Park Resorts expects pensions boost to caravan sales

Park Resorts, Britain's biggest caravan park operator, is expecting a boost from the liberalisation of pensions as retirees use their nest eggs to buy mobile homes.

Sales of caravans are likely to benefit from the government's decision to scrap the compulsory purchase of annuities, according to the company, which reported a 28 per cent jump in earnings before interest, depreciation and amortisation to £57.9m in 2014.

Growing caravan sales could see a boost "when the nation gets a windfall like pension release", Park Resorts said.

Revenues were up 7.5 per cent to £230m in 2014, helped by the growing popularity of "staycations", with British holidaymakers opting for more frequent, long weekends at home over longer vacations abroad, said the holiday site operator.

Park Resorts' 49 sites in the UK also feature chalets, glamorous camping - or glamping - safari-style tents, and attract more than 1m visitors each year. The company rents out and sells caravans, as well as leasing space to thousands of caravan owners.

The upbeat figures mark a turnround for the business, which saw its profits fall to the low double digits during the recession, and almost collapsed under the weight of its debts. Electra Partners took control of the company in 2013 after a debt refinancing.

Since then, Park Resorts has acquired 11 sites and last year invested £20m in upgrading its estate, increasing its hire fleet and adding extra spaces to lease to caravan owners. A further £20m is being invested this year, the company said.

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