Brookfield’s Centre Parcs Can’t Find Staff, But Still Makes Record Profit
Center Parcs, the holiday village company owned by Brookfield, has revealed a record half-year profit, in spite of the fact it is having to limit capacity because it can’t find enough staff to operate its parks at full occupancy.
Center Parcs said it produced earnings before interest, tax, depreciation and amortisation of £119M in the 24 weeks to 7 October. That compares to £118M during the same period in 2019, before the coronavirus pandemic.
Its occupancy in this period was 79%, compared to 98% in 2019. It had to reduce occupancy because of trouble finding staff, a problem that it hopes will abate and allow it to increase occupancy, it said in its results announcement.
“Recognising well publicised labour supply issues across the UK more generally, the group has continued to apply self-imposed capacity restrictions in the short term to ensure that it may continue to focus on delivering the highest standards of guest experience,” Centre Paris said in the release. “Capacity is expected to be increased progressively over the second half of the year.”
It said it is 74% booked for the 2022 financial year, compared to 81% at the same point pre-Covid, and this again is a result of capacity limits due to staff shortages.
Center Parcs’ financials indicate that it produced record results in spite of reduced occupancy by trimming costs, increasing prices and improving its operating margin, which grew from 50% in 2019 to 52% in 2021. Revenue for the period was £228M, down from £235M in the same period in 2019.
Brookfield made £160M available to the company during the lockdowns forced by the pandemic to help it meet its liquidity needs, but Centre Parts said it has not needed to draw on this during the current financial year.
The company operates five villages in the UK and one in Ireland, and has identified a site for a sixth, in West Sussex, to the south of London. It said it is in the preliminary stages of seeking planning for a 900-lodge site, and if it receives planning, the site would cost around £350M to £400M to build.
