Upmarket market travel operator group Travelzest posted a mixed set of results after a solid performance at its Canadian operations while it slimmed down its UK arm amid tough conditions.
The group, which specialises in travel products and niche travel programmes to holidaymakers in Canada and the UK, said pre-tax profit increased to £1.9m for the six months ended 30 April 2012 compared to £884,000 a year earlier. Revenue for the period fell to £18.8m compared to £19.8m.
Travelzest said it continues to perform well in Canada and actions to lower operating costs and reduce the group's presence in the UK have improved profitability despite declining revenues.
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It has significantly reduced its UK activities with the sale of JMB Travel, Travelzest Holidays and Fair's Fare and the closure of Tapestry Collections.
However Travelzest sees potential for rapid growth at its Canadian itravel2000 and has increased the range and type of luxury holidays at The Cruise Professionals.
Looking ahead the group noted: "In particular itravel2000 has performed well in the first half of the financial year. These operations continue to excel but face pressure on margins due to price competition."
"We remain confident about the prospects for the Canadian operations and believe that is where we are going to drive future growth. With this in mind, we will continue to develop the brands we have in Canada."
CJ
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