MYTRAVEL is to cut capacity next year by up to 25%,
invest in its Going Places network and extend its specialist
businesses portfolio.
Announcing full-year results, group chief executive Peter McHugh
said capacity would continue to be cut “to bring it in line with
demand for brochured holidays”.
Meanwhile, McHugh hinted at a move into dynamic packaging,
achieving “greater flexibility” by aligning product “more closely
to changing market requirements” and increasing online sales.
Investment in Going Places will aim to improve the shopping
experience and update store interiors. McHugh refused to reveal how
much would be spent but said there were no plans to reduce the size
of the 650-shop network.
At the same time MyTravel plans to increase online sales and has
invested £2 million this year on upgrading websites.
The specialist portfolio will be expanded, following the launch
of cruise retail business the Cruise Store. McHugh refused to
reveal details but said “we are looking to do more in that
area”.
The group posted an operating profit of £8.3 million for
the 12 months to the end of September, but an operating loss of
£17.5 million for the 13 months to October 31 2004 – the
new end of its financial year.
Losses before tax for the 13 months to October 31 2004 have been
to reduced to £190.3 million from £910.9 million in
2003.
McHugh said the UK performance is improving “but there is still
much work to be done”. He predicted the operator would make
“industry-standard margins of 3.5%” in 2007.
- The High Court will rule on Monday whether MyTravel’s
£800 million debt-for-equity swap deal can go ahead.
Shareholders and creditors have backed the deal but bondholders,
who receive 2% of the stock in return for their £216 million
bonds, hope to block the move.