2nd Apr 2014 10:31
LONDON (Alliance News) - Travel agency operator Minoan Group PLC Wednesday said it has successfully developed its international travel and leisure business, which drove its total transaction value up 37% in its last financial year, and led to the group narrowing its full-year losses.
Minoan shares were trading 10.79% higher Wednesday morning, at 16.48 pence per share.
For the year ended October 31, 2013, the travel company reported a pretax loss of GBP1.2 million, compared with a pretax loss of GBP1.3 million the prior year.
It said that total transaction value for the year was GBP51.2 million, up 37% from GBP37.4 million a year earlier, which it said was driven by a strong performance from its travel and leisure division.
Revenues for the year fell slightly to GBP9.2 million, down from GBP9.5 million the prior year.
The group said the trading performance of its travel and leisure division since year ended has continued to strengthen, with an increasing gross margin and gross profit up by 15% in the period to end of March.
"It is clear that sales are rising and discounts falling, which is the virtuous circle we aimed to achieve," the firm said in a statement.
Minoan said that its travel and leisure business continues to offer good opportunities for expansion, and hence will continue its buy-and-build strategy in seeking to acquire businesses that add value to its Stewart Travel brand.
During the year the group bought in the 20% stake in the travel and leisure division and arranged a new GBP5 million loan facility, which said will accelerate the division's acquisitions and growth.
Last month Minoan said that the Local Municipality of Sitia in Crete reaffirmed its support for its project on the Mediterranean island.
The travel company is planning a luxury holiday resort on a 26 square kilometre site at Cavo Sidero in Crete, comprising holiday villages, golf courses, a marina, and a conference centre.
"Given this backdrop we look forward to the coming year with every expectation of delivering further significant improvements both operationally and in terms of enhancing shareholder value," said Chairman Christopher Egleton in a statement.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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