eyefortravel.com - Travel Distribution News, Events and Analysis: "According to the Guardian, lastminute.com�s attempt to persuade investors that all is well with the independent, online travel and leisure group fell on deaf ears yesterday. (8/10/2004)
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The Guardian report says that lastminute.com�s stock continued sinking despite a positive trading update four days after its results.
The group�s shares apparently plummeted last Thursday after third-quarter figures, as traders worried about trading over summer when the group makes most of its profits.
Despite lastminute.com, last week having reported solid growth for its third quarter, 2004, an announcement released at virtually the same time caused some surprise within the travel industry. The group stated that it planned to reduce costs by 10% during its 2005 financial year. To accomplish this, it would need to close four overseas offices and make 350 staff members redundant.
It did not at the time of the announcement give its reasons for the cost reductions, but said that it would release further details in late September. This disquieting move suggested that perhaps online travel and leisure group�s financial standing was not as strong as initially communicated.
According to the Guardian, yesterday lastminute gave guidance about its profitability for the first time, saying it expects earnings before charges of �25m to �30m in the fourth quarter, making �26.7m to �31.7m for the year. It forecast earnings before charges of �55m to �65m for the year to end September 2005, helped by savings, including the axing of a percentage of its workers.
The Guardian reports stock is continuing to slide, closing down 4p at 94.5p, wiping �13.4m off the value of the business. About �120m has been lost over the p"
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