MYTRAVEL
claims trading in the first half of its financial year is in line to return to
profit in 2005 but has warned of a significant balance sheet re-structure.
But
the group admitted the summer 2004 market continued to be challenging, with
evidence customers are booking later.
Its
annual general meeting statement added margins have been “under some
pressure” but said the group had reduced capacity and costs to maintain an
“acceptable share of the market”.
For
winter 2003/04, charter bookings are consistent with capacity and results for
the first half of its year are forecast to be in line with expectations with a
significantly improved year-on-year operating performance.
Meanwhile,
chief executive Peter McHugh said options were already being considered for a
financial restructure, which could entail a “very significant dilution of
the interests of shareholders”.
McHugh
said the restructure was underway because the company “cannot allow too
much time to pass” before renewing or replacing bank refinancing
agreements on its debts, currently in place until 2006.
The
group’s net liabilities at September 30, 2003, were £672.6 million. “This
situation severely restricts the group’s room for manoeuvre,” he added.