HOLIDAY village operator Center Parcs warned yesterday that higher energy bills would affect results in its next financial year, causing shares to plunge 11 per cent.

The group, which specialises in all-weather, glass-domed family holiday centres, said rises in gas and electricity tariffs increased like-for-like costs by 9.1 per cent in the first half.

It warned energy prices would rise by about 25 per cent in the year to April 2006 and that it would not be possible to pass these on to customers.

Center Parcs, which has four UK sites and hopes to open a fifth, said underlying pre-tax profits were £20.1m in the 24 weeks to October 7, against £19.5m last year.

It described the results as solid, given the challenging trading environment. New luxury accommodation was sold at peak prices during the summer, helping overcome a difficult first quarter.

But it warned of further increases in gas and electricity prices in the second half. It was unable to pass these on to customers, since brochures featuring costs for next year were published in October.

This, together with higher council tax costs, would affect 2006, although bookings for that year were in line with expectations.

Center Parcs UK has sites in Longleat Forest near Bath, Oasis Whinfell Forest in the Lake District, Sherwood Forest near Nottingham and Elveden Forest, Suffolk.

Last week, it revealed plans for a £160m complex on the Duke of Bedford's estate in Bedfordshire.