MyTravel in the red after accounts adjustment
The backlash of aggressive accountancy policies have dragged tour operator MyTravel into the red for the first time in its 31-year history.
MyTravel yesterday reported that its £71m accounts adjustment resulted in pre-tax losses of £73m for the year ending in September. It also restated last year’s profits to £62m.
Finance director David Jardine left the company days after various accounting irregularities caused its share prices to plummet. Kazia Kantor, head of MyTravel’s audit committee, replaced him and is to lead a review of accounting procedures and controls.
‘These are extremely poor results and I am determined that we now draw a line in the sand,’ admitted Peter McHugh, chief executive officer of MyTravel.
The travel group has secured its financing for 2003 and insists its results will improve next year.