Minoan warns on profits as Greek tension delays Crete resort

Shares in Minoan Group fell on Tuesday as the political tensions in Greece caused delays to its Crete project, meaning full-year results will be below expectations.

The hotels and resorts developer said its project in Crete has been delayed as it needed the signature of the Presidential Decree.

Following the agreement between Greece and the EU, the group expects normal government procedures to resume shortly.

Minoan was also hurt by the fall in oil prices, which hurt its corporate travel division.

"As can be imagined, the long running situation in Greece and, tragically, recent events in Tunisia have also had an impact," the company noted.

As a result, full-year profits will no longer meet current market expectations, but will be in line with the year before.

However, the company remained confident that expectations for 2016 remain valid as its travel division will "bear significant fruits in the coming year", it said.

Following the update, WH Ireland put its previous 'buy' recommendation and 29p target price under review.

Shares in Minoan fell 7.04% to 8.25p on Tuesday at 13:55.