UK and Canadian holiday company Travelzest has reported a record underlying operating profit for the year to October 31, up 11% to £6.1 million.
Its losses before tax grew to £12.9 million but was partly down to a decision to fully amortise the remaining goodwill of £11.3m relating to the group’s UK businesses.
“This decision was taken after reviewing the performance of the UK operations since they were acquired and the ability of the UK operations to generate improved returns in the near future,” said the company’s statement.
Revenue rose by 14% to £43.8 million and total transaction value grew 15% to £217.6 million.
Chairman Mark Molyneux the group was now in refinancing talks with several UK and Canadian banks.
He said the group was cautiously optimistic about the next 12 months.
“The UK economic climate is likely to remain difficult, with consumer confidence dented by public sector expenditure cuts,” he said.
"However, we are more positive about the Canadian economy, which accounts for a substantial portion of our North American activity."
He said the recent restructuring of the group’s operations had already begun to yield benefits.
Travelzest has consolidated nine reservation systems to four, five accounting systems to one, and 10 offices to six.
"The management of the organisation has shifted from a brand-based to predominately functionally-based structure with common marketing, purchasing, accounting and human resource practices," said Molyneux.
"These actions will enable us to develop and manage new strategies that will allow us to grow the group substantially."
By Bev Fearis
