All Leisure results to be hit by one-off items

13th Feb 2014 11:00

AIM-listed travel group All Leisure took a hit on Thursday after revealing its results for the year would be affected by one-off items resulting from operational and non-operational adverse factors, as well as the closure of its head office. As such, the loss for the year was set to be between £13m and £14m, compared to a pre-tax profit of £0.8m the previous year. The group incurred costs of around £1.5m relating to the closure of its head office in the first half, and has since taken two further restructuring decisions that cost it £0.6m. Additionally, it recognised an impairment charge of around £6.7m to the value of mvDiscovery, which will be disposed of at the end of the summer. The group expects this will add to its losses by around £4m annually. Altogether, the impact of the non-operational factors was expected to result in a group charge of approximately £9.9m. The group said trading had been as expected, although "a number of unforeseen adverse issues" created operational headwinds towards the very end of the financial year, when three Travelsphere escorted tours to the US were cancelled and as a result of issues with the Discover Egypt brand due to the political unrest in that country. The impact on the underlying results was expected to total around £0.5m. Overall, underlying trading profit for the year was expected to be broadly similar to the £0.9m delivered the previous year. Since the year-end, trading had been "robust" and profitable, the group said. The share price slumped 11.48% to 39.39p by 11:26 on Thursday. NR