Xftseallworld1c Regulatory News (ALLG)

All Leisure group plc

Pre-Close Statement

As part of its financial year end update, the board of All Leisure group plc ("the Group") (AIM: ALLG), the niche cruise and tour operator (following the acquisition of Page & Moy Travel Group ("PMTG") in May 2012) specialising in the over-55s market, announces that based on the latest management information it expects to report a modest profit before tax for the year ended 31 October 2012.

During this period, the Group made the strategic decision to aquire PMTG, which has further enhanced the Group's portfolio by adding the brands of "Travelsphere", a market leader in the provision of worldwide escorted tours; and "Just You" which provides premium singles holidays.

As outlined at the time of acquisition in May 2012, PMTG has not only met with the deal's strategic rationale but has also created a number of key opportunities: it has enabled the enlarged group to strengthen the senior management team with the appointment of Ian Smith as Group Chief Executive Officer and Chris Gadsby as Group Finance Director. In addition, by streamlining the Group's businesses there is scope for the Group to maximise synergies.

The focus clearly continues to be on maximising these synergies. This should in part counteract the negative impacts from unprecedented natural disasters and geo-political events, double dip recession, reduced discretionary customer spending, persistent low interest rates, increased oil prices and weak Sterling all of which are further exacerbated by increased Air Passenger Duty.

Cruising Brands:

Swan Hellenic

Minerva underwent a major refit and substantial upgrade over the winter period in Bremerhaven which added 32 balconies, increased the size of some cabins, upgraded bathrooms as well as the introduction of an observation lounge and general technical upgrade. These upgrades were in large part funded by the ship's owner. She re-entered service on schedule on 2 March 2012 and following completion of the summer season in Europe, is now cruising towards the Far East where she will spend the winter.

Voyages of Discovery

Discovery successfully completed a very challenging summer trading season and we announced at the end of August 2012 that we had entered a Joint Venture with Cruise & Maritime Voyages ("CMV") to commence at the end of February 2013 after completion of the dry dock currently underway in Genoa.

The trading environment made it necessary for the Alexander von Humboldt to lay up for this year in Genoa. The ship is currently going through a significant upgrade as a result of listening to our customer feedback which includes offering open dining (rather than first & second sittings), a greater choice of restaurants, outside and balcony cabins. We are sure that providing improved quality will enhance our customer experience. The ship enters into service next week, having been renamed Voyager, and will operate as the flagship for the Voyages of Discovery brand. Voyager's maiden cruise is scheduled to commence on 4 December 2012 to the Caribbean and circumnavigate South America for the winter, before returning to European waters in Spring 2013.

With the joint venture on Discovery and a charter of Voyager for 79 days next Summer to Allways of Belgium, overall capacity for the Voyages of Discovery brand for the financial year ended 31 October 2013 will be reduced by over 20% compared to the year ended 31 October 2012.

Hebridean Island Cruises

Hebridean Princess has completed another satisfactory summer and continues to receive very positive reviews from her passengers. Hebridean Princess does not suffer a lot of the negative headwinds that our industry has. The introduction of river cruises in Summer 2012 was extremely successful and we look forward to expanding this market over the next few years. Hebridean Princess will enter her annual dry dock shortly before recommencing operations in March 2013.

Tour Operating:

Both the "Travelsphere" and "Just You" brands, based at our freehold property in Market Harborough, have performed exceptionally well since acquisition and have made a better than expected contribution to the bottom line. Discover Egypt continues to face challenging times but has contributed profit nonetheless.

Currency & Fuel:

Foreign exchange and the price of fuel continue to be two of the many headwinds that we have to contend with. The majority of our currency requirements for the financial year 2012/13 have been hedged at or above budgeted levels. In addition, in line with the year ended 31 October 2012, approximately 30% of our fuel requirements have been hedged for the new financial year.

Outlook:

Whilst the industry in general and our business in particular will continue to encounter many challenges over the next 12 months, we will be focusing on opportunities to integrate our tour operating and cruise businesses even more closely thereby partly mitigating the significant trading headwinds. A further update on these synergies and cost benefits will be provided when audited results for the year ended 31 October 2012 are released by February 2013.

The strategic importance of the acquisition of PMTG cannot be underestimated. Whilst restructuring costs will be incurred in the short term, the board is confident that the synergy benefits that it has identified will deliver a strong contribution to the bottom line in future years.

All Leisure group PLC