Travelzest posts record operating profits
Travelzest, the online travel group offering specialist travel programmes, has finished the year (to 31 October 2007) with record performance. (1/15/2008)
The group shared that its total transaction value grew 285% from ?44.1 million to ?169.9 million. Turnover has more than doubled from ?19.2 million to ?38.5 million, gross profit has grown 184% to ?20.6 million and underlying profit for the year before tax, goodwill amortisation and the impact of FRS20 (Share based payments) has increased by 256% from ?0.9 million to ?3.2 million.
Another important landmark achieved during 2007 was that Travelzest generated an operating profit in both the first half and the second half of the year, thanks to the balanced nature of our portfolio.
"Our ambition for 2007 was to acquire and start businesses that had the potential to grow quickly under our ownership, as well as improving the businesses we had already acquired. I am pleased that we have done this successfully," said Mark T J Molyneux, Chairman.
"Our specialist travel businesses predominantly serve older and more affluent customers who are less affected by economic uncertainty. The group also offers holidays to a broad range of destinations, and is not reliant on a single domestic market or season. Our largest business, itravel2000.com is based in Canada, which economically is currently enjoying prosperity and provides considerable potential. These factors, combined with the quality of proven management, let us look forward with confidence to 2008."
Travelzest´s strategic focus is on the two fastest growing sectors in the travel market; online agency and specialist experience based tour operations. Travelzest operates two business models; the agency business that relies on volume and cross selling, and the specialist tour operator business that delivers high margin on smaller volumes.
"Our business model is also lower risk than traditional tour operators, in that we have almost no fixed commitments for flights and beds. We have also diversified both the source and destination markets, and have an excellent balance between winter and summer seasons."