Smurfit steps down as director of travel group

PAPER and packaging tycoon Michael Smurfit has stepped down as a director of the struggling CNG Travel Group.

Dr Smurfit became a non-executive of the Kenmare-based company just before its flotation in mid-2004.

He will be replaced on the board by his son, Michael. Dr Smurfit remains a major shareholder in the company, with a stake of just under 5%.

He invested €4 million of his estimated €300m fortune in the company, though the value of his stake has fallen because of the collapse in CNG’s share price.

The company said yesterday that, after a difficult start to 2005, trading had improved towards the end of the year and it broke even after €3 million in losses in the first half.

“We have ended a very difficult year on a positive note. The disposal of the loss-making leisure division was a turning point and this, coupled with a major cost reduction programme, has put the group in a much sounder condition,” new chief executive PJ King said.

CNG, which develops online booking systems for the travel industry, ditched its previous chief executive and founder, Finbarr Power, after a row over the future direction of the company.

It has since sold its loss-making consumer travel business to focus on its main US subsidiary, Tzell.

Shares in CNG Travel, which are traded on London’s Alternative Investment market, gained nearly 16% yesterday to close up 22 pence (32 cent).

They have lost 80% of their value in the past year.