30 March 2009

Kaleidoscope boss unveils more details of financial plight

Kaleidoscope chief executive William Burton has unveiled further details of the companyÃ¢â¬â¢s plight in an interview with the firmÃ¢â¬â¢s local newspaper, the Harborough Mail.

The company, which owns Travelsphere and Page and Moy, announced last week it would be making around 60 staff redundant due to contraction in the escorted tours market.

Burton said the group was estimating a 20% drop in passenger numbers, which would lead to a 17% drop in turnover. The groupÃ¢â¬â¢s turnover was Ã&#pound;120 million last year.

Profit would also be further impacted by increased costs due to currency fluctuations and the rising price of oil, he explained.

The newspaper asked Burton to clarify rumours about Virgin Travel's attempts to buy Travelsphere.

Burton said virtually every major travel company at some stage in the last five years has been trying to buy the firm and there have been a dozen serious bidders.

"We are on everybody's shopping lists,Ã¢â¬~ he said.

Talking about the planned restructuring of the business, Burton said it was looking to introduce a dedicated in-house hotel service and ground services contracting.

By Bev Fearis