Unbelieveable value - growth 97% - PE 10

One for all you value lovers to consider. Parkdean is a holiday parks company with sites in the south west and Scotland. It was backed by 3i who gave money to Graham Wilson who built up an original chain of camp sites and sold them to Rank group.



On first look it looks too good to be true. You then spot the debt interest which was at between 5 and 6 million and the debt worries you but they have obviously paid off a chunk with the debt interest falling dramatically next year and although the companies market cap is around 30 million they have had land valuations of 67 million.

New to market, floated at the depths of the mark, undervalued. Oh and a healthy dividend next year.


September 2002 Trading Update


Parkdean Holidays plc, the Newcastle upon Tyne based operator of 12 UK holiday
parks in the West Country, South Wales and Scotland, today releases a trading
statement following the peak summer holiday season.


Throughout the summer we have consistently out-performed last year's holiday
sales with like-for-like holiday revenue in company owned accommodation up 14.5%
on 2001. In excess of 78% of those bookings have been made via our own direct
sales operation. All other areas of the business have traded in-line with
directors' expectations, and we have successfully integrated Ruda Holiday Park,
acquired in March this year.


We anticipate an operating profit for the year ending 31 October 2002 of not
less than #8.6m.


Parkdean Holidays plc had the financial structure of a venture capital backed
private company for the seven months prior to the company's flotation on 30 May
2002, which will be reflected in an interest charge for the year of around
#5.2m. Had the company enjoyed the benefits of its current structure for the
full year, its interest charge would have been reduced to approximately #2.9m.


At the time of our listing in May of this year, we stated to investors that our
long-term debt of #36m would be reduced to #35m by the end of the current
financial year. This remains the case, and in the absence of acquisitions this
will be reduced by a further #2m in the next financial year.



Dividends


The interim dividend of 1.6p per share announced on 24 June 2002 will be paid on
25 September 2002, and it is anticipated that a final dividend of 0.9p per
share, subject to shareholder approval, will be paid in March 2003.


In the absence of unforeseen circumstances, an interim dividend of not less than
2.0p (payable September 2003) and a final dividend of not less than 2.5p
(payable March 2004) will be paid for the year ending 31 October 2003.





Future Prospects



2002 represented the first year's trading for the company with a centralised
direct sales operation. Ruda Holiday Park's booking operation will be fully
integrated into this for holiday bookings for the 2003 season. Our 2003 holiday
brochure, featuring all twelve of the group's parks, will be launched next
month.



Our future earnings will benefit from the financial structure put in place at
flotation, with interest charges for the financial year ending 31 October 2003
being reduced significantly. In addition, the company benefits from a
significant asset base, and expects long-term debt to have reduced to below 50%
of property value by the end of the next financial year. We have also taken the
opportunity of hedging the interest rate on #20m of this debt until October
2007. The remaining debt is fixed for various periods ending between April 2003
and April 2005.



The Board continues to review acquisition opportunities that fit our strict
criteria in respect of location and earnings potential.




RESULTS WERE YESTERDAY