Libra adjusts its 2004 profits lower

After reporting CYP 4.15 mln in net profits when the preliminary 2004 results were released, Libra Holidays Group (LHG) has adjusted its 2004 results to the tune of CYP 1.57 mln and now says the audited results show net profits of CYP 2.5 mln compared to CYP 14.4 mln losses reported in 2003.

The adjustment in the accounts referred to deferred taxation, which following the audit has been reduced by CYP 1.07 mln and higher finance costs to the tune of CYP 493.000, arising from currency adjustments.

The turnaround in the results was helped in part by the sale of its stake in Excel Airways.

Turnover fell 45% following the sale of Excel Airways Group (EAG) and a 47% drop in packaged holiday sales, which fell to 300.000 packages from 434.000 in 2003. Total turnover for the financial year ending October 31, 2004 amounted to CYP 116.86 mln from CYP 306.41 mln in 2003.

Expenses also declined by 30% due to cost cutting and following the EAG sale, but include CYP 800.000 in extraordinary costs related to staff redundancies and termination expenses.

Depreciation also fell 30% as a result of the EAG sale. During the year, Libra sold 73.5% of its stake in Excel, realising a net benefit of CYP 8.2 mln. Following the sale, total goodwill on the books fell by CYP 35 mln, allowing for a reduction in the goodwill charge by CYP 1.7 mln.

Excluding the EAG benefits, Libra reported that from its core operations of selling tour packages and hotels, it had a loss of CYP 4 mln for 2004 compared to losses of CYP 22 mln in 2003.