Loyaltybuild put on the market

ONE MORE THINGCLARE-BASED MARKETING company Loyaltybuild has been put up for sale by its backers with a price tag of about €15 million.

Based in Ennis, Loyaltybuild was founded in 1999 by local entrepreneur Dominic Considine. Its other shareholders are financier Dómhnal Slattery and businessman Seán Lyne. Mr Slattery and Mr Lyne, who co-own the Clare People newspaper, hold about 30 per cent of the shares. Mr Considine holds the balance.

Loyaltybuild works with retailers, utility companies and financial services groups to create and manage loyalty programmes, particularly around hotel breaks. SuperValu and Axa are high-profile clients.

According to its website, more than 2.2 million people in Europe have availed of its reward breaks, generating over €1.5 billion for its partners.

In the past five years the company is said to have filled more than six million hotel rooms and is thought to be the market leader in Ireland, Sweden and Norway.

Hotel partners include JurysDoyle, Radisson SAS, Quality, Best Western and Ramada.

Raglan Capital is believed to have been engaged to advise on the sale.

An information memorandum shows that Loyaltybuild is on target to achieve earnings before interest, tax, depreciation and amortisation (Ebitda) of €1.7 million from turnover of €8.6 million this year.

It is projecting Ebitda of €7.6 million in 2009 from turnover of €18 million and has an eye on expansion into new markets.

These are stunning projections, but beg one question: if Loyaltybuild is set for such stellar growth in 2009, why are they selling now?