Travelzest profits up by nearly 20 per cent

Online travel operator Travelzest saw its pre-tax profits rise by £600,000 for the year ended 31 October 2008.

This was an increase of 19 per cent over the previous year – up from £3.2 million to £3.8 million.

The profits were achieved in spite of £3.6 million in costs related to an aborted takeover of the company and the closing of Holiday Express international operations, with Internet domain names being licensed out.

Total transaction values rose by seven per cent, up to £181.9 million, and revenues increased by 15 per cent, to £44.3 million.

Operating profit for the year was £5.1 million, as compare with £3.8 million for the previous year, before amortisation and items that were disclosed separately.

Travelzest, which closed in-house operations of Holiday Express during the year, said that its UK specialist tour operators showed “encouraging performance” and that there was continued strong performance by itravel2000.com, its Canadian online travel retailer.

During the year, Travelzest acquired a second Canada-based business, The Cruise Professionals.

Last November, an unsolicited takeover was abandoned due to uncertainties in financial markets.

Canada now accounts for 60 per cent of the group’s business, providing a buffer against economic uncertainties in the UK and currency fluctuations in Europe.

www.travelzestplc.com