USIT make loss of €1.8m

STUDENT travel company USIT swung into the red last year following a restructuring of the business.

Accounts for USIT Ireland, just filed at the Companies Registration Office, for the year to end October 2004, show pre-tax losses amounted to €1.8 million from a profit of €192,400 in 2003.

The company said the losses followed a €1.2m restructuring that saw several travel agent branches closed and a number of hostels sold off.

USIT, famed for its J1 travel deals, also reduced its workforce by nearly 200.

“The branch network has been consolidated from a total of 22 down to six permanent locations, eliminating all loss-making branches. All remaining locations are profitable and are strategically located in the main cities in Ireland,” the company said.

Turnover for the year was down from €14.1m to €11.7 million, a 17% decline, reflecting the branch closures. The accounts show that sales from its travel shops declined to €6.9m and revenues from its hostels fell to €4.7m.

Retained losses at the year end stood at €8.6m, while equity shareholders’ funds were €11m.

The company said it plans to expand outside the student market by launching a new travel website aimed at long-haul and independent travellers.

USIT was once the largest student travel company group in the world but the tourism industry downturn after 2001 hit the company hard.

In 2002 it went bust, owing creditors some €100 million.

The business was eventually rescued by former Woodchester bankers Michael Tunney and David Andrews.