AllLeisure group, the listed UK based company that entails Swan Hellenic,Voyages ofDiscovery and Hebridean Island Cruises brands, reduced its net loss to £42million in the first six months of the year from £4.5 million in the same period in 2010. Revenues increased to £34.8 million from £32.8 million. Cash and unrestricted bank deposits decreased to £7.0 million on 30 June from £15.2million a year ago, while shareholders’ equity fell to £22.6 million from £25.6 million a year previously.
Commenting on the business outlook, Roger Allard, chairman said:” Despite the economic environment, remaining Summer 2011 capacity is currently 86% sold, including charters,(2010: 84%). However, these load factors have been achieved at lower yields and against a higher cost base.”
“Furthermore we envisage that fuel costs over the year will continue to rise and are now, in sterling terms, at their highest ever levels. Accordingly we believe fuel costs will be £1.3m higher than the previous financial year, and due to the continued weak UK economic environment it has not been possible to pass on this increase.”
The small Swan Hellenic river cruise programme for Summer 2011 has sold very well. ForWinter 2011/12 both mv Discovery and Minerva will be sailing to the Far-Eastbut it is also planned for mv Minerva to go into a dry dock.
“In addition to continued geo-political unrest, unprecedented natural disasters,the current global economic environment and continued low UK interest rates,the last six months has also seen no alleviation of the adverse cost environment that the Group is operating in – a situation primarily caused bythe weakness of sterling. Despite the difficult cost environment, it is encouraging that the strength of our brands and quality of our customer service have secured strong booking levels and for this reason I am confident that shareholders will see a significant improvement in returns once the adverse economic and exchange rate environment finally abates,” Allard said.
