MINOAN Group has revealed that it is running the rule over several potential significant transactions to expand its Glasgow-based travel agency business, underlining its continuing appetite for acquisitions.

The company has built up a sizeable travel agency business with a major presence in Scotland in recent years through a series of acquisitions masterminded by managing director and travel industry veteran Duncan Wilson.

Minoan, which is also pursuing a major hotel and leisure development on the Greek island of Crete, says in its latest interim results published yesterday that its travel agency business has enjoyed an improved underlying trading performance. And it flags the buoyancy of trading in July.

The company says that this travel and leisure division made a gross profit of £2.98 million in the six months to April 30, up by more than 19 per cent from £2.49m in the previous first half.

Minoan chairman Christopher Egleton said: “The underlying trading performance of the division continues to improve, with July already being the best trading month of the year. In addition, we are examining a number of significant transactions to expand this division, not least through acquisitions which will be earnings-enhancing.”

He declared that Minoan’s "specialist" travel operations, which include golfing and Canadian holidays and Santa trips, had done particularly well with first-half gross sales increasing by more than 35% per cent and commission by 27 per cent.

He added: “This, together with the overall improvement, reflects the continuing effect of the successful integration of earlier acquisitions.”

Shares in Minoan rose by 0.375p to 9.75p yesterday.

Minoan posted a first-half operating loss, after operating expenses, corporate development costs and share-based payment charges but before finance costs, of £584,000. This was down slightly from £594,000 in the previous first half.

However, after financing costs, Minoan’s first-half loss before taxation widened to £759,000 from £694,000 in the first six months of the prior year.

Minoan cited the impact of an increased depreciation and amortisation charge in its travel and leisure division.

Mr Egleton said: “The group has seen improved growth in the first half, with the travel division benefiting from the strength of the pound and the UK’s continuing economic recovery. Trading remains strong with the business in robust shape to move forward over the rest of this year and management continue to examine earnings-enhancing strategic acquisitions to further improve the travel and leisure division's performance.”

Highlighting hopes of obtaining final approval from the Greek authorities for the proposed development on Crete, Mr Egleton said: “The approval of the Itanos Gaia luxury resort project in Crete is nearing its final stages. The recent Parliamentary decision in favour of a renewed agreement with creditors should stabilise government procedures and allow the Presidential Decree to be signed.”