Minoan Group PLC Greece and Trading Update (3759J)
September 09 2016 - 2:00AM
UK Regulatory
TIDMMIN
RNS Number : 3759J
Minoan Group PLC
09 September 2016
9 September 2016
MINOAN GROUP PLC
("Minoan" or the "Group")
Greece and Trading Update
Minoan today announces an update in its Travel Business and its
Greek project.
In summary, the Group's Travel Business has been negatively
affected by the outcome of the Brexit vote, weakness in Sterling
and the decline of tourism in Turkey. Accordingly, profits for the
current year will not meet market expectations. In respect of our
Greek project, the Court hearing of the appeals against the issue
of the Presidential Decree remains scheduled for 16 September
2016.
Travel
We reported in the Group's Interim Statement that we were very
pleased that our Travel Business showed a growth in gross profit of
circa 19% in the first half of the year, but that we were concerned
as to the impact of the Brexit vote. In overall terms, the Brexit
vote, including the decline of Sterling together with the ongoing
situation in Turkey where tourism is down by 40%, has had a
material effect, in particular in our market for late holidays (due
to the reduced availability of less expensive product). In the past
few months the impact on gross profit has been running at
approximately GBP100,000 per month.
Whilst this will have a significant effect on profitability in
the current financial year, the Board is encouraged by the trend in
forward bookings for 2017 which show a return to a rate of growth
ahead of current market indicators at 8%.
Greece
As reported in the Group's Interim Statement, the Court hearing
of the appeals against the issue of the Presidential Decree ("PD")
is scheduled for 16 September 2016. This is the first date in the
new judicial year following the Court's Summer Recess and our
advisors have confirmed that there is no reason to expect a change
to this timetable. The Court process is that, following the
hearing, the Judges meet to determine the merits, or otherwise, of
the arguments put forward.
The Board is encouraged by the fact that the Court has already
reviewed the PD on two occasions when it was judged to be lawfully
proposed by the unanimous opinion of the Plenum of the Court and,
accordingly, is hopeful that a positive decision will be announced
quickly.
Conclusion
The Brexit vote, its associated effects and the situation in
Turkey will have an as yet unclear but significant impact on the
financial results for the current year. All the indications are
that this effect is temporary in nature and that the outlook for
future growth is healthy.
The Board is looking forward to the hoped for early decision by
the Court and better trading figures as indicated by current
bookings.
For further information please visit www.minoangroup.com or
contact:
Minoan Group Plc
Christopher Egleton christopher.egleton@minoangroup.com
Duncan Wilson 0141 226 2930
Bill Cole 020 8253 4305
WH Ireland Limited 020 7220 1666
Adrian Hadden/Nick Prowting
Throgmorton Street Capital 020 7071 0808
Forbes Cutler
Morgan Rossiter 020 3195 3240
Richard Morgan Evans/James
Rossiter
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulation (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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