All Leisure announces pre-tax profit

Niche cruise operator All Leisure Group has announced  that it expects to make a pre-tax profit of around £2.6m for the year ended October 31, which it said was in line with market expectations.

However, it admitted winter trading was "extremely challenging" against a backdrop of natural disasters, geo-political events, challenging market conditions, reduced discretionary customer spending, persistent low interest rates, increased oil prices, a weak pound, increased air tax and inflation.

The company has been hit by a fall in sales for Egypt, which had been selling well up till January 2010. As a result of the drop in demand, it will operate only a limited programme to Egypt this winter. It said its load factors on committed aviation capacity are running at over 80% to the end of April.

In its trading update, it said: "As in the past, we have no financial commitment on the ground and have not contracted any aviation capacity for summer 2012.

"Bearing in mind all the upheavals in Egypt, we are satisfied with current trading and are doing considerably better than our competitors."

All Leisure also announced that it is taking one leased ship, Swan Hellenic's Minerva, out of service for a €14m major refit and upgrade, the majority of which is being paid for by the vessel's owner in return for an eight-year extension to the lease to 2021. It will recommence operations in March.

The improvements should benefit its yield for the year ending 31 October 2013, it said.

Hebridean Princess has just finished "a satisfactory" summer season, said the Group, and is going into its annual dry dock until next spring.

Discovery is operating in the Middle East, Far East and Australia this winter and  revenues and occupancy levels are expected to be lower than last year.

Summer 2012 ocean cruising capacity has increased by 15% and sales are ahead of last yea, with load factors and revenues slightly ahead, said All Leisure.

"Foreign exchange and the price of fuel continue to be one of several headwinds we have to contend with.  Most of our currency for the financial year 11/12 has been hedged ahead of current spot levels and at or above budgeted level," added the statement.

"Fuel has eased off slightly from its recent highs and we have covered approximately one-third of our fuel requirement for this year, similar to year ended 31 October 2011.

"As already stated, we are currently encountering many challenges as a result of geo-political events, difficult market conditions, inflation and the situation in the Eurozone.  Nevertheless, we continue to be focused on providing the best service possible to our customers and value to shareholders alike."

By Linsey McNeill