Trailfinders has posted a pre-tax profit of £45.7 million for the year to February 29 and predicts it will return to “substantial profit” after coping with the “profound impact” of Covid-19 in 2020.

Mike Gooley, founder and chairman, said the agency was capable of lasting for at least two years without income from commission or the need to borrow against its freehold portfolio.

However, he said the company had already cancelled more than 150,000 bookings due to the coronavirus pandemic.

Gooley said: “The effects of Covid-19 only reduced the last few weeks of profit to 29 February, 2020, but a profound effect will be felt in the current trading year, with already over 150,000 contracted travel plans now annulled.

“However, our traditional culture of trust accounting, together with prudent stockpiling of immense free cash reserves, shield us to the extent we can trade as usual for at least two years without commission income, or needing to borrow against our substantial freehold portfolio.”

Gooley added: “A position of unparalleled strength, together with the widespread winding up of weaker agencies, will see Trailfinders return to substantial profit in 2021.

“Trailfinders has expanded organically, with no new investment or any borrowings, over the last 35 years.”