Lowcosttravel Group Ltd is delighted to report its financial results for the year ended 31st October 2008.
* Total transaction value increased by 44% to £50m and gross profit margins were sustained at 13%.
* Net profit before tax increased by 48%.
* During a tough trading year and following substantial investment in new technology, net profit margins were increased.
Total Transaction Value
2008 – £ 50,732,486
2007 – £ 35,341,446
2008 – £ 6,484,040
2007 – £ 4,664,426
Gross profit margin
2008 – 13%
2007 – 13%
Pre Tax Profit
2008 – £ 457,329
2007 – £ 308,462
Paul Evans, chief executive, said: “Despite increased competition, the economic downturn and the depreciation of sterling, our business is trading very strongly and we are experiencing record sales every week.
“Currently we are seeing 186% growth in like for like sales and 220% at the group level (including Resorthoppa). Resorthoppa sales are up 25% year on year since our merger. Our trade business and partnerships continue to go from strength to strength and our direct consumer business is recording significant growth levels, despite the economic doom and gloom reported every day.
“Average holiday prices are up 3% year on year and our effective currency hedging means we have been able to increase our margins, despite intense price competition. Our investment in our super fast and advanced technology platform last summer has made a huge difference to our customer conversion and retention. We believe our brand will stand us in good stead in these difficult economic times and we look forward to continued growth”.
Jon Richards, lowcosttravelgroup chairman added: “We are delighted with last year‟s results and growth in our current trading is accelerating. Last year we grew sales by 44% and profits by 48%, despite increased competition and material adverse movements in our major trading currencies.
“This is testament to the quality of our excellent management team at lowcosttravelgroup who have gained major market share, held our margins and managed our foreign currency exposure effectively.”