Xftseallworld1c Regulatory News (ALLG)

3 December 2014

All Leisure Group plc

("All Leisure", the "Company" or the "Group")

Trading Update for the year ended 31 October 2014

Financial Update

The Group is in the process of preparing accounts for the year to 31 October 2014, which are subject to audit and therefore not final. Underlying Operating Profit before separately disclosed items is expected to be approximately £0.9m (2013: £0.8m).

As previously notified in our half-year announcement of 11 July 2014, the unfortunate events of 2014 in Crimea and Ukraine have had a significant impact on the business. Two Black Sea cruises and a connected cruise in the Eastern Mediterranean were subject to substantial cancellations and subsequent discounting to fill capacity, with profit contribution down £1.9m versus budget as a consequence. In view of the on-going difficulties in the region the Group has reduced the number of cruises to the Crimean region in the current financial year from three to one.

A full year pre-tax loss for the Group of approximately £7.4m is anticipated (2013: £13.6m loss), after charging £7.4m for the disposal of the MV Discovery and a further £0.6m charge for other reorganization costs that will be separately disclosed in the financial statements.

The Group closed the year with cash of £11.6m (2013: £10.7m) plus further restricted cash balances of £3.5m (2013: £3.6m).

Total passenger numbers were as follows; Cruise passengers were 17.9k versus 16.5k last year (+8%). Tour passengers were 40k versus 44k last year, due to a reduction in capacity of 1,600 pax combined with reduced business to Egypt due to political uncertainty.

Operational Highlights

The last two years have been spent consolidating the former "All Leisure Group" and "Page & Moy" businesses into one, single-site business. Operational synergies of approximately £2m (full year basis) have been achieved.

The management team has been strengthened, and has focused on improving customer service and satisfaction measures. The MV Voyager has been established as the flagship of the "Voyages of Discovery" brand, which will be re-launched for Winter 15/16 with an improved product offering. The disposal of the MV Discovery in October 2014 represents a significant de-risking of the Cruise portfolio. The Hebridean Princess maintains its premium, 5-star positioning, and benefits from continuous capital investment to maintain its high standards.

The "Travelsphere" and "Just You" Tours brands have also both been re-launched based on customer research and feedback, incorporating quality improvements and new destinations. The Tours businesses offer 85 new tours in 2015 to stimulate consumer interest. Much work has been done to merge multiple legacy customer databases into a single customer database. The Company's in-house tele-sales team has been multi-skilled to drive efficiency.

Appointment of Nigel Arthur as Group Finance Director

All Leisure is pleased to announce the appointment of Mr Nigel Arthur as its Group Finance Director, effective immediately.

Nigel was formerly UK Finance Director of Thomas Cook plc, leaving this position in May 2014. Prior to this Nigel spent 10 years at Diageo plc where he held positions as VP Finance EMEA for Burger King Corp., Diageo International Finance Director, and Finance Director for Diageo Global Supply Chain. Nigel started his career at Price Waterhouse in London, before moving into industry at Guinness plc. Nigel is a Chartered Accountant and graduate in Economics from the University of Southampton.

The Company wishes to thank Mr Kevan Witts, who has acted as Interim Finance Director for the last three months. Kevan will remain as a consultant to the business to ensure a smooth transition of responsibilities. The list of all companies and partnerships of which Nigel Arthur has been a director in the previous five years can be found in the Appendix.

Outlook

The board is encouraged to note that 95% of Winter 2014/15 cruise revenue is already booked (2013: 88%). 84% of Winter tours revenue is already booked (2013: 88%). 2015 Revenue from Tour bookings to USA and Italy, the most popular destinations, are both trading up, whilst Tour bookings to certain Asian destinations (China, India, Vietnam etc) have declined in line with the overall market.

Enquiries:

Appendix: List of companies of which Nigel John Arthur (aged 53) has been a director in the previous five years

Note: those companies marked with a * above were in liquidation at the time of Nigel Arthur's directorship, or are currently in liquidation.

There are no further matters in connection with the Company's appointment of Nigel Arthur to be disclosed under Rule 17 or Schedule Two paragraph (g) of the AIM Rules.