Caravan park group Parkdean Holidays said it was cashing in on a sharp rise in the number of people taking short breaks in the UK.

Chairman Graham Wilson said market demand was currently as buoyant "as I can remember in my 20 years in the business".

Pre-tax profits surged 97 per cent to £3.4 million in the 12 months to October 31, helped by the acquisition of the Ruda park near Barnstaple. But Mr Wilson said holidaymakers now had higher levels of disposable income and were taking more UK breaks alongside traditional foreign trips.

He said the advent of the minimum wage also meant more people were beginning to go away for a holiday for the first time. Turnover climbed to £43.7 million from £29.6 million in the recent financial year and advance bookings for this year are ten per cent up on a year ago.

Parkdean floated on the Alternative investment Market in May and runs 12 holiday parks across England, Scotland and Wales. Its success is in stark contrast to the fortunes of the major package tour operators, who have suffered a torrid 12 months.

The fall-out from September 11 has hit the major players hard and left the former Airtours group MyTravel fighting for survival.

A Consumers Association report added holidaymakers were beginning to opt for the customer service of independent firms.

Mr Wilson said: "If you want to keep your customer you not only have to control selling your holiday but the execution as well."

Parkdean now plans to continue upgrading its caravan fleet with new homes with double-glazing and full central heating. Mr Wilson said the investment should help Parkdean grab more market share and added he was keen to add more sites to the portfolio.

Parkdean's flotation came nine years after Mr Wilson took its predecessor Parkdean Leisure to market in 1993.

Leisure conglomerate Vardon bought the business two years later and the chairman took over the holiday parks side.