Mv Voyager and restructure dent All Leisure results
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Problems with the mv Voyager cruise ship and a restructure have resulted in All Leisure Group announcing a pre-tax loss of GBP13.6 million this morning.
The group, which incorporates the Travelsphere, Just You and Discover Egypt brands as well as cruise lines Swan Hellenic, Voyages of Discovery and Hebridean Island Cruises, lost GBP1 million in revenue for cancelling three summer cruises on mv Voyager when the ship faced technical problems.
The ship will now be put up for sale at the end of the 2014 season, and mv Discovery will also leave its fleet at the end of the financial year when its venture with Cruise & Maritime Voyages (CMV) is completed.
Political issues in the Middle East and North Africa also contributed towards the group’s overall loss for the year ending 31 October 2013, which came after a profit of GBP800,000 in the 2011/12 season.
The group also spent GBP1.8m on its restructuring which included closing its offices in Burgess Hill and Southampton and relocating all its teams to Market Harborough.
Its cruise business saw an underlying operating loss of GBP1.9m, while the tour operating arm showed an underlying profit of GBP4.1m.
Roger Allard, chairman of All Leisure said the group has increased confidence for 2014 following the successful integration and cross-selling opportunities since its acquisition of Page & Moy.
“During the year we have established a new and very experienced management team to run the business. I believe that we are well positioned to address the challenges presented by the current economic climate and geo-political events,” he explained. “The acquisition of the Page & Moy Travel Group has provided significant cross selling opportunities to the respective customer bases and will continue to do so. The successful integration of this business into the group has enabled us to realise significant synergies and efficiencies enabling us to create a much stronger business capable of delivering sustained growth.”
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