Online Travel raises GBP8m.

Investors Chronicle, December, 2003

To help satisfy the financial demands of the Civil Aviation Authority, internet-focused travel company Online Travel has raised GBP8.3m by way of a placing at 15p a share. The cash call was oversubscribed, but helped bring in 15 new investors. Collectively, institutions will control 75 per cent of Online, assuming approval of the deal at an extraordinary meeting on 8 January.

Weak bookings over the summer hampered growth, but Online is confident that 2004 should be a good year thanks to sufficient financing, a deal with Thomas Cook to operate its website, and a sharp recovery in sales at its core onlinetravel.com site. Broker Altium expects sales of GBP150m, profits of GBP3.5m and EPS of 2p.