Trading Update
5 February 2013
MINOAN GROUP PLC
("Minoan" or the "Group")
TRADING UPDATE
Good performance from the travel business and positive developments on the Crete project
Minoan Group Plc, the AIM-listed travel and leisure company, is pleased to provide an update on its trading activity, with a good performance from the travel business and positive developments on the Crete project.
The audited figures for the year ended 31 October 2012 are expected to be published in March. Travel posted a robust performance with revenues in excess of £37 million and operating profits of circa. £400,000 for the year. This is after costs of integrating the businesses acquired as a result of the Group's buy-and-build strategy and building the technical platform to handle further expansion. The good performance from the travel business helped to reduce losses at the Group level, which are expected to be lower than in the previous period despite the continuing costs of developing the Crete project, central costs and the share based payments charge.
As previously indicated, cash flows within the travel industry as a whole are under pressure. In particular, the Group's cash balances have been affected by less advantageous terms from major suppliers, the requirements of merchant card acquiring arrangements and the application of the Civil Aviation Authority's new ATOL regulations (Flight Plus) but, notwithstanding, remain healthy.
Trading since the financial year end has been very positive with commission up in excess of 20% across the travel business as a whole compared with the same period last year. The full year figures for 2013 are expected to show a substantial improvement compared to those for 2012.
The first 50 computerised travel agency kiosks, part of an initial pilot phase, have now been installed across largely market town based sub post offices, following the exclusive agreement with the National Federation of Sub Postmasters announced late last year, to install such kiosks across the UK's network of more than 9,000 sub post offices. Further information will be included in the Chairman's Statement, which will form part of the audited accounts.
The announcement last September that Minoan's planning application for its Crete Project has been granted Fast Track status by the Greek Government was officially registered in the Government Gazette in December, which finally confirms it in law.
Currently we are completing the necessary Environmental Assessment to secure what would be the equivalent in the UK of outline planning permission for the development. Minoan's experienced team are finalising this assessment, which we hope to submit in the near future.
Over the past year the Greek Government has been undertaking a comprehensive review and reform of its tourism investment regime and its planning procedures, with the aim of liberalising the overall framework to actively encourage such investment in Greece. A number of new planning and tourism laws are currently being debated, which we believe should have a beneficial effect on the Crete project, if implemented.
The project has benefited from the measures already passed in law with the award of Fast Track status and on the planning process it has gained from the greater clarity and certainty offered to developers by the new regime.
Christopher Egleton, Chairman of Minoan, said:
"The Group has had an eventful year with the rapidly-expanding travel business performing well and progress made on the Crete project. Our travel buy-and-build strategy is paying off, with the recent acquisitions now integrated and the installation of the first 50 sub post office-based travel kiosks. All this has helped to deliver a good set of trading figures from the travel business.
We are also pleased to see the Crete project's Fast Track status officially confirmed in law and we are due to submit our Environmental Assessment shortly."
For further information please visit www.minoangroup.com or contact:
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Minoan Group Plc |
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Christopher Egleton |
christopher.egleton@minoangroup.com |
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Duncan Wilson |
0141 226 2930 |
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Bill Cole |
020 8253 4305 |
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WH Ireland Limited |
020 7220 1666 |
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Adrian Hadden/Nick Field |
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Throgmorton Street Capital |
020 7071 0808 |
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Forbes Cutler |
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Morgan Rossiter |
020 7629 9101 |
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Richard Morgan Evans/James Rossiter |
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This information is provided by RNS
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