RNS Number:9795F
World Travel Holdings PLC
9 January 2003
World Travel Holdings plc, the AIM listed travel distribution business, today
announces its interim trading results for the third quarter and nine months
ended 30 September 2002.
CHAIRMAN'S STATEMENT
Results
The steady improvement in margin which has been effected during the first half
of the current year has, unfortunately, been reversed in the quarter under
review. This is due mainly to a charge of approximately #150,000 in respect of
adjustments required to the accounts of Travac USA Inc following a review by UK
management of Travac's accounts following a change in its management.
As a result the margin has fallen to 6.09% (2001 - 8.87%) for the quarter and
9.42% (2001 - 8.64%) for the nine months. Absent the Travac adjustment, the
figures would have been 9.16% and 10.20%
The loss for the quarter is #0.397m compared with a loss for the same quarter
last year of #1.648m. The nine months show a loss of #0.490m compared with a
loss of #5.092m in 2001.
The Board expects that the Group will continue to be loss making for the
remainder of the year and the Group's cash position continues to be tight with
no net available unrestricted cash at the end of the period.
Corporate Activity
There was no corporate activity in the quarter but in November the Group
announced the acquisition of LeisureHunt.com Limited and the Select Line
companies. The Board is hopeful that these acquisitions will enable the growth
in gross margin to be resumed and insulate the Group from the continuing
downward pressure on margins on air travel-only products.
Following the accounting adjustments required at Travac, the Group's USA air
ticket distributor, the Board has reviewed this subsidiary's business and
concluded that the potential for future profitability in the current political
and economic climate in the United States does not warrant further investment.
The Group has thus made alternative arrangements to service its fulfillment of
orders from US customers of its consumer web-site Flights.com.
The business of Travac USA has been discontinued and in due course that company
will be liquidated. The corporate structure in the UK has also been simplified
and the Group's business in the UK is now conducted by the parent company and
two subsidiaries. As a consequence of this corporate restructuring, other Group
companies have been dissolved or liquidated.
Consumer Distribution
The Group now supplies consumer travel products in the UK through Deckchair,
Flights.com and LeisureHunt.com.
Trade Distribution
As stated earlier the Group has withdrawn from this market in the US whilst
Netfaresonline, the Group's Canadian-based net fare distributor is also trading
below expected levels. The Group will not commit further resources to this
aspect of its business.
Prospects
The Board is now reviewing the various aspects of its business to determine
which distribution channels offer a satisfactory opportunity for future
profitability in a highly competitive market in a world with an uncertain
political outlook.
For further information please contact:
World Travel Holdings plc 020 7456 1351
John Biles, Chairman
Consolidated Profit and Loss Account
3 months 3 months 9 months 9 months Year
ended 30 ended 30 ended 30 ended 30 ended 31
September September September September December
2002 2001 2002 2001 2001
Notes #'000 #'000 #'000 #'000 #'000
Gross travel sales 4 4,888 5,334 19,244 19,115 23,672
Turnover 4 298 473 1,812 1,653 2,097
Margin 6.09% 8.87% 9.42% 8.64% 8.86%
Selling and
distribution costs (166) (182) (468) (695) (1,352)
Administration costs (530) (1,930) (1,835) (5,991) (12,995)
(696) (2,112) (2,303) (6,786) (14,347)
Operating (loss) 5 (398) (1,639) (491) (5,033) (12,250)
Loss on disposal of
fixed assets - - - - (296)
(Loss) before
interest and taxation (398) (1,639) (491) (5,033) (12,546)
Finance charges (net) 1 (9) 1 (59) (70)
(Loss) on ordinary
activities before
taxation (397) (1,648) (490) (5,092) (12,616)
Taxation - - - - -
(Loss) on ordinary
activities after
taxation (397) (1,648) (490) (5,092) (12,616)
Basic loss per share 6 (0.22)p (2.980)p (0.28)p (8.94)p (19.21)p
Consolidated Balance Sheet
30 September
30 September 2001 30 June 31 December
2002 Restated 2002 2001
#'000 #'000 #'000 #'000
Fixed assets
Intangible assets - 8,210 - -
Tangible assets 390 890 433 509
390 9,100 433 509
Current assets
