Minoan Groupwww.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.
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.
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
- 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