Shares in E-bookers slumped 17 per cent this morning after annual profits at the online travel agency fell short of market expectations despite a 90 per cent jump in gross sales and a strong start to 2004.
The mid- and long-haul travel specialist said bookings picked up in the last quarter of 2003 after a challenging start to the year with the Iraq war, SARS epidemic and a very hot European summer keeping travellers at home.
The pickup continued into 2004, with Internet bookings up 69 per cent in the two-and-a-half months to March 18th - its highest organic growth rate so far - and showed no evidence of slowing down in the wake of the Madrid train bombings earlier this month, Chief Financial Officer Mr Nigel Addison Smith said.
"It seems to have had absolutely no effect on the European travel industry," he said.
However, the stock fell 17 per cent to 330-1/4 pence this morning, valuing the firm at £224 million sterling.
Ebookers derives more than 80 per cent of its revenue from bookings to destinations such as Australia, the United States, South Africa, New Zealand and Canada.
The company, with websites in 12 European countries, reported adjusted pre-tax profit of £1.3 million ($2.38 million) for the year to December 31th, below market expectations of around £2.4 million. Adjusted pre-tax profit is before goodwill amortisation and stock compensation costs.
Pre-tax losses widened to £14.9 million from £12.3 million in 2002, largely due to exceptional costs relating to the acquisition and integration of independent travel firm Travelbag. Gross sales for the year jumped to £521 million.