MyTravel
warns of £15 million loss in this year’s profits
AN
accounting change is likely to wipe £15 million from MyTravel’s results this
year.
The
group’s auditors said it is no longer appropriate to show retail revenue at the
time of booking – instead it should be shown at departure.
Chief
executive Tim Byrne said he was disappointed changes had to be made.
He
said 81% of all summer 2003 holidays have been sold by in-house distribution,
with bookings for next summer at the best level for five years.
“Until
very recently we anticipated that the Group’s results would be broadly in line
with expectations – albeit at the lower end of the range.” he said.
“However,
our auditors have asked us to change our retail revenue recognition
policy.”
MyTravel’s
shares dropped 25% following the announcement.