Kuoni’s UK business has reported a 2% rise in turnover as improvements across its direct channels helped offset “pressure” on the travel agent business.

Turnover for the year up until the end of December 2013 hit £293m, as pre-tax losses were cut by 51.3% to £3.8m, according to accounts for Kuoni Travel Ltd recently published at Companies House.

“While there is growth in the direct channel, trade distribution remains a significant area of continued focus despite the continued consolidation within the UK trade,” the directors said in their strategic report.

Kuoni’s struggling specialist escorted touring operator Journeys of Distinction also continued to affect the company. The accounts reveal an impairment charge for the year of £417,000 (although this was well down on last year’s £3.7m).

“Overall, turnover increased by 2% from £287m to £293m as improvements in the direct channels offset the pressure on the agent business,” the directors said.

“Operating loss increased to include the write-off of the remaining goodwill on Journeys of Distinction reflecting the continued decline in this business.”

Kuoni reportedly paid an eight-figure sum for the direct-sell operator in 2006.

Separate accounts show that pre-tax losses at Journeys of Distinction Ltd for the same period increased by 27% to £609,000 as turnover tumbled. In 2007 the Cheshire-based operator reported turnover of £30.3m, but in 2013 it had fallen to £4.3m.

Journeys of Distinction is one of Kuoni’s specialist brands, which also include Kirker Holidays and Carrier.