The management team at Minoan Group could be forgiven for taking some time off in the sun after seeing a 20 per cent boost in transaction spend, to almost £40 million, and a jump in gross profit.
Throw in the dismissal of the final appeal in its five-year legal battle to win approval to build a luxury resort in Crete, and the last six months have been hugely significant.
The increased spend in its travel and leisure business – which includes Stewart Travel, John Semple Travel and King World travel – shows that Minoan’s strategy to differentiate itself from online travel giants, and major tour operators, by focusing on the likes of golf breaks and cruises, in addition to corporate travel, is working.
Having previously cited the Brexit vote and declining tourism to Turkey for hitting profits by £100,000 per month, the growth in gross profit to £4m is all the more impressive.
Of course, while the company has grown this division, both organically and through a hungry appetite for acquisitions both organically (Morningside Travel was the latest to be consumed as part of the group’s strategy of consolidating smaller travel businesses), a Greek drama has been playing in the wings.
And what a drama it has been. Minoan first applied for permits in 1991, and was given “fast track status” by the Greek Government back in September 2012. Valued at €250m, it only overcame the final appeal hurdle in June.
Some investors, no doubt used to positive updates that describe how Minoan is set to “crystallise the significant value” of the Itanos Gaia project, being followed by deflating accounts of yet another regulatory hold-up, may have doubted whether a shovel would ever come into contact with Cretan soil.
There may remain many turns on the road ahead, but as Minoan now seeks out investment partners for the project, it is no surprise yesterday’s interim results were more upbeat than a Mediterranean resort in the first week of summer season.
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