30th Jul 2015 09:19
LONDON (Alliance News) - All Leisure Group PLC Thursday reported a narrowed pretax loss in the first half of its financial year, but revenue was hit by difficult trading which it said will result in its full-year performance being below expectations.
Shares in All Leisure were trading down 18% at 10.25 pence Thursday morning.
The tour and cruise operator said that its pretax loss in the half year to April 30 narrowed to GBP12 million from the GBP15.4 million loss it made in the same period the prior year.
Revenue, however, fell to GBP45.9 million from GBP49.1 million, as Cruise sales declined by GBP2.1 million and Escorted Tours sales decreased by GBP1.1 million. All Leisure said that the Escorted Tours division was hit by the civil war in Syria leading to lower demand for tours to neighbouring Turkey, while the ongoing conflict in Ukraine hit the Cruise division's cruises on the Black Sea.
All Leisure added that it has sold 89% of budgeted Escorted Tour revenue and 92% of budgeted cruise revenue for departures up to October 31.
"The cruise industry is becoming increasingly competitive as new vessels are launched and the capacity within the industry grows. Consequently the industry is seeing increased levels of price competition which is expected to negatively affect the profitability of the group in the second half of the year and beyond," Chairman Roger Allard said in a statement.
"With the company continuing to experience these difficult trading conditions the board anticipates that full year performance will be below expectations and now expects the business to make a small loss for the full year," he added.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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