CARAVAN park group Parkdean Holidays plans to double its annual investment in improving facilities at its leisure parks in the coming year.

The group, based in Newcastle, which floated on the Alternative Investment Market in May 2002, owns 14 caravan parks in England, Wales and Scotland.

It plans to double its usual annual investment of £4.5m to £9m to cover the cost of improving facilities and adding new ones, such as an indoor swimming pool at its Welsh operation.

The announcement came as the group reported a 162 per cent rise in pre-tax profits, for the year to October 31, to £8.98m, compared with £3.42m in the previous year, on turnover up 22.7 per cent to £53.5m.

During the year, the group acquired two caravan parks in Cornwall, and has not ruled out further acquisitions in this year.

The group's chief executive, John Waterworth, said: "While we are not actively seeking further acquisitions this year, if anything comes along that we feel we should look at, then we will do so.

"There are currently 3,500 caravan parks in the country, with the biggest operator owning 41, so there is room for consolidation. Whether or not we are involved in such consolidation remains to be seen.

"In the last year, we have shown our ability to grow the business both organically and through acquisition.

"The New Year has begun well. Advance bookings for the 2004 season are 10.2 per cent ahead of last year, which provides a strong base for the coming year."

Many of the advance bookings have been handled by the group's telesales operation in Newcastle, which has increased from four to 18 staff in the past four years. In total, the group employs 890 staff, including 90 at its Tyneside headquarters.

Shareholders will receive a dividend of 5p per share, compared to 2p last year.