Underlying profitability fell by a quarter at Holiday Extras, the booking company for airport hotel and parking, according to its latest accounts.

The firm, at Newingreen, near Hythe, suffered a 25% fall in earnings before interest, taxes and other charges (EBITDA) to £9.2m in the year to the end of March 2016.

Bosses said the reduction came as it invested in technology and engineering staff plus research and development projects.

They blamed the Smiler rollercoaster accident at Alton Towers in June 2015 for the slow expansion of its short breaks business.

However, they were pleased with an 11% increase in overall turnover to £273.6m and said its German subsidiary continues to show steady growth. The company, which employs 930 people, made a £3.8m gift to its employee benefit trust.

Chief executive Matthew Pack, son of company founders Gerry and Carol, said: “We were pleased with the outcome and delivered targets set at the start of the year despite increasing economic uncertainty and terrorism.

“In order to fuel our ambitious plans for future growth, we invested in our technology team and engineering talent as well as new product teams and several R&D projects. We’re now on a mission to organise the world’s trips with intelligent software. Hence a lower EBITDA than the previous year.”

Established in 1983, the company makes bookings for more than seven million travellers each year, mainly in airport hotels and parking.

Operating profit fell 45% to £4m, giving the firm a pre-tax loss of £995,000 compared to a profit of £5.7m a year earlier.

Mr Pack said: “Our top line growth for last year was 11%.

“The loss reported in the profit and loss account is inclusive of various non-trading items, such as a contribution to the employee benefit trust and the restructuring of investments, whereby a change of accounting based on our shareholder is shown as a cost to the business.”

Holiday Extras Limited, its principal trading company in the UK travel and leisure market, increased turnover 11% to £260m, while operating profit was down 30% to £6.7m and pre-tax profit fell a quarter to £8.2m.