Press Releases

Travelzest plc, an integrated retail and wholesale travel group offering specialist travel programmes, is pleased to announce its interim results for the six months ended 30 April 2009.

Financial highlights

• Total transaction value increased 20.6% to £108.8 million (2008: £90.2 million)
• Group Revenue increased by 40.7% to £22.9 million (2008: £16.3 million)
• Gross profit increased by 9.1% to £11.5 million (2008: £10.5 million)
• Profit before interest, tax and separately disclosed items (as disclosed in note 7 to the interim results) (EBITA) increased by 42.3% to £2.8 million (2008: £1.9 million)
• Profit before tax of £0.9 million (2008: Loss of £0.1 million)
• Basic earnings per share increased to 0.36 pence (2008: Loss of 1.77 pence per share). Normalised diluted earnings per share (adding back separately disclosed items and intangible asset amortisation) decreased by 1.2% to 4.18 pence per share (2008: 4.23 pence per share)
• Net debt of £11.7 million (2008: £5.6 million, fully drawn down bank facility of £16.0 million renegotiated June 2008)

Operational highlights

• Canadian operations continue to show strong revenue growth with itravel2000's continued expansion into regional markets, the expansion of product lines, and the inclusion of The Cruise Professionals Limited results for the first time
• UK operations performed slightly below management's expectations due to lower outbound travel by UK residents to Euro based countries. However UK operations are showing some improved performance in certain groups, with Tapestry Collection showing the strongest performance for the period

Events after the period end

• Appointment of new senior executive team for the group with Jonathan Carroll (formerly President of itravel2000) assuming the role of Chief Executive and Jack Fraser (formerly Chief Financial Officer and Head of Corporate Development for itravel2000) assuming the role of Chief Operating Officer and Financial Director
• A new corporate vision and strategic initiatives has been launched with a strong focus on revenue growth, resource productivity, and operating profitability

Banking Facilities

The Group announces that it is currently re-negotiating its existing banking facilities with its debt facility provider who remains supportive of the Group. In connection with these negotiations, the Company also announces that it is contemplating a fundraising through a placing of new ordinary shares to certain existing shareholders and Directors. A further announcement will be made in due course.

Commenting on the results, Mark Molyneux, Chairman, said:

"We experienced continued growth in our Canadian operations during these very difficult economic times. Following their appointment to the Board, we are expecting Jonathan Carroll and Jack Fraser to provide the same leadership and strength they have shown in Canada with itravel2000 to the Travelzest group as a whole.

We continue to be cautious about our second half outlook due to the limited visibility we have with the later booking market that exists. However we are seeing some promising signs in the group and we continue to leverage off of these as well as look at new ways to control costs and be innovative in our strategies for growth."

Enquiries:

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