Panmure retains faith in All Leisure despite profit slump

24th Feb 2014 12:08

Travel and leisure group All Leisure posted a hefty dive into the red for its full year but Panmure remains keen on the stock, noting the performance was not surprising given recent guidance from the company and that the outlook for trading looks promising.All Leisure reported full-year pre-tax losses of £13.6m versus a profit of £800,000 in 2012, reflecting losses on both derivative contracts and one-offs of mostly non-cash items. Panmure analyst Karl Burns, however, said the numbers were expected. He preferred to focus on current performance and outlook and noted that All Leisure's trading into 2014 has been "robust".With the group also planning to dispose of its loss-making cruise ship firm Voyages of Discovery, Burns believes the Cruise division will continue to improve its underlying performance. He is sticking to his 2014 forecasts, which imply All Leisure is trading on a 2014 forward multiple of 10.8, falling to just 4.2 in 2015. Panmure reiterates 'buy' on All Leisure with a price target of 60p. KP