CNG Travel shares hit by profits warning

SHARES in CNG Travel, the online bookings company, lost nearly a third of their value yesterday after a profits warning.

In a trading update, the Kenmare-based company said it was selling off Places To Stay, an online travel website, that it bought last year for €10 million.

The company said it was exiting the consumer travel market to focus on the corporate sector.

Shares in CNG, which is listed on London’s Alternative Investment Market (AIM), lost 14 pence in trading to end the day at 32p, valuing the company at £18.1m (€26.8m). The value of the company has fallen by two-thirds since the flotation last year.

The company said in a statement that Tzell, its travel business in the United States, continues to perform well and broadly in line with market expectations.

CNG said that usage of its Travel Lodging Connector (TLC), which allows travel agents access to millions of hotels worldwide, was lower than expected with bookings worth a total of €810,000 being processed.

It said although the performance of TLC is disappointing in the short term, the longer term profit picture was positive.