All Leisure group, the listed British niche cruise shipping company, has decided to put the 1972 built Discovery up for sale after booking a £6.7 million impairment charge against the 20,636 gross ton ship and forecasting a deep loss for 2013.
"Following the annual valuation of the Group’s fleet, the board agreed that market conditions made it necessary to recognise an impairment of approximately £6.7 million to the value of mv Discovery. This non cash item will also be included within separately disclosed items in the results for the twelve months to October 2013," the company said in a statement.
"The market value of mature cruise ships has reduced significantly in the last 12 months and it has been decided that the loss-making mv Discovery will be disposed of at the end of this summer. Following the planned disposal, the company’s underlying profits should benefit from the elimination of mv Discovery trading losses which are currently in the region of £4m per annum," All Leisure said.
This, together with certain other one off items, will lead to a reported unaudited IFRS loss before taxation of between £13 million and £14 million, an increase from 2012 profit before taxation of £0.8m million. Most of the anticipated 2013 losses will stem from non cash items.
Trading has continued as the board had anticipated, the company said. Discovery is operated for most part of the year by Cruise & Maritime Voyages, another British niche cruise shipping company. All Leisure operates cruises under the Swan Hellenic, Voyages of Discovery and Hebridean Island Cruises brand names. The company will publish its 2013 results on 24 February, it said.
