LONDON, Jan. 13, 2004 (PRIMEZONE) -- lastminute.com plc, the leading online provider of travel and leisure solutions, today announces the purchase of a specialist leading UK hotel booking agency, First Option Hotel Reservations Ltd (First Option) for 12.1 million.
The Group also announces a trading update for the period to 31 December 2003.
Acquisition of First Option
Highlights:
-- further broadens the UK hotel database providing access to a much
wider range of UK properties from B&Bs to 5 star hotels
-- increases the combined Group's hotel bookings to over 4 million
room nights for 2003
-- provides physical presence at 21 locations principally at mainline
UK railway stations and airports which are intended to be re-
branded as lastminute.com. This will enhance the Group's brand
awareness and provide significant new merchandising opportunities
including the facility to cross-sell car hire, theatre and
restaurants from those direct point-of-sale areas
-- creates an opportunity to transform the 21 retail outlets to
24/7 selling opportunities using innovative technology
solutions for the unmanned periods
-- creates an opportunity for First Option's corporate customers to
gain access to the wider range of lastminute.com products
-- increases the hotel category TTV (Total Transaction Value) by some
60 million annually
-- earnings enhancing in the year of acquisition
First Option is a profitable company which was established in 1994. The last published audited accounts of the First Option Group for the year to March 2003 show turnover (defined as commission or management/booking fees) of 7.5 million and profit before tax of 0.7 million. Net liabilities at that date amounted to 0.9 million. First Option is a UK based operation with a staff of approximately 200 people, mainly based at the call centre in Stockport and at the retail outlets throughout the UK.
The consideration will be satisfied by 10.5 million in cash and the issue of 752,353 shares in lastminute.com plc. The consideration shares issued to Sheetal Kapoor, the owner, are the subject of a lock-up period for up to 12 months. Sheetal will remain with the business via a part-time consultancy agreement for a period of 6 months to ensure the integration into lastminute.com is successfully completed.
Application has been made to the UK Listing Authority and the London Stock Exchange for all new shares to be admitted to the Official List and to trading on the London Stock Exchange's market for listed securities ("Admission"). It is expected that Admission will become effective from 8am on 16 January 2004 and dealings will commence at that time.
Commenting on the transaction, Brent Hoberman, Chief Executive Officer of lastminute.com said:
"The acquisition of First Option creates an opportunity for further growth in a category where the margins are good and the returns are sustainable. Hotels is a product category which has seen great adoption by consumers online. The presence at principal UK railway stations and airports will add significantly to the overall reach of lastminute.com and continues the delivery of our mission to make lastminute.com a part of people's daily lives. This acquisition again accelerates our growth in the UK, our largest market and moves us to a leading position in the online hotels category."
Sheetal Kapoor, Managing Director and Founder of First Option added:
"I am delighted that First Option has been acquired by a parent that will help the business to continue to grow as the synergies of the businesses for both corporate and retail customers are compelling. I look forward to continue working with the Group to assist with the integration process of First Option into lastminute.com. I am sure that First Option will add materially to the overall lastminute.com hotel portfolio."
Trading update
Trading in the First Quarter, the seasonally weakest quarter, was strong with TTV by departure basis being ahead of expectations especially in the area of flights. All other financial metrics are broadly in line with expectations taking into account a higher level of TTV.
Notes to editors:
About lastminute.com
lastminute.com operates directly in thirteen European countries and participates in three international joint ventures, providing travel and leisure inspirations and solutions to customers. At 30 September 2003 lastminute.com had over 7.7 million subscribers to its award winning weekly newsletter and had established over 15,500 supplier relationships. The business is based on the idea of matching supply and demand. lastminute.com offers consumers opportunities to acquire airline tickets, hotel rooms, holidays (both self packaged and third party packages), car hire, entertainment tickets, restaurant reservations and food delivery, speciality services, gifts and auctions. More information available at www.lastminute.com/ir
About First Option
First Option is one of the UK's leading accommodation and conference reservations companies. It specialises in late availability bookings through its network of retail desks throughout UK train stations and airports and also in the management solutions of corporate and conference bookings through its call centre based in Stockport.
The retail desks provide travellers with a full range of hotels and other types of accommodation, as well as complementary travel and related services. Reservations are made in person, by phone, fax or e-mail, but 90% are for same-day arrival at standby rates. Desk locations include Edinburgh, Glasgow and Manchester Airports and Railway stations in London (including Kings Cross, Euston, Victoria), Gatwick, York, Birmingham, Edinburgh and Glasgow.
Through First Option's Corporate team, it is able to create a tailored Hotel Booking Service for its Corporate and Government clients. It has a team of highly experienced consultants who manage these relationships directly via corporate extranet solutions designed and hosted by First Option and also through phone, fax, email and other online channels. Corporate customers vary from blue chip corporate and government organisations to small owner/managed businesses.
More information available at www.first-option.co.uk
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