Debtors 778 2,410 1,527 2,074
Restricted cash 384 - 854 169
Cash at bank and in hand - 612 191 281
1,162 3,022 2,572 2,524
Creditors: amounts falling
due within one year (2,736) (5,815) (3,657) (3,751)
Net current assets/
(liabilities) (1,574) (2,793) (1,085) (1,227)
Total assets less current
liabilities (1,184) 6,307 (652) (718)
Creditors: amounts falling
due after more than one
year (1,956) - (1,992) (1,526)
Provisions for liabilities
and charges (838) - (934) (1,206)
Net (liabilities)/assets (3,978) 6,307 (3,578) (3,450)
Capital and reserves
Called up share capital 1,770 663 1,770 1,770
Share premium account 10,140 10,311 10,140 10,140
Shares to be issued 681 3,462 681 681
Capital reserve 4,758 5,078 4,758 5,401
Profit and loss account (21,387) (13,207) (20,987) (21,502)
Shareholders' funds (4,038) 6,307 (3,638) (3,510)
Minority interest 60 - 60 60
(3,978) 6,307 (3,578) (3,450)
Consolidated Cashflow Statement 3 months 9 months 9 months
ended ended Ended Year ended
30 30 September 30 September 31 December
September 2002 2001 2001
2002 #'000 #'000 #'000
#'000
Net cash outflow from
operating activities (143) (182) (1,539) (3,494)
Returns on investment and
servicing of finance
Interest received - 5 8 7
Interest paid (2) (6) (66) (77)
(2) (1) (58) (70)
Taxation - - - -
Capital expenditure and
financial investment
Purchase of tangible
fixed assets (25) (49) (176) (247)
Sale of tangible fixed
assets - 5 1,400 1,400
(25) (44) 1,224 1,153
Acquisitions and
disposals
Purchase of subsidiaries
undertakings - - (902) (1,665)
Net cash balances
acquired with subsidiary
undertaking - - 237 726
- - (665) (939)
Net cash outflow before
financing (170) (227) (1,038) (3,350)
Financing
Issue of shares (net of
costs) - - - 1,755
New long term loans - 307 - -
New finance leases - 15 - -
Capital element of long
term loan payments (22) (22) (898) (897)
Capital element of finance
lease payments (14) (19) (17) (3)
Financing (36) 281 (915) 855
Increase/(decrease) in cash
in the period (206) 54 (1,953) (2,495)
Notes to the financial statements
1. The interim financial statements have been prepared on the basis of
accounting policies set out in the Company's statutory financial
statements. Income from the sale of travel products and services is
recognised at the time of the booking.
2. The group is engaged in one class of business, the sale of travel products
and services. These activities are predominantly undertaken in the UK,
Canada and the USA
3. The September 2001 figures have been restated due to an alignment of
accounting policies at 31 December 2001.
4. Gross travel sales and turnover for the comparative periods are analysed
between continuing and discontinued operations and acquisitions as follows:
3 months 9 months Year
Ended ended ended
30-Sep 30-Sep 31-Dec
2001 2001 2001
#'000 #'000 #'000
Gross travel sales
Continuing 1,894 6,047 7,805
Acquisitions 3,440 13,068 15,867
5,334 19,115 23,672
Turnover
Continuing 144 486 555
Acquisitions 329 1,166 1,542
473 1,653 2,097
5. The operating loss for comparative periods analysed between continuing and
discontinued operations is as follows:-
3 months 9 months Year
Ended ended Ended
30-Sep 30-Sep 31-Dec
2001 2001 2001
#'000 #'000 #'000
Operating loss
Continuing (403) (3,688) (6,943)
Acquisitions (1,236) (1,345) (5,307)
(1,639) (5,033) (12,250)
6. The calculation of basic earnings per share is based on the loss on
ordinary activities before taxation in the financial period and the
weighted number of ordinary shares of World Travel Holdings plc in issue as
described in the Company's 2001 statutory accounts.
7. The financial information for the 3 month and the 9 month periods ended 30
September 2002 and 2001 have neither been audited nor reviewed by the
Group's auditors and do not constitute accounts within the meaning of
section 240 of the Companies Act 1985. The financial information for the
year ended 31 December 2001 is abridged from the Company's 2001 statutory
Report and Accounts. The auditors' report on those accounts was unqualified
and did not contain any statement under section 237 (2) or (3) of the
Companies Act 1985. These reports have been delivered to the Registrar of
Companies and are available from the company's registered office, 53 The
London Fruit & Wool Exchange, Brushfield Street, London E1 6EX.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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