Holiday company Low-cost Travelgroup has gone into administration, blaming the uncertainty surrounding the EU referendum and the fall in the pound.

Administrators Smith & Williamson and CMB Partners were appointed when the group ceased trading on July 15th with the loss of 120 jobs.

Attempts to find a buyer were hampered by “the recent and ongoing turbulent financial environment".

The group experienced significant market headwinds in the run up to the EU referendum as holidaymakers delayed decisions. This was compounded by the Leave vote itself and the subsequent fall in value of the pound," said Finbarr O'Connell of Smith & Williamson.

"Regrettably, in these extraordinary conditions, the directors had no option but to place Lowcost Travelgroup Limited into administration.”

As the company is based in Mallorca, it is not part of the UK’s ATOL scheme and the Balearic Islands authorities are thought to be responsible for the holiday protection arrangements for the company's customers.

The Civil Aviation Authority (CAA) commented: "We believe the company may have had a large number of British customers and many of these are likely to be overseas.

"Our understanding is these customers should have valid flight tickets to use to return home to the UK. We advise customers to check the status of their bookings with their airline and accommodation provider.”