MINOAN Group has said it is “closer than ever” to fulfilling its potential through a luxury development on Crete, as its travel agency business raised transaction value to £33 million for the six months to June 30.

The company also revealed it had entered discussions for an acquisition that would push sales in its travel and leisure division past its £100m target.

The Glasgow-headquartered firm posted its interim results as it awaits a hearing on an appeal against its long-running bid to build the five-star-plus Itanos Gaia resort on the Greek island.

Having been granted permission in March to build the resort on a 6,000-acre site in the Cavo Sidero peninsula, by way of presidential decree, the Greek Council of State – which issued the decree – received an objection.

However, managing director Duncan Wilson said he fully expected this objection to be dismissed. “We just have to wait and see, but all our advisors, all our contacts at the Greek Government are saying that it should be fine, because everything has already been through the council of state,” he said.

“It’s unfortunately the case that anyone in Greece can appeal for free,” added Mr Wilson.

The appeal hearing will be heard by the Council on September 16, its first day back after summer recess, which could indicate that the Council is keen to quickly dismiss the appeal in order to illustrate to the troika that agreed a bailout package for Greece (The European Central Bank, European Commission and the International Monetary Fund), that the country is open for business.

Mr Wilson added: “It demonstrates to the troika that the [government] are getting on with all of the things they’ve agreed to.”

Mr Wilson said that the company anticipated making an announcement within a “very short period of time” immediately after the appeal has been heard.

In its results announcement, Minoan chairman Christopher Egleton wrote: “We are encouraged by the shortest possible delay in the hearing of the appeals against the issuance of the presidential decree granting outline planning consent for the group’s project in Crete and the fact that the decree has already been judged to be legal by this court on two occasions. In summary, I believe we have never been closer to fulfilling our substantial potential.”

Minoan widened interim losses to £1.1 million, largely because of operational and finance costs relating to its luxury resorts division. Its only operational division – travel and leisure – posted revenue of £3.54m on transactions of £33.1m, keeping it in the black, with £57,000 in pre-tax profits.

The company noted this was achieved in spite of reduced demand in Turkey as a result of security concerns.

Mr Egleton warned that Brexit could hamper forward bookings in its travel and leisure division, though a weaker sterling could potentially benefit Crete project.

“The Brexit vote, together with its effect on sterling, may have significant impacts on both our businesses,” he said.

“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.”

He added that the company was continuing to progress with the project and was in discussions with potential partners and financial institutions.

“We are very pleased that we have made progress across both our key operating divisions over the past six months,” said Mr Egleton.

Back at home, in June the company opened a new service centre in Ayr to facilitate the ongoing growth of its web businesses, which now account for roughly two thirds of total transaction value.