****** CORRECTION ******
The issuer World Travel Holdings wishes to advise that the previous announcement sent this
morning, 'Interim Results for the second quarter and six months ended 30 June 2002',
contained an error in the second line of paragraph 3. The loss shown for the first half
year should be �0.093m and not �0.93m as previously reported. Please find below the
corrected version.
====================
World Travel Holdings plc, the AIM listed travel distribution business, today announces
its interim trading results for the second quarter and six months ended 30 June 2002.
CHAIRMAN'S STATEMENT
Results
I am delighted to be able to report the first quarterly profit achieved by the Group
albeit in what will continue to be the best quarter of each year. Further considerable
progress has been made in the reduction of the Group's costs and the simplification of its
administrative and technical structure whilst maintaining revenue and growing margin.
Turnover, represented by commissions and booking fees, has increased slightly in the
quarter when compared to the same period in 2001 on gross sales which have slightly
reduced. This reflects progress made in improving margins, which increased to 9.29% in
the quarter from 8.8% in Q2 2001, and, given the elimination of all marketing spend is, I
believe, a very creditable performance.
The profit for the quarter is �0.057m compared with a loss for the same quarter last year
of �1.764m. The first half year shows a loss of �0.093m compared with a loss of �3.443m
in 2001. Because of the alignment of accounting policies within the Group, as indicated at
the time of our first quarter results, the interim figures for 2001 have been re-stated.
Because of seasonal variations, the Board expects that the Group will make a modest loss
in the second six months of the year. The board is hopeful, based on current projections,
that 2003 will be profitable as a whole although the Group is always expected to be loss
making in the last quarter of each year. The Group's cash position continues to be tight.
The �300,000 loan from Culver Holdings (our 7.35% shareholder) received during the quarter
helped, but the attitude of banks and credit card processors towards the travel industry
continues to be difficult, although it has eased somewhat in the US. At the end of the
quarter the Group had �0.9m of restricted cash in its US operations compared with �1.1m at
the end of March, the bulk of which represents the float held by the credit card companies
in respect of tickets, for many of which the Group had already paid the airline concerned.
The move to a common technology platform continues and will have been completed in respect
of UK operations by the end of August.
Corporate Activity
There has again been no successful corporate activity in the quarter. A number of
opportunities have been examined but none has come to fruition. The board continues to
seek out opportunities and to review those that arise and will take advantage of
opportunities to exploit the Group's distribution abilities by adding further travel
products which will produce revenue without a commensurate increase in cost.
Consumer Distribution
Deckchair, one of the Group's two distinct web-based consumer travel businesses, which is
focused on the UK leisure market has had a disappointing quarter largely because the
technical effort applied to moving to a common platform led to a deterioration in
performance, and also because of the absence of marketing expenditure. With its move to
the new platform in mid to late August it is expected that performance from this site will
start to improve. The performance of flights.com which is aimed at the global discount
fares market is improving following the difficult period as the site moved to a different
Global Distribution Service for the supply of airline data to which reference was made in
the first quarter's statement.
Trade Distribution
Travac, the Group's US-based net fare distributor with offices in New York and Orlando
continues to progress although June was significantly quieter than was expected.
Netfaresonline, the Group's Canadian-based net fare distributor has been affected by the
withdrawal of certain Air Canada business from its service. Management in Canada has been
strengthened and other opportunities to grow the business are being examined.
Little progress has been made in penetrating the UK market for trade distribution although
further efforts are to be made with the new technology now becoming available.
Prospects
The Directors believe that the Group is now well on the way towards sustained
profitability. There is enormous potential for substantially increasing sales through an
efficient system with little increase in cost.
The Board is pleased that its hopes for profitability have been brought to fruition and
with the indications of profitability for 2003.
