Caravan retailer buffeted by debt By Michael Kavanagh Financial Times Published: September 13 2008 03:00 Caravan and motor home enthusiasts are a hardy breed. But wet weather and economic gloom will have tested the humour of investors in Discover Leisure, the market-leading caravan retailer, in recent months. Shares in the Aim-listed company have lost more than 90 per cent in the past year, closing down at 2p yesterday. Then, in a profit warning this week, the company said it was facing reduced demand and higher interest charges. Debt levels have grown to £22m compared with £11m a year ago - largely as a result of increased stock resulting from acquisitions, its push into motorhome sales and the launch of a rental service. Company broker Panmure Gordon has cut its profit forecast for the year from £2m to £500,000. But any stock or debt provisions could push post-exceptional figures into the red. Existing stockholders may have seen the worst and want to hold. For others, Discover is one strictly for brave enthusiasts.