p20 pink oct24 21/10/08 18:47 Page 20
news city & finance
ttglive.com
Vantage buys
City nerves eased
Travel Impact
INTERNATIONAL event management company
by Holidaybreak
Vantage Point has acquired incentive travel
and conference specialist Travel Impact for an
Mark Lewis.
bank about the conditions on which
undisclosed sum. HOLIDAYBREAK’S shares rallied earlier the loan is given. However, by
Vantage Point has operated in the meetings this week after directors moved to Monday morning the City was
and incentive industry since 1996. It also owns a reassure a nervous market. assured the covenants were more
specialist ski brand, The Corporate Ski Company. The adventure operator’s stock had secure than previously thought.
Travel Impact was founded in 1987 and its clients fallen sharply last week on rumours The reassurance came several
include Nikon and Cisco Systems. the company could be in danger of months after the firm released a
John Denham, managing director of Vantage breaching its banking covenants if statement in which chief executive
Point, said Travel Impact would add £2m to 2009 proved more challenging than Carl Michel Carl Michel said the group was
Vantage Point’s turnover, doubling the combined expected and earnings fell sharply. “prudently financed” and would be
company’s sales to £4m. Denham aims to achieve But analysts were persuaded that the firm’s able to consider more acquisitions.
£5m within the next 18 months. £160m debt, generated while aggressively The profitability of Holidaybreak’s city-break
“Given the current economic conditions we expanding its educational division in 2007, would business is considered potentially vulnerable to
don’t expect a lot of growth to occur over the not put the firm at risk even if its earnings fell a sustained downturn, but the firm claims its
next year, which is why we’re looking to 2010 to by between 25-30%. educational business is virtually recession-proof.
achieve our growth targets,” he said. Shares fell 17% and 23% on Thursday and Fri- Sahill Shan, analyst at Brewin Dolphin, said:
“Travel Impact has been going for 21 years and day following the speculation. A covenant is an “There are a number of factors which seem to be
has a solid client base, so even though the meet- agreement between a company and its lending weighing on its stock.”
ings and incentive sector may experience a slow-
down, ultimately we will be in a better position.”
The combined company will take on Travel
Impact’s six employees, bringing the total staff
to 14, who will be based in Vantage Point’s
Wimbledon office. The new company will keep
the Travel Impact brand name, but will be
managed under the Vantage Point Group.
Midlands Co-op
sales up to £142m
MIDLANDS Co-op’s travel division has reported
sales of £142m for the six months to this August,
up 5% on the year before. DELTA VIEWS: Agents at Edinburgh airport get a sneak preview of Travel 2’s new
The society as a whole reported sales of America 2009 brochure, which features a partnership with Delta Air Lines. On hand
£456m in its half-year results, a 7% increase on are, from left: Colin Clark, Delta; Tom Sneddon, Travel 2; Jane Dick, Caledonia Travel;
last year, and its retail division achieved sales of and Karyn Holdsworth, duty manager for Delta at Edinburgh airport.
£286m, up from £266m last year.
It said its travel results reflected an increase
of 5% in the first half year and consolidation Delta loses $26m during summer
within its business travel arm.
It said key changes during the year had been DELTA reported a pre-tax loss of $26m for the exchange losses and $25m in charges related to
the transfer of foreign exchange inhouse from an third quarter of the year, compared with a pre- fuel hedges. During the July-September quarter,
external provider, as well as the introduction of tax profit of $363m for the same period in 2007. Delta hedged 51% of its fuel consumption.
more foreign exchange booths into retail shops. The Atlanta-based carrier blamed high fuel The overall losses were cushioned somewhat
Refurbishments were taking place in retail prices, noting that operating expenses increased by a 9%, or $500m, rise in operating revenue.
shops, including Lutterworth, Redditch and $814m, or 17%, compared with last year, reflect- Delta chief executive Richard Anderson
Sutton Coldfield. The company has also invested ing a rise of more than $800m in fuel costs. acknowledged “turbulent times and an uncertain
in store refurbishments and opened a travel unit Non-operating expenses also increased in the demand environment”, but was buoyed by steep
in a supermarket in Northamptonshire. quarter. The $90m hike included $26m in foreign falls in the price of fuel and solid cash reserves.
20 24.10.2008
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