CNG report $2.6m losses

KENMARE-BASED CNG Travel Group yesterday signed a strategic partnership with Japanese conglomerate Sojitz and reported losses of $2.6m for 2003.

The value of shares in the online travel and technology business rose slightly on the news to £0.80, up 0.5p, but still trading well below their May 7 £1.03 launch price on the AIM of the London Stock Exchange.

CNG, who employ 55 in Kenmare, yesterday entered the Japanese market through the deal with Sojitz Corporation to distribute it’s hotel bedroom booking programme in the Japanese business travel market, the second largest in the world.

CNG, which bought out the 20% of the Tzell travel agency group in the US it did not own, is in line to record full-year profits when the enlarged group reports results for 2004.

CNG which has developed proprietary technology, Travel Lodging Connector (TLC), had turnover of $28.2m, EDITDA of $2.3m and operating profit before amortisation of $2.5m.

CNG chief executive Finbarr Power said the financial performance of the business in 2003 was robust despite the depression in the travel sector following the second Gulf War and SARS.

“Our US corporate travel business was particularly successful in gaining market share and its progress has continued to gain momentum in the current financial year. We now service in excess of 1,700 SME customers. The roll out of TLC in the USA has been particularly satisfying as we have deployed it to over 600 desktops since May 1 2004. We are very excited by the new opportunity in Japan that we also announced. We strongly believe in the strategy of growing both our B2B and B2C businesses and in our ability to consolidate our position in the global travel sector,” he added.

Company chairman Luke Mooney said the acquisition of Tzell has been extremely beneficial for CNG.

“As well as providing distribution of CNG’s hotel product to corporate travel agents focused on SMEs, Tzell also provided credibility in the US travel market, introductions to the larger corporate travel agents, access to air product and a reference site and testing ground for the TLC technology,” he added.