Private equity company Lone Star Funds, which was a minority investment partner in Shearings and which already owned the operator’s hotels, has acquired the remaining management shareholding, which brings Shearings’ property and coach operating companies under common ownership.
A spokesperson declined to disclose the previous level of Lone Star’s shareholding or the level of new investment, but told TTG: “The business is very much focused on growth, which will be helped by having the property company and the operating company under common ownership.”
The changes see non-executive director Grant Hearn elevated to the role of chairman, replacing Phil White. Hearn is a former chairman and chief executive of Travelodge, and is already chairman of Lone Star’s Amaris Hospitality business. He has also held non-executive roles at Poundland and Scandic Hotels.
Shearings also confirmed the acquisition of Chesterfield-based Equalmatch, which operates the Travelstyle and UK Breakaways coach holiday brands. These two operations will complement Shearings’ National Holidays budget brand. Equalmatch, which has traded since 1992, carries more than 100,000 passengers a year.
The announcements came as Shearings’ revealed its 2015 results. In the calendar year, the group saw pre-tax profits of £5 million, compared with a loss of £0.9 million in 2014. Revenue increased by £1 million to £201 million. The improved result is attributed to margin improvement and cost reductions plus strong demand for UK holidays. Passenger numbers rose 2% to 1.1 million.
During 2015, the Wigan-based group spent £4.6 million on hotel refurbishment and ordered 46 new coaches to add to its 240-strong fleet.
Chief executive Denis Wormwell called 2015 “a landmark year” for the group, with a fourth successive year of financial improvements. “We’re in the ideal position to continue growing our presence and position as the leading escorted tours operator,” he said.
