Minoan Group Plc Acquires Martin Singer Travel
Minoan Group Plc is pleased to announce that Stewart Travel Limited ("Stewart"), the Group's travel division, has agreed to acquire the trade and assets of Martin Singer Travel ("MST"), a successful, long established, profitable independent business within 8 miles of Aberdeen Airport. The city of Aberdeen has a fast expanding corporate travel market and Stewart is already engaged in an active marketing drive in the area.
MST had an annual turnover of £2.23 million and profit before tax of £131,000 as stated in its unaudited accounts for the year ended 31 October 2013.
MST is being acquired using the Group's existing resources for an initial cash consideration of £250,000 and a deferred cash consideration based on the first year's profitability post-acquisition, subject to a maximum of £500,000. The acquisition of MST is expected to be earnings enhancing in the current financial year.
In accordance with the terms of the agreement, and subject to confirmatory due diligence, the acquisition is to be completed by 31 May 2014. A further announcement will be made in due course.
This latest acquisition is an illustration of the success of the buy-and-build strategy that the Group's travel division is executing. So far 8 travel agencies and businesses have been acquired and integrated into the division, which, as announced on 12 February 2014, will report gross revenues of around £50 million and an operating profit for the continuing travel businesses in excess of £600,000 when the Group releases its annual results later this month.
Duncan Wilson, Minoan Managing Director commented:
"We are delighted to have a presence on the ground in Aberdeen to build on the Group's initial success in possibly the most vibrant business travel market in the UK".