Minoan Group

www.minoangroup.com TICKER: MIN     EXCHANGE: AIM

The Minoan Group specialises in luxury tourist sites across the Mediterranean, most notably in Greece. The company operates to design, create, develop and manage the construction of environmentally friendly luxury resorts, providing hotels, private villas, and on-site entertainment such as high-grade golf courses and swimming pools. In March 2011 Minoan acquired King World Travel Limited, an independent travel business based in Scotland. Subsequently, Minoan has acquired a 20% stake in Stewart Travel Centre, another Scottish travel agency, and has signed a management agreement with the owners for the future operation of Stewart. It has also recently (May 2011) signed a General Sales Agency Agreement with Sunwing Travel Group, for King World Travel to become the General Sales Agent in the UK for Sunwing's UK-Canada flying programme.

LATEST REPORTS

 
Value in Crete
Published: Apr 04 2016

Minoan Group is engaged in the holiday/leisure business. It has a long standing project for a luxury leisure/holiday complex in Cavo Sidero in Eastern Crete, and also operates in the UK travel agency sector.
The Presidential Decree ('PD') authorising Minoan's major development in Crete outshines the group results for 2014/15 just published. The results themselves are satisfactory, if not exciting - but the Greek decision turns attention back to the company as an asset play of significant potential value.
The PD is the first approval for a major foreign leisure development in Greece for the past 30 years. It opens the way to a 2,000 bed luxury hotel and residential project in the spectacular North-East corner of Crete, and will be a 'trophy asset' in the making.
On activation of the contract with the Toplou Monastery Foundation ('the Foundation') Minoan will have a number of options open to it to realise value. The most likely of which we believe would be a partnership deal with a leading international operator, combined with investment from other sources: Middle Eastern and, more recently, Asian financial institutions have been persistent investors in high end hotel and leisure assets, and some very high prices have been realised.
Valuation is difficult at this stage, but we have calculated a range of possible values, which translate into the following target prices for Minoan shares: Short term 21p  /  Medium term 41p  /  Long term 61p.
 
Travel on a roll: Crete to come
Published: Jul 31 2014

Minoan Group Plc is engaged in the holiday/leisure business. It has a long standing project for a luxury leisure/holiday complex in Cavo Sidero in Eastern Crete, and has more recently embarked on diversification into the UK travel agency sector.
Interims show that continued progress by the Travel & Leisure division has produced a further substantial fall in group reported losses in H1 2013/14, with the division close to achieving its first objective of funding ongoing expenses of the Cretan project.
Our estimates suggest that T&L pre-tax is set to reach close to £1m in the 2014/15 financial year, by which stage group losses should be eliminated. This is without benefit of more acquisitions.
The project in Crete is moving towards realisation, but is still subject to some delays before the Presidential decree is issued, probably in the Autumn.
We maintain our fair value estimate at 32p per share, more than double the current price.
 
A double breakthrough
Published: Apr 06 2014

Minoan Group is engaged in the holiday/leisure business. It has a long standing project for a luxury leisure/holiday complex in Cavo Sidero in Eastern Crete, and has more recently embarked on diversification into the UK travel agency sector.
Within the space of a few days, Minoan has produced a very encouraging set of results and also achieved a breakthrough regarding its luxury resort development project in Crete.
Travel and Leisure is at a tipping point, and we expect it to become a significant contributor to group profits over the coming years. In 2012/13 net revenue grew from £3.7m to £5.2m, on gross billings up from £37m to £51m. Minoan has the management and systems in place to handle billings of £100m, and will undoubtedly acquire more branches.
In Crete, the key Strategic Environmental Assessment has been approved by both the local Sitia community and by the regional Crete authority. What remains is a Presidential Decree, due soon. The project is almost entirely de-risked politically.
We believe that Crete is worth more than £60m or 27p per share to Minoan. For the whole group we set a fair value of 32p per share, almost double the current price.
 
