Allbury Travel Group chief executive Eamonn Ferrin and chairman Michael East have stepped down after the company announced a profit for the first time in several years.
Both directors were brought in to reverse the company’s fortunes over the past two years. They officially resigned on June 25, but will continue working in a management consultancy capacity to oversee trading this summer, and the transition to a new management team, to be appointed immediately after negotiations.
The group has been dogged by rumours that some agents had taken the group off sale. There were also fears its future was in jeopardy after the collapse of the XL Leisure Group in September 2008, because it relied on the company’s flights.
Over the past 18 months the company, which owns tour operating brands Libra Holidays, Argo Holidays, Jetlife, Sky Holidays and Priceright Holidays, has attracted new private investors and undergone a financial restructure, which has included capacity cuts.
Ferrin said there had been “significant progress” in the group’s profitability over the last two years. The group would not release any figures, and its latest results are not available from Companies House.
Ferrin said: “For the year ending October 2008, the business achieved a significant turnaround in underlying operating profitability. It delivered its objectives by signficantly reducing operating costs and balancing charter capacity to meet profitable demand.”
He said the group had achieved a trading profit for winter 2008/09 for the first time in “several years”.
In April, the group was taken off the traditional ATOL bonding system – retained for certain companies such as new businesses or those causing concern to the Civil Aviation Authority – and put on the new £1 ATOL Protection Contribution system.
East added: “The business has been recapitalised, has moved to the [ATOL] levy system, achieved a profit in winter 2008/09 and is on track to achieve company targets for the fiscal year 2008/09.”