14th Jul 2016 09:44
LONDON (Alliance News) - Travel agency operator and holiday resort developer Minoan Group PLC on Thursday reported a wider pretax loss in the first half of its financial year, but revenue grew despite reduced demand for Turkey and it warned on the effects Brexit may have on the business.
Minoan said its pretax loss widened to GBP1.1 million in the six months ended April 30, from GBP759,000 in the same period the year before, as it booked higher finance costs and operating expenses.
Revenue, however, grew to GBP33.1 million from GBP28.7 million, boosted by organic growth achieved against a background of reduced demand in Turkey as a result of security concerns following on from the string of terrorist attacks which have occurred there over the past year.
Minoan is in the process of developing a holiday resort in Crete for which it is currently awaiting planning consent. In the meantime, it is undertaking a number of discussions with potential partners and financing institutions, it said.
"The Brexit vote, together with its effect on sterling, may have significant impacts on both our businesses. In travel it is likely to put up the cost of travel and holidays, which may affect the level of bookings going forward although increased prices may also result in higher commission. The effect in Greece is that the underlying value of the project, which is based on euros/dollars, means that a lower sterling exchange rate will lead to an increase in the equivalent sterling value," Chairman Christopher Egleton said in a statement.
"In conclusion, whilst there are momentous events over which we have no control, we have never been closer to fulfilling our substantial potential," he added.
Shares in Minoan were trading down 1.7% at 6.64 pence on Thursday morning.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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