Travelzest plc, today announces the following trading
update.
The Board of Travelzest announces that, following a full
reforecast of the Company’s businesses, it now expects that
trading in the second half of this financial year to 31 October
2009 will be behind the Directors’ original expectations,
although not significantly so.
The Board remains confident that, as a whole, sales in the
Company’s Canadian businesses will grow slightly, however,
general economic conditions continue to affect demand in both the
UK and Canada and the increasingly late bookings of consumers make
forecasting for the second half difficult.
Trading at VFB, the Company’s French focussed holiday
cottage business has been affected by adverse currency movements
since the start of the current financial year. This reduction in
volume has been partially offset by an increase in volume from the
Company’s Turkish offering via Tapestry Travel.
The Board has commenced a review of the cost structure of each
of its businesses to ensure that all appropriate areas to reduce
costs are identified and necessary action taken.
The Board anticipates that the Company has, in the current
financial year, incurred exceptional costs in respect of the
relocation of certain of the Group’s premises in both Canada
and UK, the permanent reduction in operating expenses, and the
write-off of commissions receivable from a Canada tour operator
that ceased trading in April 2009. The Directors do not anticipate
that this cessation by a Canadian tour operator will affect future
trading levels.
The Board expects to publish its results for the six months
ended 30 April 2009 in July 2009.
END
Enquiries:
| Travelzest plc |
|
| Jack Fraser |
01442 874322 |
| |
|
| Investec Investment Banking |
0207 597 5970 |
| Martin Smith / Erik Anderson |
|
