The iconic British holiday camp operator Butlin's has staged a remarkable financial recovery, posting a pre-tax profit of £28.3m for 2024, just a year after recording staggering losses. This dramatic turnaround comes despite a slight dip in overall revenue and against a challenging economic backdrop for UK consumers.
From Deep Red to Black: A Financial Reversal
Newly filed accounts at Companies House reveal the scale of the resurgence. The company, which runs resorts in Bognor Regis, Minehead, and Skegness, had fallen to a pre-tax loss of £74.2m in 2023. The return to profitability was significantly bolstered by a major revaluation of its resort properties, adding tens of millions of pounds to its balance sheet.
Operational performance also improved sharply. Butlin's operating profit surged to £41.8m for 2024, a stark contrast to the £60.7m operating loss it reported for 2022. However, total turnover saw a modest decline, falling from £292.7m to £287.5m last year.
Leadership Commentary and Industry Challenges
Butlin's Chief Executive, Jon Hendry Pickup, described 2024 as a "good year" for the business. He highlighted ongoing investments exceeding £50m over two years to upgrade facilities and train its 4,000-strong team. "Against a challenging macroeconomic backdrop characterised by high interest rates and dwindling consumer confidence, we produced a robust performance," he stated.
He also pointed to strong underlying demand for UK holidays, a sentiment echoed in the company's accounts. The report noted that "demand for holidays in the UK remained strong despite consumers facing challenging economic conditions across the year."
Rival's Struggles and Political Crossfire
The positive news for Butlin's stands in sharp relief to the continued difficulties faced by its main rival, Haven. Reports indicate that Bourne Leisure, the group behind Haven which is owned by Blackstone, recorded a pre-tax loss of nearly £170m for 2024, following a £166.5m loss in 2023, despite a rise in turnover.
The financial results were filed shortly after CEO Hendry Pickup launched a strong critique of government policy. He slammed Chancellor Rachel Reeves for introducing what he termed a "tax on holidays" in the recent Budget—a levy on overnight stays that mayors can implement.
"Hospitality businesses like Butlin’s remain caught in the crossfire of the Chancellor’s tax and spend ideology," Hendry Pickup argued. "Last year we had the tax on jobs... Now we have a tax on holidays. These decisions do nothing to drive growth or jobs for working people." The tax has received support from several regional mayors, including London's Sadiq Khan, but faced opposition from others like Teesside's Ben Houchen.
Butlin's, which was sold to the Harris family for £300m in late 2022, now looks ahead to its 90th anniversary in 2026, aiming to continue its investment programme to attract future generations of holidaymakers.
