Tui Travel confirmed it intention to sell Salford-based Laterooms.com this year in a half year trading update today.
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Tui confirms intention to sell Laterooms this year
Tui Travel confirmed it intention to sell Salford-based Laterooms.com this year in a half year trading update today.
The European travel giant said it was ahead of schedule in the integration of Tui Travel and its German parent Tui AG which merged last December.
That saw the firm’s core operating businesses come together and a separate division created for its non-core interests, including the Hotelbeds Group and Specialist Group.
This led to speculation that the group of businesses would be sold off, although Tui denied this saying they were being run for growth.
However, last week it emerged Tui had hired Arma Partners, which previously advised Momondo Group on new financing, to find a buyer for Laterooms Group, the accommodation-only retailer.
In its half-year statement Tui said: “Other Businesses include Hotelbeds Group, which will be run as a standalone operation, and Specialist Group (formerly Specialist & Activity).
“The LateRooms Group will be reported as a discontinued operation as it is held for sale. All head office functions are being merged and we will start reporting against our corporate streamlining target in this segment.”
The statement added: “We have decided to exit the LateRooms Group.
“The LateRooms Group provides accommodation services to final customers via the online hotel portals LateRooms, AsiaRooms and MalaPronta.
“LateRooms primarily operates in the UK, AsiaRooms operates in Asia and MalaPronta in Brazil.
“Exit will be effected by selling LateRooms and closing down AsiaRooms. Implementation is expected in the current financial year.
“The LateRooms Group available for sale is therefore accounted for as discontinued operations as of 31 March 2015.
“The result from these discontinued operations is carried separately from the income and expenses for continuing operations in the consolidated income statement.”
In the 2014/15 half year LateRooms generated turnover of €31 million, underlying EBITA of €-9 million and an EAT of €-19 million including €13 million for the closure of AsiaRooms.
