All Leisure Group is poised to report significantly higher pre-tax profits than estimated in its financial results for 2008.
The cruise company, which owns the brands Voyages of Discovery, Discover Egypt and Swan Hellenic, says profits will be boosted to the tune of £4 million thanks to gains made through its currency hedging policy.
The company said its results, due to be announced by the end of this month and covering the 12 months to October 31, 2008, will show underlying pre-tax profits for the period to be broadly in line with expectations. They will exclude £1.4 million of fuel hedging losses for the 2008-2009 financial year.
In a statement, the company said: “Following the adoption of the International Financial Reporting Standards, and as the company does not apply hedge accounting, the fair value treatment of outstanding currency hedging contracts at October 31, 2008, will cause an uplift in pre-tax profits in the order of £4 million. As a result the group’s reported pre-tax profits will be significantly higher than current estimates.”
Last year the group reported a profit of £7.4 million pre-tax profit for the year ending October 31, 2007.
For the six months ended April 30, 2008, the group reported a 55% drop in pre-tax profits to £881,000, compared to £1.9 million for the six months to April 30, 2007, and increased revenues of £32.9 million from £22.9 million for the same six months the previous year.