Tidying up
Published: Feb 12 2014

Minoan Group is engaged in the holiday/leisure business. It has a long standing project for a luxury leisure/holiday complex in Cavo Sidero in Eastern Crete, but has more recently embarked on diversification into the UK travel agency sector.
Today's decision to buy back the 20% minority in the Travel and Leisure business follows on from the recent £5m loan facility from Hillside International Holdings. Management confirmed the unit should hit its target of operating profit in excess of £0.6m, against £0.47m in the previous year. 
We expect, after submission of the Strategic Environmental Assessment, that formal approval for Crete could be achieved towards the end of Q1 calendar 2014, and it is a reasonable expectation that work could be initiated in the first half of 2015.
With planning permission, Minoan would have an asset in Crete valued by CBRE (the former CB Richard Ellis) at £83m, which contrasts with a current market cap of just £16m.
 
Trading update
Published: Dec 13 2013

Minoan Group is engaged in the holiday/leisure business. It has a long standing project for a luxury complex in Cavo Sidero in Eastern Crete, but has also embarked on diversification into the UK travel agency sector.
Operating profits in Travel & Leisure are expected to improve significantly in the current year, following re-branding, reorganisation and rationalisation. 
The project in Crete is warming up, with recent confirmation that it will be assessed under the new Article 24 of the Fast Track Laws. The Strategic Environmental Assessment is being revised and will be submitted before the end of this calendar year. So formal approval could be achieved towards the end of Q1 calendar 2014.
Approval would open up a range of possibilities for Minoan as a group. With planning permission, Minoan would have an asset valued by CBRE at €100m (£84m).
 
Travel grows, and value in Greece
Published: Mar 25 2013

Minoan Group is engaged in the holiday/leisure business. It has a long standing project for a luxury leisure/holiday complex at Cavo Sidero in North Eastern Crete, but has more recently embarked on diversification into the UK travel agency sector.
In the last 18 months the group has established from scratch a travel agency business and the results just announced confirm the substantial progress made in development. Travel billings were £37.4m, against £7.4m in the previous year. They are now annualising at £48m on our estimates.
The Cretan development has been recognised as of strategic importance to Greece, and granted Fast Track status by the government Although there are hurdles yet to be jumped (another appeal), they are set very low in comparison with what has gone before, and we think it now very likely that final approval will be achieved soon.
We set our fair value at 32p per share, before any allowance for risk relating to Crete or the travel business, versus 6.6p currently.
 
Greece: turning up trumps
Published: Sep 21 2012

Minoan Group is engaged in the holiday and leisure business. It has a long standing project for a luxury holiday complex in Cavo Sidero in Eastern Crete, but has more recently embarked on diversification into the UK travel agency sector.
Minoan's Cretan development has been recognised as of strategic importance to Greece, and has just been granted Fast Track status by the government. This removes most of the procedural risk from the project.
In one of the biggest privatisation programmes in the world, Minoan has been short-listed in the final phase of the bidding process for exploitation of the Afantou area in the island of Rhodes.
In the last 18 months the group has established from scratch a travel agency business with strong prospects of growth through a policy of acquisitions and organic growth, which alone accounts for almost 50% of the present share price.
With growing confidence, but allowing for remaining procedural risk attached to the Cretan project, our new fair value estimate per share is 30.5p versus current 13.5p level.

