- Minoan Group has warned that results for the current financial year will not meet current market forecasts but are expected to be in line with the previous year.

The company said the board is pleased to note that the situation in Greece now appears to be moving towards resolution.

An update says: "The Government, elected in January this year, has been concentrating its efforts on resolving the larger issues facing the country and, understandably, this has meant a delay in the procedures leading to the signature of the Presidential Decree for the group's project in Crete.

"As announced on 18 March 2015, a Plenum of the Greek Council of State (the highest Court in Greece) gave its unanimous approval of the draft PD, which was signed off by the President of the Council of State. In normal circumstances the Greek President's signature of the PD would have followed in a few weeks.

"In the hope that the agreement between Greece and the EU/Members of the Eurozone will now be ratified by the Greek Parliament, the Group has been advised that normal Government procedures will resume shortly thereafter.

"In the meantime, the underlying performance of the Group's travel division has continued to improve with Gross Sales up by 15% and Commissions up by 17% in the current financial year. This is despite difficulties in Aberdeen relating to the oil price, which have had a detrimental effect on the performance of our corporate travel division. This will be ameliorated going forward by the recent acquisition of other non-oil related corporate customers.

"As can be imagined, the long running situation in Greece and, tragically, recent events in Tunisia have also had an impact. In addition, there has been a dispute with our back office services provider relating to cash settlements, which has now been resolved. The effect of this on our profitability means that the Group's results for the current financial year will no longer meet current market expectations but are expected to be in line with the previous year.

"As these items are all one-off, we do not believe they will impact upon trading in the financial year ending 31 October 2016 and accordingly we believe that market expectations for this period remain valid.

"Nonetheless, the Group is continuing to pursue a number of opportunities about which we will update the market and shareholders when they are concluded. The Board is confident that the group's travel division will bear significant fruits in the coming year." The group will be publishing its interim results at the end of this month and will give additional updates in due course.

At 1:48pm: [LON:MIN] Minoan Group PLC share price was -0.63p at 8.25p

Story provided by