Minoan Group PLC Greece and Trading Update (3759J)

TIDMMIN

RNS Number : 3759J

Minoan Group PLC

09 September 2016

9 September 2016

MINOAN GROUP PLC

("Minoan" or the "Group")

Greece and Trading Update

Minoan today announces an update in its Travel Business and its Greek project.

In summary, the Group's Travel Business has been negatively affected by the outcome of the Brexit vote, weakness in Sterling and the decline of tourism in Turkey. Accordingly, profits for the current year will not meet market expectations. In respect of our Greek project, the Court hearing of the appeals against the issue of the Presidential Decree remains scheduled for 16 September 2016.

Travel

We reported in the Group's Interim Statement that we were very pleased that our Travel Business showed a growth in gross profit of circa 19% in the first half of the year, but that we were concerned as to the impact of the Brexit vote. In overall terms, the Brexit vote, including the decline of Sterling together with the ongoing situation in Turkey where tourism is down by 40%, has had a material effect, in particular in our market for late holidays (due to the reduced availability of less expensive product). In the past few months the impact on gross profit has been running at approximately GBP100,000 per month.

Whilst this will have a significant effect on profitability in the current financial year, the Board is encouraged by the trend in forward bookings for 2017 which show a return to a rate of growth ahead of current market indicators at 8%.

Greece

As reported in the Group's Interim Statement, the Court hearing of the appeals against the issue of the Presidential Decree ("PD") is scheduled for 16 September 2016. This is the first date in the new judicial year following the Court's Summer Recess and our advisors have confirmed that there is no reason to expect a change to this timetable. The Court process is that, following the hearing, the Judges meet to determine the merits, or otherwise, of the arguments put forward.

The Board is encouraged by the fact that the Court has already reviewed the PD on two occasions when it was judged to be lawfully proposed by the unanimous opinion of the Plenum of the Court and, accordingly, is hopeful that a positive decision will be announced quickly.

Conclusion

The Brexit vote, its associated effects and the situation in Turkey will have an as yet unclear but significant impact on the financial results for the current year. All the indications are that this effect is temporary in nature and that the outlook for future growth is healthy.

The Board is looking forward to the hoped for early decision by the Court and better trading figures as indicated by current bookings.

For further information please visit www.minoangroup.com or contact:

 
 Minoan Group Plc 
 Christopher Egleton            [e-mail] 
 Duncan Wilson                  0141 226 2930 
 Bill Cole                      020 8253 4305 
 
 WH Ireland Limited             020 7220 1666 
 Adrian Hadden/Nick Prowting 
 
 Throgmorton Street Capital     020 7071 0808 
 Forbes Cutler 
 
 Morgan Rossiter                020 3195 3240 
 Richard Morgan Evans/James 
  Rossiter 
 

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

This information is provided by RNS

The company news service from the London Stock Exchange

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September 09, 2016 02:00 ET (06:00 GMT)