North Africa and Asia.

Holidaybreak said it would pay an interim dividend of 3.35p, a rise of five per cent.

Shares in the company gained nearly 10 per cent, or 23p to 263p. The group's education division provides accommodation and tours for school pupils, further education students and youth groups across the UK and in Europe and is seen as the main driver for future growth.

Holidaybreak also operates an adventure holidays business and hotel breaks division in addition to education and camping.

It said sales for the year so far are four per cent down on 2010, reflecting later booking trends in camping, but added that the group remains on track to meet management expectations for the full year.

Chief executive Martin Davies said: "We have delivered a resilient performance in the first half despite the difficult trading environment. Our education business continues to perform well, evidencing the strong social, political and demographic drivers for growth.

"We continue to review the overall group portfolio as we look to strengthen the education share of the group. In the meantime, all of our businesses are being managed tightly, with a focus on cash generation, margin and cost control."

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