8th May 2006 07:01
Travelzest plc08 May 2006 Date: 8 May 2006On behalf of: Travelzest plc ("Travelzest" or the "Company")Embargoed until: 0700hrs Travelzest plcAcquisition of Peng Travel Limited ("Peng Travel") Travelzest plc, the British travel group offering specialist travel programmes,announces that it has entered into an agreement to purchase the entire issuedshare capital of Peng Travel Limited, the UK's leading naturist tour operator,which will be satisfied by cash and shares in Travelzest plc. Travelzest will acquire Peng Travel, a privately-owned business, for a maximumtotal consideration of £1,762,560 in cash and shares on completion, subject tothe fixed asset value and cash position of Peng Travel at completion. Thetransaction includes £732,000 of cash in the business. Peng Travel was formed in 1971 in response to the demand for specialist naturistholidays. Since then, it has grown to become Britain's biggest naturist touroperator. Audited results of Peng Travel for the year ending 31 December 2005show turnover of £2,585,925 and operating profit of £234,603. After adjustmentfor overhead costs relating to the previous owners, which cease upon acquisitionby Travelzest, the operating profit figure would rise to £257,640. At 31December 2005, net assets were £1,581,650 (2004: £1,351,532), including cash of£1,927,843 (2004: £1,703,442). Commenting on the acquisition, Chris Mottershead, Travelzest's Chief Executive,said: "It is our strategic objective to build a new travel group focused on highquality brands offering specialist holiday services. Peng Travel is asuccessful business and the leader in its niche market. It meets Travelzest'sstrict criteria for acquisitions, offering a sustainable revenue stream andgrowth potential at an attractive price. The group portfolio continues toevolve and we expect to make further acquisitions this year." Enquiries: Christopher Mottershead 020 7747 7231Travelzest plc Emma Kane / Samantha Robbins / Duncan McCormickRedleaf Communications Limited 020 7955 1410 Background information on Travelzest Travelzest is a travel group with high quality brands offering specialistholiday programmes and services. Chris Mottershead, 47, the Group Chief Executive who joined Travelzest in April2005, has extensive experience in the travel industry and in working for bothlarge and small organisations. He was managing director of TUI UK between 2001and 2004 with responsibility for Thomson Holidays, Lunn Poly, Travelhouse andother travel businesses based in the UK. During that time, he steered thecompany through one of the most difficult periods for travel and still achievedrecord profits. Prior to this, he was President and CEO, North American LeisureGroup, Airtours plc, which he joined in 1993 and where his roles includedmanaging director and finance director. He joined Airtours from Aspro Travel &Inter European Airways where he was Group Finance Director. The Group currently comprises: VFB Holidays - a long established, award winning tour operator, which providedholidays for approximately 24,000 passengers in its last financial year. VFB iscurrently contracted with the owners of approximately 350 holiday cottagesthroughout France for the summer season, and has booking arrangements with over150 hotels, most of which are privately owned and are located in rural orsemi-rural locations. VFB specialises in cottage holidays in France, but alsohas a number of other holiday programmes including: France a la Carte (hotelaccommodation), Corsica, Short Breaks, Escorted Tours and River Cruises. Holiday Express - one of the UK's leading on-line travel agents, Holiday Expressis a travel agent specialising in on-line travel fulfilment services and onlinetravel sales. Holiday Express' retail business (acting as travel agent),providing package holidays, charter flights and ski booking services, accountsfor the vast majority of its revenue and the remainder of its revenue isgenerated through acting as a tour operator. Holiday Express owns a number oftravel website domain names, including: - www.holiday.co.uk - www.flight.co.uk - www.discountholidays.com Best of Morocco is a tour operator specialising in high quality, tailor-madeholidays to Morocco for individuals or small groups. It provides apersonalised service and its highly experienced and knowledgeable staff helpeach customer select the hotels / resorts from their large range which areappropriate for the customer's desired style of holiday. Best of Morocco is thepremier agent for the Marathon des Sables, a foot race that takes place inMorocco in April each year, covering some 230km. Best of Morocco provides thelargest contingent of runners for the race each year. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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