Travelzest considers bids as profits climb
Travelzest made a bigger profit last winter despite declining revenues after selling off part of its UK business to concentrate on its Canadian operations.
The group said its half-year pre-tax profit increased to £1.9m for the six months ended April 30 compared to £884,000 during the same period a year earlier.
Revenue for the six months fell from £19.8m to £18.8m.
Travelzest sold its UK brands JMB Travel, Travelzest Holidays and Fair’s Fare and closed Tapestry Collections, which it said had reduced its risk profile.
It also owns a number of other UK brands including Captivating Cuba, Faraway Holidays Malaysia Experience, The Best of Morocco, The Cruise Professionals and VFB Holidays.
However it sees more growth potential in Canada where it owns itravel2000, which it said was performing well. Its Canadian businesses contributed £15m revenue, up 18% on 2011.
UK operations revenue for the same period declined 26.7% to £3.7 million. Looking ahead to the autumn, advanced bookings for the UK operations are down 42%, which the company said reflected weak demand and the sale or closure of its brands.
Travelzest said it was continuing to look for buyers and the independent directors said they were encouraged by the interest received.
"The Company and its advisers have narrowed the field to a small number of preferred parties, which includes the executive management team, and negotiations with these parties continue," it said.
"The interest received to date is subject to further due diligence and the Company will make further announcements as required."
Non-executive chairman Nigel Jenkins and group CEO Jonathan Carroll added in a joint statement: "The Group’s Canadian operations continue to perform well and our efforts to reduce and control costs over the long term have enabled us to significantly increase our profitability.
"We will continue to drive the Canadian operations and will build on the strong platform we have created which we believe will benefit the wider Group."
The Group’s current banking facilities expire in June 2013. If a sale of the Group has not been completed prior to autumn of 2012, the Group anticipates beginning discussions about new banking arrangements, it said.
By Linsey McNeill
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
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