All Leisure Group reports widened winter losses
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UK tour operator and cruise company All Leisure Group has reported losses of GBP13.4 million for its latest six-month results as it integrated Page & Moy into its business.
The group’s loss included GBP1.3 million costs in restructuring as it closed its Burgess Hill office, as well as GBP2.4m seasonal losses in the tour operating arm.
Gains were made in its cruise division, although All Leisure revealed earlier this month that the cancellation of several cruises onboard mv Voyager cost the company GBP1.6m. Additional costs will be made for specialist tour operator Discover Egypt, which has been set back by the protests in the country and had its Nile cruise programme cancelled.
The group’s performance, which covered the six months ending 30 April 2013, improved on a like-for-like basis to a GBP9.7 million loss predominantly down to growth the cruise arm.
In its interim statement All Leisure said it expects Page & Moy’s integration to convert to revenue and profit in the second half of the year ending in October 2013. The company has so far sold 95.6% of its tour operator target and 97.8% of its cruise revenue.
Roger Allard, executive chairman of All Leisure said he hoped its difficulties would be balanced by money saved from moving to one office and restructuring its senior team.
“It is regrettable that the recent mechanical problems with mv Voyager, tough trading conditions and unfavourable political events in Egypt will impact performance for the second half of 2013. However, despite this, I am extremely pleased to report that we are enjoying the benefits of introducing the tour operating division into the group, complementing our existing products and creating encouraging cross-selling opportunities,” he explained.
Allard added: “Furthermore, I am excited for the future of the group following the recent successful integration of Page & Moy and am confident of achieving in the region of GBP1.5m in full year overhead savings in 2014 following the closure of the Burgess Hill office and rationalisation of senior management within the group.
We believe that we have laid solid foundations for future growth which can be enjoyed once the wider economic environment and trading conditions improve.”
Aside from Discover Egypt the company’s brands have all seen increases in bookings for the 2013/14 financial year, with Voyages of Discovery, Swan Hellenic and Hebridean sales up 30%, 21% and 19% respectively. Travelsphere’s sales are up 23% and Just You’s has increased 29%.
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