The Co-operative Travel has turned a £2.1 million loss in 2007 into profit of £5.3 million in 2008.
In the 52 weeks ended January 10, it achieved a 20.7% rise in turnover, up from £217 million to £262 million.
The group said online sales have grown significantly since the
introduction of a new website in December, with an increase of
more than 250% in the final weeks of January compared to 2008.
It said a re-branding and refurbishment, plus the closure of a number of loss-making branches, also had a big impact on the figures.
Managing director Mike Greenacre said he was delighted with the results, but added: “However, I would sound a note of caution, as travel sales since the turn of the year have suffered as much as many industries as a result of the global credit crunch.
“In addition, the strength of the Euro versus the Pound has had a negative impact on holidays within the Eurozone, whilst job insecurity has meant that many holidaymakers are waiting far longer than before to book.
“I am, however, confident that sales will pick up as the summer holiday period approaches, and that The Co-operative Travel will enjoy another very profitable year.
“Furthermore, the launch of our tour operation will provide our customers with a quality product that I know will prove extremely popular for many years to come.
“We are extremely positive about our progress, which is in no small part due to our fantastic employees, who remain incredibly professional and loyal to this business. I would like to extend my personal thanks to everyone who has helped to ensure the success of The Co-operative Travel.”
The Co-operative Group as a whole, which includes food and financial services, increased operating profit before significant items by 11% to £393 million.
It reported record results, with gross sales including VAT up 15%, breaking through the £10 billion barrier.
Chief executive Peter Marks said: “At a time when the economy is struggling and many business models are coming under intense pressure we truly believe that The Co-operative Group is coming into its own.â€
By Bev Fearis
