The Brexit vote’s negative impact on the value of sterling combined with a downturn in travel to Turkey forced Scottish travel group Minoan to issue a profits warning today. 

The Glasgow-based company reported that the combined issues have had a “material effect” on the business, particularly the market for late holidays.

It said the EU referendum vote had negatively affected its travel business together with the weakness in sterling and a 40% decline in tourism to Turkey. 

“In the past few months the impact on gross profit has been running at approximately £100,000 per month,” Minoan said in a trading update this morning.

“Whilst this will have a significant effect on profitability in the current financial year, the board is encouraged by the trend in forward bookings for 2017 which show a return to a rate of growth ahead of current market indicators at 8%.”

The owner of Stewart Travel, John Semple Travel and King World Travel added: “The Brexit vote, its associated effects and the situation in Turkey, will have an as yet unclear but significant impact on the financial results for the current year. 

“All the indications are that this effect is temporary in nature and that the outlook for future growth is healthy.”

Meanwhile, the company is awaiting the outcome of a Greek court hearing on September 16 over a five-star resort development plan in Crete.

Minoan said it is hopeful that a positive decision will be announced quickly.