TRAVELSHOP LIMITED 2000-07-28 ASX-SIGNAL-G
HOMEX - Melbourne
+++++++++++++++++++++++++
The Directors of Travelshop Limited (Travelshop) announce that Group
Revenue for the financial year ended 30 June, 2000 was $31.9 million
compared to the projected revenue announced by the Directors on 7
March, 2000 of $38 million. The variance of $6.1 million is
attributed by the Directors to a slower growth in actual internet
bookings than originally predicted and expected from internet
alliances, revenue lost through upgrading retail store facilites and
the relocation and upgrading of the call centre.
The wholly owned subsidiary travelshop.com.au Pty Ltd recorded a loss
before abnormal expenses of $3.355 million against a projected loss
of $0.49 million. This variance of $2.865 million is due to $911,000
in relocation and software development costs which were unbudgeted,
$405,000 in unbudgeted advertising through alliances and additional
costs associated with Y2K and GST unbudgeted at $194,000.
The redevelopment and relocation of the call centre has increased
staff from 8 people to in excess of 40 equivalent full time people
resulting in additional staff costs in excess of budget of
approximately $240,000. The Directors have instructed that all costs
associated with the call centre redevelopment are to be written off
in the period ended June, 2000. The remaining $1.1 million variance
is attributed to gross margin lost on the reduced turnover.
Abnormal expenses which included the costs of closing existing retail
outlets were $925,000 giving travelshop.com.au Pty Ltd a net loss of
$4.28 million.
The alliance with news.com.au announced on 7 March, 2000 has expired
and the Directors advise that this alliance is not continuing.
The Directors have already taken positive steps to establish a
profitable trading base through changes in management and the
acquisition of profitable trading companies. One acquisition has been
announced, one other is in negotiation and subject to existing
preconditions.
P Stedwell
DIRECTOR
HOMEX - Melbourne
+++++++++++++++++++++++++
The Directors of Travelshop Limited (Travelshop) announce that Group
Revenue for the financial year ended 30 June, 2000 was $31.9 million
compared to the projected revenue announced by the Directors on 7
March, 2000 of $38 million. The variance of $6.1 million is
attributed by the Directors to a slower growth in actual internet
bookings than originally predicted and expected from internet
alliances, revenue lost through upgrading retail store facilites and
the relocation and upgrading of the call centre.
The wholly owned subsidiary travelshop.com.au Pty Ltd recorded a loss
before abnormal expenses of $3.355 million against a projected loss
of $0.49 million. This variance of $2.865 million is due to $911,000
in relocation and software development costs which were unbudgeted,
$405,000 in unbudgeted advertising through alliances and additional
costs associated with Y2K and GST unbudgeted at $194,000.
The redevelopment and relocation of the call centre has increased
staff from 8 people to in excess of 40 equivalent full time people
resulting in additional staff costs in excess of budget of
approximately $240,000. The Directors have instructed that all costs
associated with the call centre redevelopment are to be written off
in the period ended June, 2000. The remaining $1.1 million variance
is attributed to gross margin lost on the reduced turnover.
Abnormal expenses which included the costs of closing existing retail
outlets were $925,000 giving travelshop.com.au Pty Ltd a net loss of
$4.28 million.
The alliance with news.com.au announced on 7 March, 2000 has expired
and the Directors advise that this alliance is not continuing.
The Directors have already taken positive steps to establish a
profitable trading base through changes in management and the
acquisition of profitable trading companies. One acquisition has been
announced, one other is in negotiation and subject to existing
preconditions.
P Stedwell
DIRECTOR
