All Leisure group, the UK based boutique cruise brand operator, has reported a deepening of loss for the first half of its financial year on the same period in 2012 on a number of extraordinary charges. Excluding these, the loss narrowed slightly, the company said in a statement.
Net loss for six months to 30 April deepened to £13.4 million from £11.2 million year on. However, the latest figure includes restructuring costs related to acquisition of Page & Moy, the tour operator, and relocation of group head office to new premises.
“Neither of these costs were included in the loss of £11.2m for the six months ended 30 April 2012. On a like-for-like basis the group result has improved to £9.7m loss, reflecting a year-on-year improvement in the Cruise Division,’ the company said.
“This is further improved by net £1.1m if the group's results are assessed prior to the year on year impact of gains and losses on certain derivative contracts which would result in an £8.6m loss,” All Leisure continued.
The improvement in cruise performance is due in no small part to the success of the strategy to de-risk the business. Highlights of the period under review include:
· Improved year-on-year cruise performance on a like-for-like basis;
· The successful integration of the Tour Operating Division which continues to perform strongly, based on the strength of forward bookings which will convert to revenue and profit in the second half of the year;
· Expensed £1.3m of a planned £1.5m of integration costs with significant synergistic savings being achieved through the reduction of senior management headcount;
· Cruise occupancy levels were 76% (2012: 74%);
· Undertook a substantial, planned dry dock of mv Discovery; and
· The group has hedged over 95% (2012: 95%) of its foreign currency requirements as well as over 30% (2012: 30%) of its projected fuel requirement.
Although the first half of 2013 has proved challenging due to a continued tough trading environment, the successful integration of the Tour Operating Division (previously Page & Moy) and subsequent restructuring program have placed the Group in a stronger position to maximise the benefits of the increase in year-on-year bookings that we are seeing for 2014. We have currently sold 95.6% of forecast escorted tour revenue and 97.8% of forecast cruise revenue for FY13.
Roger Allard, Executive Chairman of All Leisure, said: "It is regrettable that the recent mechanical problems with mv Voyager, tough trading conditions and unfavourable political events in Egypt will impact performance for the second half of 2013. However, despite this, I am extremely pleased to report that we are enjoying the benefits of introducing the Tour Operating Division into the Group, complementing our existing products and creating encouraging cross-selling opportunities.”
“Furthermore, I am excited for the future of the Group following the recent successful integration of Page & Moy and am confident of achieving in the region of £1.5m in full year overhead savings in 2014 following the closure of the Burgess Hill office and rationalisation of senior management within the Group.”
