Lastminute Issues Profits Promise
Lastminute.com has reached a pivotal point in its history with the announcement that it will post its first pre-tax profits in the current quarter.
The profit figure does not take into account one-off costs and goodwill amortisation but Brent Hoberman, the chief executive of Lastminute.com, is encouraged by the overall health of the market. “Both the UK and France have performed exceptionally well during this very busy period for the travel sector,” he said in the statement yesterday.
The value of sales on the site is expected to rise to £110 million in the quarter ending in September. This represents an increase from £61 million in the previous quarter and reflects the contribution of recent acquisitions Travelselect.com and The Destination Group as well as the sale of more profitable holidays.
Lastminute is also engaged in an aggressive programme of cost cutting and has successfully shaved £9 million from its budget this year. Further savings are expected once the company has integrated the travel functions of the acquisitions with its own travel agency.
Shares in Lastminute.com, which were worth 380p at flotation, fell as low as 17p last September but have now stabilised and were up 3½p at 93p by mid-afternoon today.
