Advantage Travel Centres Limited has announced an after tax loss for its last financial year of £1.47 million across the group however, the organisation has maintained a strong balance sheet, despite the turbulent trading conditions.
Advantage has consciously built a robust balance sheet over the last six years in order to ride any downturn. As a result, Advantage was able to sustain a high level of service to its membership whilst maintaining a strong voice advocating the role of independent travel agents to the wider industry and Government.
The financial result was driven by difficult trading conditions for the year, specifically in the wake of the Covid19 pandemic, which has hit the entire travel and hospitality industry heavily. Revenues were also muted by member subscription concessions to support agents and a number of bond calls in its underwriting business.
Advantage Travel Partnership, the core business of the organisation, reported a balance sheet value of £5.10million for the financial year, compared to 2019 figures of £6.22million.
Commenting on the results, Advantage Travel Partnership’s non-executive chairman, Steven Esom said: “The past year has been one of the toughest trading years for the travel sector in living memory and that is naturally reflected in our financial results for the period.”
He continued: “Over the years our organisation has built up a robust and healthy balance sheet from its subsidiary businesses which has enabled our core business to continue investing in its member services, such as market leading Advantage Managed Services operated through an independent, fully ringfenced trust facility, as well as the newly formed home working division, Travel Specialist. Advantage is positioned to make the most of the predicted resurgence in the travel market over the next 12 months and is in good financial health with a great leadership team who I would like to thank for their continued hard work over the last 12 months.”
Julia Lo Bue-Said CEO of Advantage added: “We made a deliberate strategic decision at the outset of the pandemic to remain member focused throughout the crisis, even if that meant profitability would come under strain. Because we are member owned and have no other shareholders to satisfy, we have been able to do this – concentrating specifically on supporting and being proactive with our members, which has meant keeping a core team working to maintain member support throughout the pandemic.”
“We were also determined to initiate a high profile media campaign making the voice of our members heard to government and the consumer, something we believe we have been successful in doing, and despite these difficult trading conditions, we have seen a 40% rise in new member enquiries thanks to the team’s hard work.”
