THE crisis at struggling holiday operator MyTravel deepened today after the group issued its second profits warning in just 18 days.

Investors were sent packing as the group warned of worse-than-expected trading and added that major revisions to accounting estimates were also likely.

Some £20 million has now been wiped from internal profit forecasts while the accounting revisions could lead to an extra charge of between £15 million to £30 million.

Chairman David Crossland today confirmed he had delayed his retirement to steer the business back on course.

He revealed details of a new management shake-up at the business which employs more than 600 people in Accrington and Helmshore.

The update comes just a week after chief executive Tim Byrne left the group with an estimated £1 million pay-off after a devastating profits warning two weeks ago.

MyTravel warned on September 30 - the end of its recent financial year - that accounting changes could wipe £15 million from its profits.

It said auditors Deloitte & Touche had insisted the group only book travel insurance sales when a customer begins their trip rather than when they make a purchase.

The group's shares plunged 66% in the first minutes of trading, a fall of 49.5p to just 26p, valuing the business at £128million.