PROPERTY and leisure firm Minoan has raised £1.3 million on the stock market to fund its ongoing plans to build a travel empire by buying smaller rivals.
The Aim-quoted group, originally set up to develop property on the Greek island of Crete, has been on an acquisition spree that saw it take over three Scottish firms in the space of a year recently.
It said it will use the new war chest to raise group sales from the current £45m a year to £100m, by “buying customers” as it swallows up established independent travel agents.
Chief executive Duncan Wilson said he was “greatly encouraged” by the support for the share placing. Directors wanted to participate in the placing but were deemed to be in a close period because of their knowledge of the takeovers Minoan is currently considering.
Investors who took part in the fund-raising paid 8p a share, and their stock will be admitted to Aim on Thursday.
The company also announced it was in talks with “a major UK retail organisation” over selling travel products in branches, and was also looking to sell travel products for another company through “a Groupon type relationship”. It has signed early-stage agreements in both cases.
It added that it was mulling other opportunities, particularly in the expanding cruise market, and further announcements are expected in the near future.
Minoan moved its headquarters from Croydon to Glasgow last year and picked up a £500,000 Scottish Enterprise grant. Since March 2011 it has spent more than £3m building a travel empire north of the Border, buying Ayrshire-based Stewart Travel, Glasgow’s John Semple Travel and Ayr-based King World Travel.