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MyTravel earmarks ‘disposals’ to help turnaround

MYTRAVEL has revealed it is considering further “small
disposals” after slashing group losses by £418.3 million.

Group chief executive Peter McHugh claimed its interim
results showed the group was making “clear progress” in its bid to turn around
the group’s fortunes.

Losses for the six months to March 31 have reduced to
£199.6 million from £617.9 million for the same period last year.

The winter operating loss for the UK before
exceptional items and goodwill has dropped to £164.7 million from last year’s
£242.9 million, an improvement of £78.2 million.

McHugh does not envisage big changes to the current
structure of the core UK business and ruled out any “major” shop closures but
hinted at

the potential sale of “non-essential” assets.

“We have no disposals planned but it’s possible there
will be some small disposals of assets that do not fit into the core business –
non-essential things we may or may not sell based on negotiations that take
place.”

McHugh said winter losses were still too high and the
group was working at reducing its fixed cost base in its UK charter and
distribution businesses.

The group has already slimmed down considerably over
recent years by selling off UK operators such as coach specialist Leger
Holidays and camping business Eurosites as well as overseas businesses in
Germany and the US.

Earlier this year it shed its cruise division Sun
Cruises and by the end of the year its aircraft fleet will be reduced to 44,
from its original 56. Guaranteed accommodation for future seasons is also being
cut.

The group is now focused on
its core businesses in the UK, northern Europe – which comprises Scandinavia
and Holland – and the US.

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