The Aim-listed company said that trading in the final quarter of the year had “improved slightly” thanks to a better lates market.

“Subject to audit, the group now expects to have delivered broadly neutral profit before tax for the year,” the firm said in a trading update.

"Trading conditions are expected to remain very challenging, especially in view of the escalating conflict in the Middle East and recent acts of terrorism, and the effect these events may have on consumers’ propensity to travel."

The company had previously warned that it would make a small loss.

All Leisure has suffered from both ship issues and geo-political problems during the year.

Both Voyager and Minerva underwent maintenance driving down underlying revenues by £2.2 million.

Revenue from the tour operating division declined £5.1 million due to lower passenger numbers.

All Leisure had its cash reserves boosted by £3 million though a sale and leaseback of its Hebridean Princess ship.

The company is also considering making a number of redundancies across its All Leisure Holidays division, according to the Leicester Mercury.

The consultation will take a minimum of 30 days, indicating that between 20 and 99 people are affected.

The company’s financial year ended on October 31.

Despite the slight improvement, things are clearly still quite difficult for All Leisure Group.