The struggling British tour operator MyTravel will be able to continue trading until the end of next year after reaching a loan agreement with its banks.

The group's performance has been unacceptable

David Crossland, MyTravel chairman

But the company said it lost �72.8m ($113m) in the year to the end of September.

And it has restated its profits for the previous year. Instead of the �81m profit announced in 2001, MyTravel said it actually made only �62m.

The company said shareholders would not get a final dividend this year.

The group also announced that its finance director David Jardine was leaving immediately along with Richard Carrick, chief executive of the global development division.

Selling the business

"MyTravel has gone through the worst year in its history," said the company's chairman and founder David Crossland.

I think that our finances going forward at this point are as strong as anyone's

Peter McHugh, MyTravel chief executive

"The group's performance has been unacceptable."

But he said the level of bookings this year made him optimistic.

The company's chief executive, Peter McHugh, said MyTravel would sell some of its operations as part of the plan to reshape its business.

In a conference call with reporters he said that a "small business" had been lined up for immediate disposal.

But he refused to say if there had been any takeover approaches from other businesses.

'Unacceptable accounting problems'

"I don't think we need to sell large chunks of the company to survive," Mr McHugh told BBC Radio 5 Live.

"I think two of the major strengths we enjoy are the loyalty of our customers and the dedication of our employees. These turbulent times have not diminished either."

He said the financial crisis had been caused by the company's poor forecasting, problems with trading during 2002 and "unacceptable accounting problems".

The company said that those accounting problems in the UK had cost the group �70m.

Shares rally

But Mr McHugh insisted the worst was over: "I think that our finances going forward at this point are as strong as anyone's."

MyTravel shares lost nearly two-thirds of their value in a single day last month after the company issued its third profits warning in five months.

After the refinancing deal was agreed shares in the Rochdale based company rallied and they closed 3.75 pence higher at 33.75p