Minoan reports wider H1 pre-tax loss, cautious about Brexit

Minoan, a resort developer and travel agency, reported a wider half year pre-tax loss as its revenue grew and said it was cautious about Brexit.

For the six months ended 30 April, the company’s pre-tax loss widened to £1.1m from £759,000 the same period last year due to operating expenses and higher finance costs.

Gross profit increased 19% to £3.5m due to organic growth, despite low demand in Turkey because of security concerns.

Earnings before interest, tax, depreciation and amortisation increased by 12% to £332,000.

Minoan said it invested in 'soft' infrastructure and in June it opened a hi-tech service centre in Ayr, Scotland to facilitate the ongoing growth of the businesses, which account for about two thirds of its total transaction value.

The AIM listed company has a project developing a holiday resort in Crete, Greece. The company is awaiting planning approval from the Greek Council of State and should hear from them by 16 September.

The company is also in discussions with potential partners about the Crete project.

Chairman Christopher Egleton said: “The Brexit vote, together with its effect on sterling, may have significant impacts on both our businesses. In travel it is likely to put up the cost of travel and holidays, which may affect the level of bookings going forward although increased prices may also result in higher commission.

“The effect in Greece is that the underlying value of the project, which is based on euros/dollars, means that a lower sterling exchange rate will lead to an increase in the equivalent sterling value. In conclusion, whilst there are momentous events over which we have no control, we have never been closer to fulfilling our substantial potential."

Shares in Minoan were up 0.59% to 6.79p at 1653 BST.