Lastminute shares hit by summer update

Online travel group lastminute.com saw its share price tumble today after confirming that trading had been “challenging” over the summer.

The company said underlying earnings for the fourth quarter were likely to be at the lower end of forecasts of between £25m (€36.3m) and £30m (€43.5m) set out in August. Shares fell by as much as 6% after today’s update.

It also gave details of how it would achieve “significant” cost savings across its businesses in the next financial year.

Lastminute said total cost savings would amount to £13m (€18.9m) in the 2005 financial year, helping underpin growth in earnings.

Chief executive Brent Hoberman said: “Despite continued challenging trading conditions in the industry during the summer quarter, we are pleased to see organic growth accelerate for the group.”