15th Oct 2014 11:39
LONDON (Alliance News) - All Leisure Group PLC Wednesday said it has successfully sold its 43 year old, loss-making cruise ship, mv Discovery, to Liberty Resources Inc of Nassau for a net consideration of USD5 million.
The cruise and tour operator specialising in the over-55s market said earlier this year it had written down the value of the Discovery cruise ship to approximately GBP9.9 million and planned to dispose of it at the end of the summer.
"Although the consideration received is less than the current book value of the vessel, the board's decision to sell mv Discovery to Liberty also took into account the absence of the future liabilities and other uncertainties associated with many other bids," the company said in its statement Wednesday.
The company said that several higher indicative offers were made but had weaker cash flow profiles, which would have affected the prospect of staged payments over several years.
"It was the board's considered view that is was therefore in shareholders' best interests to accept the lower cash offer in full and final settlement," it said.
The company said it will provide a further update on current trading for the financial year ending October 31 at the end of November.
"This will include an assessment of the financial impact of the cruises to Ukraine and Crimea," it said.
All Leisure also said that it has commenced the search for a new group finance director to replace Chris Gadsby.
The company's stock was down 7.9% Wednesday early afternoon at 29.00 pence.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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