Lastminute forecasts improved earnings

Shares in online travel group lastminute.com continued to fall today despite the issue of guidance highlighting an improving trend for earnings.

The company, which suffered a heavy decline in its share price following third-quarter results last week, said it expected underlying earnings in the full year of between £26.7m (€40m) and £31.7m (€47.6m). That compares with £15m (€22.5m) in the previous year and should improve to as much as £65m (€97.7m) in 2005.

Lastminute said the announcement clarified its position for investors, although it was met with another fall for shares – off almost 5% to 94p.

Shareholders have driven the stock lower amid concerns about wider bottom-line losses in the third quarter and anxiety over the wider travel market, which the company has described as “challenging”.

Shares are way off their peak seen during the dotcom boom of 560p and the 313.75p achieved last year.

Announcing third quarter figures on Thursday, lastminute said total transaction values in the three months to June 30 increased 78.2% to £268.9m (€403.9m) with underlying earnings up slightly to £4.3m (€6.5m).

Lastminute said returns from July showed it was on course to generate transaction values of around £400m (€600.9m) for the fourth quarter – traditionally its busiest trading period.

The company provides travel and leisure offers directly in 13 European countries and also has three international joint ventures. It currently employs around 2,400 people.