Trading Update

RNS Number : 4519V

Minoan Group PLC

13 December 2013

 



13 December 2013

MINOAN GROUP PLC

(the "Group" or "Minoan" or the "Company")

TRADING UPDATE

Travel business continues its strong performance and significant progress on the Crete project

Minoan Group Plc is pleased to provide a trading update, with a robust performance from the reorganised travel business and positive developments on its project in Crete (the "Project").

Audited figures for the year ended 31 October 2013 will be published in March 2014, with travel gross revenues of around £45 million and operating profits of the continuing travel businesses in excess of £600,000, as expected.

As referred to in the Chairman's Statement accompanying the Group's interim results, the change in the CAA's approach has led to a major change in Minoan's business model in terms of the settlement system for its travel business. This, taken together with the rebranding, reorganisation and rationalisation of the travel branch network, has resulted in one-off costs of in excess of £150,000 and costs arising from discontinued branch and Canada operations of £104,000.

It is anticipated that the Group's consolidated results for the year ended 31 October 2013 will be in line with market expectations.

Minoan expects the strong performance of the reorganised and rebranded travel business to improve significantly. This will be reflected in the operating profits in the current financial year.

The confirmation in the Greek Government Gazette that the Project is to be assessed under the new Article 24 of the amended Fast Track Laws, as announced 21 November 2013, has resulted in a number of changes to the Strategic Environmental Assessment ("SEA"). These changes are virtually complete and we now expect to submit the revised SEA before the end of the year.

Christopher Egleton, Chairman of Minoan, said:

"Profits from the continuing operations of the travel business reflect a robust performance and take into account the recent deliberate slowing of the Group's acquisition drive to ensure new travel agencies were properly integrated. We expect a further significant improvement in the performance of the travel business going forward, given the completion of the rationalisation of the business and the arrangement of the loan facility as announced on 17 October 2013, which allows the acquisition programme to accelerate.

With the travel business performing well and the submission of the SEA now imminent, the Group can start to implement the next phase of its strategy to capitalise on the positive developments for its business in both Greece and in the UK."

For further information visit www.minoangroup.com or contact:

Minoan Group Plc
Christopher Egleton	[e-mail]
Duncan Wilson	0141 226 2930
Bill Cole	020 8253 4305
WH Ireland Limited	020 7220 1666
Adrian Hadden/Nick Field
Throgmorton Street Capital	020 7071 0808
Forbes Cutler
Morgan Rossiter	020 3195 3240
Richard Morgan Evans/James Rossiter

 

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