For further information please contact:
World Travel Holdings plc 020 7456 1351
John Biles, Chairman
Consolidated Profit and Loss Account
3 months 3 months 6 months 6 months Year
ended 30 ended 30 ended 30 ended 30 ended 31
June 2002 June 2001 June 2002 June 2001 December
Restated Restated 2001
Notes �'000 �'000 �'000 �'000 �'000
Gross travel sales
4 7,765 8,090 14,356 13,781 23,672
Turnover 4 722 712 1,515 1,180 2,097
9.29% 8.80% 10.55% 8.56% 8.86%
Selling and distribution costs
5 (121) (238) (302) (513) (1,352)
Administration costs 5 (544) (2,238) (1,307) (4,061) (12,995)
(665) (2,476) (1,609) (4,574) (14,347)
Operating profit/ (loss)
6 57 (1,764) (94) (3,394) (12,250)
Loss on disposal of fixed assets
- - - - (296)
Profit/(loss) before interest and
taxation
57 (1,764) (94) (3,394) (12,546)
Finance charges (net)
- - 1 (49) (70)
Profit/(loss) on ordinary
activities before taxation
57 (1,764) (93) (3,443) (12,616)
Taxation - - - - -
Profit/(loss) on ordinary
activities after taxation 57 (1,764) (93) (3,443) (12,616)
Basic loss per share
7 0.06p (3.09)p (0.11)p (6.03)p (19.21)p
Consolidated Balance Sheet
30 June 30 June 2001 31 March 31
2002 Restated 2002 December
2001
�'000 �'000 �'000 �'000
Fixed assets
Intangible assets - 8,444 - -
Tangible assets 433 2,537 484 509
433 10,981 484 509
Current assets
Debtors 1,527 2,425 1,513 2,074
Restricted cash 854 - 1,100 169
Cash at bank and in hand
191 509 279 281
2,572 2,934 2,892 2,524
Creditors: amounts falling due within one year
(3,657) (6,120) (4,308) (3,751)
Net current assets/(liabilities)
(1,085) (3,186) (1,416) (1,227)
Total assets less current liabilities
(652) 7,795 (932) (718)
Creditors: amounts falling due after more than
one year (1,992) (1,522) (1,526)
(887)
Provisions for liabilities and charges
(934) - (1,149) (1,206)
Net (liabilities)/assets (3,578) 6,908 (3,603) (3,450)
Capital and reserves
Called up share capital 1,770 663 1,770 1,770
Share premium account 10,140 7,382 10,140 10,140
Shares to be issued 681 6,390 681 681
Capital reserve 4,758 4,800 4,763 5,401
Profit and loss account (20,987) (12,327) (21,017) (21,502)
Shareholders' funds 3,638 6,908 (3,663) (3,510)
Minority interest 60 - 60 60
(3,578) 6,908 (3,603) (3,450)
Consolidated Cashflow Statement
Six Three Six Year
months months months ended
ended ended ended 31
30 June 30 June 30 June December
2002 2002 2001 2001
�'000 �'000 �'000 �'000
Net cash outflow from operating activities
(38) (113) (1,329) (3,494)
Returns on investment and servicing of finance
Interest received 5 2 8 7
Interest paid (4) (2) (57) (77)
1 (0) (49) (70)
Taxation - - - -
Capital expenditure and financial investment
Purchase of tangible fixed assets
(24) (23) (70) (247)
Sale of tangible fixed assets
5 5 - 1,400
(19) (18) (70) 1,153
Acquisitions and disposals
Purchase of subsidiaries undertakings
- - (902) (1,676)
Net cash balances acquired with subsidiary
undertaking - - 237 726
- - 665 (939)
Net cash outflow before financing
(56) (131) (2,118) (3,350)
Financing
Issue of shares (net of costs)
- - - 1,755
New long term loans 307 307 - -
New finance leases 15 15 - -
Capital element of long term loan payments
- - (7) (897)
Capital element of finance lease payments
(5) (3) (17) (3)
Financing 317 319 (24) 855
Increase/(decrease) in cash in the period
261 188 (2,137) (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 June 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 6 months Year
Ended ended ended
30-Jun 30-Jun 31-Dec
2001 2001 2001
�'000 �'000 �'000
Gross travel sales
Continuing 2,495 4,153 7,805
Acquisitions 5,595 9,628 15,867
Discontinued - - -
8,090 13,781 23,672
Turnover
Continuing 188 342 555
Acquisitions 524 838 1,542
Discontinued - - -
712 1,180 2,097
5.Costs of selling and distribution and administrative costs for the comparative
periods analysed between continuing and discontinued operations are as follows:
3 months 6 months Year
ended ended ended
30-Jun 30-Jun 31-Dec
2001 2001 2001
�'000 �'000 �'000
Selling and distribution costs
Continuing 238 483 952
Acquisitions - 30 400
Discontinued - - -
238 513 1,352
Administrative costs
Continuing 1,683 3,153 6,495
Acquisitions 555 908 6,500
Discontinued - - -
2,238 4,061 12,995
Notes to the financial statements (continued)
6.The operating loss for comparative periods analysed between continuing and
discontinued operations is as follows:-
3 months 6 months Year
ended ended ended
30-Jun 30-Jun 31-Dec
2001 2001 2001
�'000 �'000 �'000
Operating loss
Continuing (1,734) (3,285) (6,943)
Acquisitions (30) (109) (5,307)
Discontinued - - -
(1,764) (3,394) (12,250)
7.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.
8.The financial information for the 3 month and the 6 month periods ended 30 June 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.
ENDS
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