All Leisure snaps up escorted tours specialist
Tour operator All Leisure has bought loss-making Page & Moy Travel Group for £4.2m to expand its business beyond the destination-led cruise market.
All three Page & Moy brands, escorted tour specialists Travelsphere and Page & Moy, and singles operator Just You are included in the sale, although the company announced last year that its eponymous brand was to be ditched in 2013 as part of a plan to return the company to profitability.
Last year the group made an operating loss of £5.6m, but it claimed it would turn a profit this year following a cost-cutting programme initiated by new chief executive Ian Smith who joined last summer. See earlier story
All Leisure said the purchase of Page & Moy was in line with its strategy of growing by by providing niche holiday products for over-55s as well as exploiting demand for destination-led cruise holidays.
It said organic growth would be complemented by further strategic acquisitions, also in the over 55s market.
"The Board believes that Page & Moy Travel Group has a large UK customer database which is compatible with All Leisure’s," said All Leisure chairman Roger Allard. "The enlarged group will have access to a list of nearly 4m households (mainly 55 and over) and this is expected to lower the cost of customer acquisition."
Last year, Page & Moy carried 88,000 passengers. All Leisure said the enlarged database would be used to increase direct bookings, but he said the company still planned to grow business through the trade.
"We have a strong trade facing brand and we will continue to work closely with travel agents," said Allard.
He said All Leisure would work with Page & Moy’s management team to implement an integration plan over the next few months, which he admit would be costly.
All the management team would remain in place and the Page & Moy Leicestershire-based calls centre would remain, he added.
"We have no plans to change anything. We are here to assist Page & Moy. Of course we are looking for synergies and that may lead to some changes affecting a few staff, but nothing major."
The company has borrowed £5.8m to fund the acquisition, £4.4m from Allard (pic above), £250,000 from non-executive director Nigel Jenkins, and £400,000 from director of All Leisure Holidays David Wiles.
Page & Moy has fixed assets of £4.4m, including a property worth £3.6m. Its losses will be used to reduce All Leisure’s future taxes.
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
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