AN East Lothian-based entrepreneur who aims to make a second fortune in the leisure business plans to invest £1 million this year in developing the portfolio of caravan parks that he has amassed.

While the outlook for the economy is unclear, Graham Hodgson is prepared to make further hefty investment in the Verdant Leisure business that he runs amid signs that demand for caravan holidays is increasing.

"One area we found quite challenging last year was holiday hire, but bookings are well, well up on the same time last year," said Mr Hodgson,

He added: "Talking to other providers, the feedback I am getting is that bookings are running 15% to 20% ahead of last year."

Mr Hodgson said it was unclear whether the upturn is being driven by an improvement in consumer sentiment or by holidaymakers deciding to stay-cation in the UK in the hope of saving money.

However, Mr Hodgson is confident that Verdant will maintain the progress it made during the year to February.

"We achieved all the targets we set ourselves. We are delighted by the financial performance," said Mr Hodgson.

Sales of caravans have held up well.

Renowned for selling South Lakeland Caravan Parks for £125m in 2007, 18 months after leading a £95m management buyout of the business, Mr Hodgson formed Verdant to develop a business focused on south Scotland and northern England.

Backed by RJD Equity Partners, Verdant has bought three parks in Scotland, including Viewfield Manor in Ayrshire and Pease Bay in East Lothian, and one in England.

Mr Hodgson said Verdant would consider further acquisitions at the right price.