Newmarket secures investment from CEO to boost recovery
James ChappleNewmarket Holidays chief Niel Alobaidi has pumped some of his own cash into the business to boost its recovery, becoming the escorting touring specialist’s first new shareholder for nearly 40 years.
The operator’s board on Wednesday (9 March) confirmed the investment from Alobaidi followed a refinancing effort combining additional shareholder investment and bank support.
Alobaidi becomes Newmarket’s fist new shareholder since 1984 when founders Toni Frei and Jeremy Griffin welcomed Simon Hibbs into the fold; it was Hibbs who handed over the reins to Alobaidi when he joined in September 2019 from Emirates Holidays.
Newmarket said Alobaidi’s investment would ensure the business has the capital needed to manage its recovery from the Cvid crisis, and support its transition back to growth. The board stressed they were of the belief the investment would "provide confidence and security to all stakeholders in the business".
Founder-owner Hibbs said: “We are delighted to be joined by Niel as a shareholder. He has demonstrated true leadership since joining the business in September 2019 and has been successfully managing the company through the Covid pandemic.
"In return, he has shown his confidence in the potential of Newmarket Holidays, which comes at a time of recovery and growth. This investment will provide every confidence to our customers, employees and supporting stakeholders alike."
Alobaidi said: "I am grateful to the three founder-owners of Newmarket Holidays for their trust in me over the past two-and-a-half years. There is a strong connection with all the members of the board, which has developed over a critical two years of steering the business through the pandemic.
"Despite the many challenges faced by the travel industry during the past two years, we have emerged in a strong position, with minimal leveraging of the business, thanks to the unwavering dedication of our outstanding team, and I am excited about the opportunities we now have going forward.”
Hibbs added: "This is an important step as we transition to growth and the future of Newmarket Holidays. Niel’s arrival in the shareholder group shows the confidence we have in the robust position of the organisation and our ambitious plans for the future."
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Place of registration: England and Wales.
Company number 08723341.
Registered address: 6th Floor, 2 London Wall Place, London EC2Y 5AU
