Kuoni UK has lost money for the sixth consecutive year as it continues to take a hit from pre-recession acquisitions.
In the late 2000s the company embarked on a spending spree (see below), splashing the cash on businesses that now make up its specialist businesses subsidiary.
While the likes of Kirker Holidays and CV Villas are generating a profit, Journeys of Distinction has struggled in recent years and in September Kuoni said it would close the business.
Kuoni Travel Ltd’s most recent results, covering the 2014 calendar year, were recently released at Companies House. They were filed more than a month late.
The company (including subsidiaries) made an operating loss of £2.6m, down from £3.4m. Revenue, however, fell 2% to £287m.
In recent years the company has sought to branch out into retailing, opening its own stores and partnering with John Lewis. It now has 35 stores in total.
Growth in Kuoni’s own shops and through its website have helped “offset the continuing decline in B2B distribution particularly through the large travel agents, known as multiples”, it said.
In January, Kuoni Group announced plans to exit the tour operating arena, putting its various businesses, including the UK, up for sale. Eventually a deal was struck with German-based co-operative Rewe Group.
Soren Hartmann, chief executive of DER Touristik, a division of Rewe Group, told TTG: “The underlying trading performance of Kuoni in the UK is positive and profitable, and we fully bought into the strategy for continued growth.
“The published figures, which pre-date the acquisition by DER Touristik, include a significant figure for the amortisation of goodwill in relation to previous investments in the specialist businesses as well as a management group charge made by Kuoni Group.
“As part of the new-look DER Touristik group, we are looking forward to taking the business forward in the UK market and we are working closely with the UK management team to do that.”
Derek Jones, Kuoni UK managing director, added: “Our 2014 results pre-date the acquisition of Kuoni UK Group by Rewe Group, and we are looking forward to taking the business forward under new ownership.”
