14th Jul 2015 12:47
LONDON (Alliance News) - Minoan Group PLC Tuesday said results for its current financial year will no longer meet market expectations, hit by difficulties in Greece and the attacks on tourists in Tunisia.
In a statement, Minoan said results for the year ending October 31 are expected to be in line with the previous year.
"As can be imagined, the long running situation in Greece and, tragically, recent events in Tunisia have also had an impact. In addition, there has been a dispute with our back office services provider relating to cash settlements, which has now been resolved," Minoan said.
Minoan Group, a travel and leisure company, has been struck by a delay to the procedures required for the signature of a presidential decree for its project in Crete, a result of the Greek government's focus on resolving its position with its creditors.
With the Greek Parliament due to vote on whether to ratify an agreement with the EU that would keep the indebted country in the eurozone, Prime Minister Alexis Tsipras must answer to members of his own left-wing Syriza party and other parts of the coalition that feel he he has given in to European demands for austerity.
"In the hope that the agreement between Greece and the EU/Members of the Eurozone will now be ratified by the Greek Parliament, the group has been advised that normal Government procedures will resume shortly thereafter," Minoan said.
Minoan said it thinks that market expectations for the next financial year, to the end of October 2016, remain valid.
The company said it's pursuing numerous opportunities, though it didn't go into details, adding that it will issue an update when they are concluded.
"The board is confident that the group's travel division will bear significant fruits in the coming year," Minoan said.
In the meantime, Minoan said, the underlying performance of the company's travel division has improved, with gross sales up by 15% and commissions up by 17% in the current financial year.
"This is despite difficulties in Aberdeen relating to the oil price, which have had a detrimental effect on the performance of our corporate travel division. This will be ameliorated going forward by the recent acquisition of other non-oil related corporate customers," Minoan said.
Shares in Minoan were down 7.0% at 8.25 pence on Tuesday afternoon.
By Samuel Agini; [email protected]; @samuelagini
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