Profits rise for Lowcosttravel Group
Lowcosttravel Group saw pre-tax profits rise by almost 50% to more than £450,000 in the year to October 2008.
Total transaction value in the 12 months was up by 44% to £50 million with gross profit margins maintained at 13%.
The online travel company, which has since acquired transfers company Resorthoppa, said net margins were increased during a tough trading year following "sunstantial" investment in new technology.
Pre-tax profit for the year ending October 31, 2008, reached £457,329 from £308,462 the previous 12 months.
The group has three main strands – trade-facing ABTA member lowcostbeds.com, consumer dynamic packaging brand lowcsotholidays.com and Resorthoppa, which joined in January.
CEO Paul Evans said: "Despite increased competition, the economic downturn and the depreciation of sterling, our business is trading very strongly and we are experiencing record sales every week.
"Currently we are seeing 186% growth in like for like sales and 220% at group level, including Resorthoppa.
"Resorthoppa sales are up 25% year on year since our merger.
"Our trade business and partnerships continue to go from strength to strength and our direct consumer business is recording significant growth levels, despite the economic doom and gloom reported every day."
Average holiday prices are up by three per cent year on year and currency hedging has meant the company has been able to raise its margins despite "intense" price competition, he added.
"Our investment in our super fast and advanced technology platform last summer has made a huge difference to our customer conversion and retention," said Evans.
"We have a brand that will stand us in good stead in these difficult economic times and we look forward to continued growth."
by Phil Davies
Phil Davies
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