HOLIDAY park operator Parkdean Holidays forecast a satisfactory outcome to its financial year, despite reporting rising losses.

The Newcastle company, which has 15 parks in Scotland, South Wales and Cornwall, said the results were in line with expectations after the addition of two Cornish holiday parks in its loss-making winter months.

Advance holiday bookings were 5.2 per cent ahead of last year, with luxury accommodation, such as timber lodges, already booked.

Parkdean posted pre-tax losses of £5.6m for the six months to April 30, compared with losses of £3.8m last time.

John Waterworth, chief executive, said this was in line with expectations after the acquisition of the White Acres and Sea Acres holiday parks, which it bought in May last year.

He said he was pleased with the level of bookings, with timber lodges and new luxury caravans booked early.

The company, created four years ago, has benefited recently from changing holiday trends, with people going away for short breaks three or four times a year.

It has more than 7,200 pitches, including about 1,500 camping pitches, 180 timber lodges and chalets, 1,900 caravans for hire and 3,650 spaces for static caravans.

The group, which employs 1,200 staff, bought the Southerness Holiday Village in Dumfries and Galloway for £5.3m in March.

Group turnover for the half-year increased to £13.4m compared with £11.2m previously, while the interim dividend was raised by ten per cent to 2.2p.

Analysts forecast pre-tax profits of about £9.3m for the year to October 31, compared with £9m last time