MYTRAVEL, the Rossendale-based holiday firm, has confirmed its financial results show it has made a profit for the first time in five years.

The company, formerly known as Airtours, which employs 300 people at call centres in Accrington and Helmshore, revealed earlier in the year it expected to make the "milestone" profit of about £40m, despite terrorist incidents "scaring" away some holidaymakers.

Now results for the group show it has made a profit before tax of £43.8m compared with a loss in the previous year of £17.4m.

Loss from the UK side of the business was reduced by 53 per cent to £12.9m, from £27.4m in the previous year.

But MyTravel was sent back into profit by its business carried out outside the UK.

Recently MyTravel also announced it was in discussions to buy the package holiday arm of rival company First Choice Holidays in a deal thought to be worth £500m.

Peter McHugh, chief executive of MyTravel Group plc, said: "MyTravel's return to profitability marks a significant milestone in the turnaround of the group.

"We are particularly pleased with the 20 per cent improvement in operating profits in what has clearly been a difficult year for the travel industry.

"Our strategy going forward is to position our package holiday businesses for the future and to develop growth opportunities.

"The possible acquisition of First Choice's mainstream business and certain related operations is one of a number of opportunities we are evaluating.

"We are optimistic about the future and confident that we have identified the strategies for our future success."