Half year loss down 86% at Discover Leisure
DISCOVER Leisure, the specialist caravan and leisure industry retailer with sites in Lancashire and Cheshire, has seen losses fall as consumer confidence slowly returns.
The AIM listed group, which restructured with a CVA last year, said losses after tax for the six months ended February 28 fell 84% to £1.7m from £10.2m loss in the first half of 2009.
Like-for-like vehicle gross profit rose by 61% while administrative expenses reduced by around half.
Earlier this year Discover Leisure confirmed it had sold all but two of its seven surplus properties as it worked to reduce its outstanding debts. Among the properties sold was Warrington for £495,000 and Herne Bay at £400,000.
As a result of the restructuring and withdrawal from the holiday home business revenue fell by 55% to £18.2m in the period compared to £40.7m in the first half of last year.
The group now has five branches employing 260 people across the north of England, at Birtley in Tyneside, Delamere in Cheshire, Chorley in Lancashire, Darlington in County Durham, and York.
Chairman David Morrow, said: “Discover Leisure has made solid progress in the seasonally quieter first half of the financial year with a focus on the management of cash resources, cost reductions and the strengthening of our trading platform.
“This has resulted in gross margins returning to traditional levels and a significant reduction in losses.”
