Sales at Minoan rocket 2000% to hit £12.6m

Deputy Business Editor

Tuesday 31 July 2012

HALF year sales at Minoan Group soared almost 2000% to £12.6 million with the chief executive planning further rapid growth after putting in place the infrastructure for a £300m business.

VISION: Duncan Wilson believes Minoan has an infrastructure in Glasgow for a business with a turnover of up to £300m. Picture: Colin Templeton

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GREIG CAMERON DEPUTY BUSINESS EDITOR

The travel and leisure company saw sales and commissions soar from the £610,000 reported in the period to March 31, 2011, following an acquisition spree to snap up several Scottish travel agencies.

Losses increased from £498,000 to £780,000 in the six months to April 30 this year mainly due to costs relating to acquisitions plus investment on a luxury resort the AIM-listed business is developing in the north-east of Greece.

Chief executive Duncan Wilson told The Herald that 150 staff had been brought into the company's Glasgow headquarters in the past year and systems had been installed to allow rapid growth.An announcement on a UK wide distribution deal is expected in the next few weeks while further acquisitions are also being considered.Mr Wilson said: "It is our intention to build a fairly significant travel business based in Glasgow. Clearly we are some way down that track."We have built an infrastructure in Glasgow capable of administering a business which could turnover between £200m and £300m. As we sit our turnover will be about £50m so we are still sub-optimal, but we intend to take significant steps to clearing that sub-optimal position over the next few weeks." The travel and leisure division, which includes Scottish firms such as King World Travel and John Semple Travel, was responsible for all revenue and made a pre-tax profit of £10,000 to the end of April 2012.That was in spite of weak consumer confidence and the figures coming from the traditionally quieter winter period.According to Mr Wilson, holiday prices had declined but Minoan had done well from cruise sales with several companies offering cut-price deals following the Costa Concordia sinking off the coast of Italy in January.He said: "After the Concordia disaster sales fell but then to stimulate interest the cruise lines came out with a whole bunch of special offers and the market has picked up."The luxury resorts division made a £375,000 loss while the corporate development arm, which includes acquisition costs, was £415,000 in the red.In March the group signalled its plans for a resort in the Sitia region of Crete, where it owns 26 square kilometres metres of land along a stretch of coastline, were on a fast track for approval.But the political upheaval in Greece has delayed the bureaucratic processes involved and a decision is now expected in the next few weeks.Mr Wilson said: "The new Government, which are in now, are working very hard. We have had many meetings over the last few weeks with members of the Government and those engaged in the fast track process and we are looking to receive some fairly positive news on that in the next two or three weeks." Minoan has agreed an investment and joint venture package with Candia Investment Corporation for the first phase of the development.Candia is paying £2m for an initial 10% stake but has the option of increasing its holding further in exchange for more cash.The two companies are also forming a special purpose vehicle to investigate buying or operating leisure assets in Greece.Minoan's share price slid almost 8% closing the day down 0.62 pence at 7.25p.

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Sales at Minoan rocket 2000% to hit £12.6m

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