All Leisure Group is to further integrate its cruise and tour operating businesses following the takeover of Page & Moy Travel Group in May.
All Leisure expects to make a “modest” pre-tax profit for the year ending October 31, the company said in a trading update.
The group’s focus continues to be on maximising the synergies created with the Page & Moy acquisition.
“This should in part counteract the negative impacts from unprecedented natural disasters and geo‐political events, double dip recession, reduced discretionary customer spending, persistent low interest rates, increased oil prices and weak sterling, all of which are further exacerbated by increased Air Passenger Duty,” the company said.
An update on the integration process and cost benefits is due to be delivered when full year results for 2011/12 are released by February.
“Whilst the industry in general and our business in particular will continue to encounter many challenges over the next 12 months, we will be focusing on opportunities to integrate our tour operating and cruise businesses even more closely thereby partly mitigating the significant trading headwinds,” All Leisure said.
“The strategic importance of the acquisition of PMTG cannot be underestimated. Whilst restructuring costs will be incurred in the short term, the board is confident that the synergy benefits that it has identified will deliver a strong contribution to the bottom line in future years.”
The company revealed that its joint venture with Cruise and Maritime Voyages with the ship Discovery and a charter of new to brand vessel Voyager for 79 days next summer to Allways of Belgium will result in overall capacity at Voyages of Discovery being reduced by 20% in the next financial year.
The introduction of river cruises by Hebridean Island Cruises this summer was “extremely successful” and further expansion is planned. Cruise ship Hebridean Princess will enter annual dry dock shortly before recommencing operations in March 2013.
Swan Hellenic ship Minerva underwent a major refit and upgrade last winter which added 32 balconies, increased the size of some cabins, upgraded bathrooms and introduced of an observation lounge. The vessel re-entered service on schedule in March and will spend the winter in the Far East.
Both the Pay & Moy Travelsphere and Just You brands have performed “exceptionally well” and have made a better than expected contribution to the bottom line, the trading update said.
Discover Egypt continues to face “challenging times” but has contributed profit.