31st Oct 2019 11:50
(Alliance News) - Luxury travel firm Intosol Holdings PLC said Thursday it cut its loss markedly despite softer half-year revenue, as the firm focused on higher-margin business and sought to cut costs.
For the six months ended July, pretax loss narrowed to EUR68,289 from EUR879,058 a year prior. This was despite revenue falling 8.3% to EUR3.3 million from EUR3.6 million the year before.
Profit performance was helped by an improving operating leverage, with gross profit widening to EUR936,170 from EUR680,798 the year before. Administrative costs also fell, to EUR1.2 million from EUR1.6 million the year prior.
"Since the beginning of the financial year, we have been delivering our strategy of restructuring and growing the SOUL Private Collection of owned and managed boutique hotels in South Africa, increasing margins and building our international client base," Executive Chair Rainer Spekowius said.
"Simultaneously, a significant cost reduction took place in both operational companies in Germany and South Africa, which brought the operational side of the business to greater efficiency in management structures and better cost control," Spekowius added.
"Our growth strategy is underpinned by strong market fundamentals for high-end tourism, with research showing, that luxury travel is growing twice as fast as the overall market," Spekowius continued. "With a portfolio of high-end, boutique hotels, we are well positioned to take advantage of this."
Shares in Intosol were untraded at 25.00 pence in London on Thursday.
By Ahren Lester; [email protected]
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