UK: Kuoni Travel Loses £4.6m Following Journeys of Distinction Acquisition
Kuoni Travel has reported a loss after tax of £4.6 million for 2013, compared with its £10.6m loss in 2012, due to the costly acquisition of a luxury holiday brand which failed to take off.
Accounts filed with Companies House for the year ended 31 December 2013 showed turnover rose slightly from £287m to £293m, an improvement of 2 per cent.
But the Surrey-based group failed to turn a profit due to the ongoing reduction in value of the goodwill from its purchase of Journeys of Distinction, which it acquired in 2006 for a reported eight-figure sum.
"Operating loss increased to include the write off of the remaining goodwill on Journeys of Distinction reflecting the continued decline in this business," read a report by the directors. "Amortisation in respect of goodwill amounted to £6.5m (2012: £6.1m)."
Net assets at the end of the year stood at £551k, compared to £6.1m in 2012.