Club Méditerranée has announced upbeat quarterly trading results, but admits progress is being held back by fears of a war in Iraq.

Group revenues for the first quarter of the 2003 financial year rose by 0.8 per cent to EUR340m, against EUR337m. On a like for like basis, with constant exchange rates, the increase was 7.6 per cent.

The company says the change in scope of consolidation stemmed mainly from the disposal of Forum Voyages last November, which accounted for EUR3m of revenues in the first quarter of last year.

In a statement, Club Méd said developments have been encouraging in a weak market environment: 'There was an EUR18m negative exchange rate effect on revenues, of which EUR12m from the American zone with falls in the US dollar, Brazilin Real and Argentinian Peso compared with levels in the first quarter of 2002.

'Nevertheless, this progress in activities has been held back in recent weeks by fears of a war in Iraq. As of 8 March, cumulative reservation levels for the season were up 3.5 per cent in terms of comparable revenue and 0.6 per cent in terms of number of clients, compared to last winter. These figures reflect a number of evolving situations with Jet Tours and the American zone currently maintaining sales growth of slightly more than 10 per cent in terms of revenues, for example.'

The company said the preference for late bookings is even more accentuated than last year with sales for April continuing, particularly for its ski villages. Details: www.clubmed.com