Western & Oriental to raise cash for acquisitions
Specialist luxury travel group Western & Oriental intends to raise approximately £14.4 million, before expenses, by way of two share placings to fund acquisitions.
It has identified six companies which meet its acquisition criteria, with an approximate combined aggregate turnover of £34.2 million and an average historic net profit margin approaching 10%.
“Whilst terms have not been agreed with any of the present owners, a dialogue has commenced with each with a view to acquisition,” it said in a statement today.
The group, which was listed on AIM in March 2006, has since completed seven acquisitions for an aggregate consideration of up to £5.35 million in cash and shares.
“These acquisitions of established profitable travel businesses have diversified the company’s range of product offering and increased cross-selling opportunities through its enlarged customer base,” it said.
“There remain significant opportunities for further acquisitions in the luxury travel sector to further enhance the company’s buy and build strategy.”
It also announced its interim results for the six months ended March 31.
It reported that turnover increased by 307% to £16.4 million and an overall loss of £0.5 million is “in line with management expectations”.
Chairman David Howell said: “The businesses we have acquired since float are all performing well and integration has gone according to plan.
“Trading remains in line with our expectations and we are confident of delivering a material year-on-year improvement over the full year’’.
By Bev Fearis
Bev
Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.
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