Media

Travelzest plc, the online travel group offering specialist travel programmes, is pleased to announce its interim results for the six months ended 30 April 2008.

Financial highlights

• Total transaction value increased 5% to £90.2 million (2007: £86.3 million)
  Group turnover increased by 20% to £16.3 million (2007: £13.6 million)
• Profit before interest, tax and separately disclosed items (EBITA) under IFRS increased by 36% from £1.4 million to £1.9 million
• Normalised diluted earnings per share (adding back separately disclosed items, intangible asset amortisation and the income effect of conversion of options and warrants) increased 236% to 3.7 pence (2007: 1.1 pence per share)
• Interim results presented for the first time in accordance with International Financial Reporting Standards as adopted by the EU (“IFRS”) resulting in a reduction in current and prior year results of £0.4 million when compared to UK GAAP

Operational highlights

• Strong underlying profit growth achieved in the first half of the year
• Canadian winter based itravel2000.com business continues to perform well
• UK specialist tour operators performed to management’s expectations

Events after period end

• Acquisition of The Cruise Professionals Limited, a Canadian luxury cruise retailer for C$13m (£6.5m)
• Institutional placing of 682,000 new ordinary shares to raise £2 million
• Debt facility increased and extended for four years

Commenting on the results, Chris Mottershead, Travelzest’s Chief Executive, said:

“I am delighted that the Group has demonstrated underlying profit growth in the first half of the year, particularly against the backdrop of a changing global economic landscape. Our Canadian business has continued to perform well and we are pleased to have acquired The Cruise Professionals enabling us to grow our presence in the Canadian travel market, which has proved to be very beneficial for Travelzest to date. In addition by extending our debt facilities for four years we have secured long term financing for the Group.

We believe that by staying committed to our variable cost strategy and having a portfolio of different travel businesses with no dependence on one destination, type of holiday or domestic market, we are able to remain cautiously optimistic for the reminder of the year.”

 
Enquiries:

Christopher Mottershead  
Travelzest plc 01442 874 322
 
Martin Smith / Erik Anderson 0207 597 5970
Investec 
 
Samantha Robbins / Rebecca Sanders-Hewett 020 7822 0200
Redleaf Communications Limited