Revenues plunge 95.6% to €1.9m at The Travel Department

Escorted holidays business severely affected by Covid-19

The Travel Department directors believe  there is significant pent-up demand for its escorted trip offering. Photograph: iStock

The Travel Department directors believe there is significant pent-up demand for its escorted trip offering. Photograph: iStock

 

Revenues at the Dublin-based tour operator The Travel Department last year collapsed by 95.6 per cent to €1.9 million as a result of the Covid-19 pandemic.

New accounts filed by The Travel Department Ltd show that the group last year recorded a pretax loss of €3.3 million after enjoying a pretax profit of €3 million in 2019 – a negative swing of €6.3 million. Revenues declined from €43.5 million to €1.9 million.

The company’s main activity is escorted holidays. Directors noted in the accounts that they believe significant pent-up demand exists for the business’s offering, with the group is in a position to resume operations as vaccination coverage extends, restrictions are eased and the economy recovers.

The company paid out no dividend last year after paying out €3.12 million in dividends in 2019.

Last year, the firm recorded Irish revenues of €1.59 million compared to €36.2 million in 2019 while its UK revenues totalled €311,094 compared to €7.29 million in 2019.

In 2020, the travel firm received €581,773 in ‘other operating income’ which was comprised of Government Covid-19 wage subsidy payments. Numbers employed fell from 58 to 52 while pay to directors, including pension contributions, reduced from €135,015 to €99,928.

A note attached to the accounts stated that the directors have worked continuously and put in place appropriate measures to combat the financial impact of the Covid-19 pandemic.

Financing

These include securing new equity and debt financing together with an interest payment holiday and loan covenant forbearance.

Measures also include negotiating with suppliers on settlement terms, refunds and to carry forward prepayments and commitments to future tours.

The note stated that the directors have obtained approval for additional short-term Covid-19 support in the form of the continuation of an interest holiday in 2021, continued forbearance in loan facilities and additional working capital facilities. Directors said they are confident of the continued support of their shareholders if required.

At the end of December last, The Travel Department had a shareholders’ deficit of €521,946. The company’s cash funds reduced from €3.88 million to €3.06 million.