ARCHIVE

2012
Cash value for Greece
Published: Jun 20 2012

Minoan Group is engaged in the holiday/leisure business. It has a long standing project for a luxury leisure/holiday complex in Cavo Sidero in Eastern Crete, but has more recently embarked on diversification into the UK travel agency sector
Minoan has just unveiled a JV for its Greek assets, a hugely significant event for the group as for the first time, this places a cash value on the Cavo Sidero development project: this provides massive solidity to the investment case
Significantly, the initial payments from the Partner should cover all Greece associated costs for the coming year
Taking into account cash received from the Partner, and our value for the travel businesses (which look very promising) the lower value for Cavo Sidero would give us a Minoan fair value of 20.8p per share, the higher one of 38.7p
We average these two numbers to arrive at a fair value for the group of 29.8p per share, which is nearly 3x the present share price
Progress in UK and Crete
Published: Apr 03 2012

Minoan Group Plc is engaged in the holiday/leisure business. It has a long standing project for a luxury leisure/holiday complex in Cavo Sidero in Eastern Crete, but has more recently embarked on diversification into the UK travel agency sector.
Last week saw two significant announcements in one day:
Minoan has submitted its application for its Cavo Sidero project to be recognised as a strategic investment and for it to be included in the Fast Track Process;
Results for the 13months to October 2011 were released. These are in line with our Headline expectations (see our note dated 16 March 2012), and emphasise the fact that the new travel business is in underlying profit and should be cash positive going forward.
The travel business looks like an increasingly profitable additional arm of the group, given the potential to come from synergy and rapid expansion from acquisitions, which should begin to show through in 2012/13.
Our fair value estimates remain unchanged: the travel business at 11p per share and Cavo Sidero at 17p per share, making a group estimate of 28p.
Trading up: Scottish cluster completed
Published: Mar 16 2012

Minoan Group is engaged in the holiday/leisure business. It has a long standing project for a luxury leisure/holiday complex in Cavo Sidero in Eastern Crete, but has more recently embarked on diversification into the UK travel agency sector.
Minoan looks to have completed the assembly of its first regional cluster of travel businesses by the acquisition of the 80.1% of Stewart Travel Centre not already owned. The initial cash cost of the transaction is GBP 320,000 and there will be a convertible loan note of GBP 225,000 plus an earn-out relating to the period to end October 2012.
Trading: business is holding up very well in a challenging environment. Bookings, including Stewart, are down 2% and commissions only 1%, which compares with a drop in industry bookings of 14%.
More news flow from Minoan is expected over coming months. For the moment we have left our fair value estimates unchanged: the travel business at 11p per share and Cavo Sidero at 17p, making a group estimate of 28p.
2011
Better to arrive than travel in hope
Published: Oct 03 2011

Minoan Group Plc is engaged in the holiday/leisure business. It has a long standing project for a luxury leisure/holiday complex in Cavo Sidero in Eastern Crete, but has more recently embarked on diversification into the UK travel agency sector.

The proposed acquisition of John Semple Travel Ltd ('Semple') confirms this diversification strategy now, which will deliver profits and positive cash flow to the group for the first time in its history. The luxury development at Cavo Sidero in Crete has been stalled for many years, but it is still live.

We place a value on the new travel business of 11p per share and on Cavo Sidero of 17p, and therefore set our fair value at 28p per share versus current 11p level.

2008
The Final Hurdle
Published: Jul 22 2008

£1.4m placing should ensure sufficient cash to start of Cavo Sidero project

New Greek National Land Plan favourable to Minoan

Target price reduced to reflect more conservative assumptions but, at 180p / share, is still much higher than the current price of 30p

2007
Huge value of Cavo Sidero project becoming more visible
Published: May 03 2007

  • Minoan admitted to AIM
  • Revised share price target of 228p (from 175p previously) versus current 98.5p
  • Revised target allows for delays in Cavo Sidero and includes a risk factor
  • Valuation compares favourably with Dolphin Capital Investors
2006
Minoan gets green light for massive resort development in Crete
Published: Nov 13 2006

  • Govt approval granted for Cavo Sidero
  • Main construction to begin middle 07
  • Fair value of 175p vs current 94.5p
2005
Minoan; exciting Mediterranean resort development
Published: Dec 20 2005

  • Development of luxury site in Crete
  • Land valued at 80m vs 15m market cap
  • Support of Greek Prime Minister
  • Construction to begin 06
  • Short term price target 100p (currently 50p)