All Leisure Group, the UK based parent of Swan Hellenic, Voyages of Discovery and Hebridean Island Cruises, has staged a strong recovery and returned to profit in the latest financial year that ended 31 October 2011. Group net profit amounted to £5.7 million in 2011, according to preliminary figures, compared to a loss of £2.1 million a year earlier. Operating profit rose to £3.4 million from £3.1 million
“We have taken the strategic decision to manage our capacity and plan significant dry docks, refits, maintenance and upgrades during 2012. In addition, we will continue to develop new routes to market, for example via GDS and on-line to broaden customers' options and product offerings,” Chairman Roger Allard said in a statement.
Minerva’s €14 million upgrade, currently in progress, is mainly being paid for by the vessel’s owner. “In return for these improvements, we have extended the lease for a further 8 years to November 2021 at the same lease rate. We have also agreed to assist the owner's financing of these improvements by paying an additional deposit of up to €2 million; this deposit will be recovered by way of non-payment of lease rentals at the end of the lease term.”
“These improvements should benefit our yield and bottom line for the year ending October 2013 and beyond. We are delighted to say that we are seeing some benefits being delivered for this summer, with per diem fares 11% higher than those for Summer 2011. As a result of mv Minerva being out of service for the majority of the winter season, understandably winter losses will be higher than those for 2010/11, although we are investing for, and should reap the benefits over the next 10 years.”
“mv Discovery is operating in the Middle and Far East and Australia this Winter and, due to the challenging trading conditions, we expect revenues and occupancy to be lower than last year. However, per diem fares are 4% up on those achieved at the same point last year for Summer 2011.”
“Sales of Hebridean Princess are slower than last year, although per diems are being maintained. However, the inaugural river cruise programme is already over 75% sold," Allard said.
