CNG Travel’s first-half losses €13m higher than the same period last year

CNG Travel, the Kerry-based online reservations company, has seen its losses swell to nearly $22 million (€18.2m) in the first half of the year.

The figure is $13m (€10.8m) higher than the previous year, with the bulk of the losses incurred through an asset impairment charge and because of foreign currency translation.

Turnover for the year was strongly ahead, up 16% at $31.2m (€25.9m), boosted by its US business Tzell.

CNG, based in Kenmare, has pinned its hopes on the success of Tzell after selling its consumer travel business PlacestoStay.com to Fexco for $2.5m (€2m). CNG will get a further $1.1m (€910,000) if PlacestoStay meets certain profit targets over the next three years.

The company said it will focus on the on the expansion of Tzell in the US market through organic growth and acquisitions.

The first half of 2005 will be one to forget for CNG, which lost its chief executive and founder Finbarr Power after a row between the board.

Chairman Luke Mooney said: “The six months to 30 June 2005 have been a very difficult and disappointing period for CNG and its shareholders. The management changes announced close to the end of the period under review have had a positive effect on the group and this coupled with the recent sale of our loss making business to consumer division allow us to look forward with renewed optimism.”

The company said that following a takeover approach in July it has had informal talks with the potential acquirer but there was “no certainty that an offer will be forthcoming.”

Shares in CNG, which are traded on London’s Alternative Investment Market, closed down almost 9% yesterday at 31 pence. They have fallen 63% over the past year.