All Leisure Group today confirmed “disappointing” full-year pre-tax losses of £13.6 million against a profit of £800,000 in 2012.
This result reflects a loss on derivative contracts of £4.3 million and includes losses of £9.9 million in one-off, mostly non-cash items, the company said.
The group said its tour operating division continues to perform strongly, generating underlying operating profits of £4.1 million, but this figure was more than half the 2012 figure of £9.1 million when seasonal winter losses are taken into account.
The acquisition of the Page & Moy Travel Group contributed to an additional £10 million of tour operating revenue generated in the year to October 31.
The Discover Egypt arm remains profitable despite ongoing political issues in the country
The group said it aims to achieve growth by exploiting the increasing demand for destination-led holidays and by providing an increasing choice of other niche holiday products into the over-55 English speaking market.
All Leisure confirmed that that the loss-making ship Discovery will be disposed of at the end of this financial year, once a joint venture with Cruise and Maritime Voyages ends.
Chief executive Ian Smith said: “The disappointing headline results of the group, largely resulting from a series of exceptional events, should not detract from a year of great accomplishment for the group.
“Underlying trade improved significantly in the year with the tour operation acquisition continuing to perform strongly and the benefits of capacity reduction in the cruise business having an immediate impact. In keeping with the strategy of cruise capacity reduction the board has taken the decision that the loss-making mv Discovery will be disposed of at the end of this summer.”
Chairman Roger Allard said: “During the year we have established a new and very experienced management team to run the business.
“I believe that we are well positioned to address the challenges presented by the current economic climate and geo-political events.
“The acquisition of the Page & Moy Travel Group has provided significant cross selling opportunities to the respective customer bases and will continue to do so.
“The successful integration of this business into the Group has enabled us to realise significant synergies and efficiencies enabling us to create a much stronger business capable of delivering sustained growth.”
He added: “Given the group’s current forward visibility of trading, combined with the benefits of capacity management and the cost reduction measures that have been implemented, the directors have increased confidence for the future of the enlarged business.”