LONDON, Aug. 9, 2004 (PRIMEZONE) -- lastminute.com, Europe's leading independent online travel and leisure group, today issues guidance on the financial years to 30 September 2004 and 2005 to clarify and augment the Quarter 3 results announcement made on 5 August 2004. This guidance is to ensure that the market has Company data on which to make decisions.
As part of the Quarter 3 2004 results announcement the Company guided investors towards the delivery of 400.0 million of TTV (Total Transaction Value) during the key Quarter 4 and gross margins of 18.0% for the financial year as a whole. Following the July sales and margin performance, where we saw an acceleration of pro-forma organic like-for-like TTV growth from 22.3% in Quarter 3 to 27.3% in July, we now clarify Quarter 4 2004 EBITDA (earnings before interest, taxation, depreciation and amortisation), pre exceptional items, of between 25.0 and 30.0 million. This will deliver EBITDA, pre exceptional items, of between 26.7 and 31.7 million for the financial year as a whole.
Having also further reviewed the financial year to 30 September 2005 in light of the anticipated cost savings from integration of the acquired businesses, lastminute.com anticipates EBITDA for that financial year to be in a range between 55.0 and 65.0 million.
lastminute.com also confirms that it has sufficient working capital for the foreseeable future. In the Quarter 3 results announcement the Group had net cash of 65.4 million, before the 16.0 million cash outflow associated with the acquisition of lastminute.de and the cash exceptional items to be incurred in Quarter 4. In addition the Group has overdraft facilities of a further 10.0 million. Based on its current projections the Group expects to generate a significant operating cash inflow during Quarter 4 leading to a year end cash balance of approximately 70.0 million. At the current time the Company anticipates an operating cash outflow of approximately 20.0 million during the first quarter of the 2005 financial year, its seasonally weakest quarter.
In addition there has been media speculation over the weekend regarding the Clive Jacobs share sale. Clive ceased to be an Executive Director of the Company on 30 June 2004. Clive verbally informed the Company that he no longer had a notifiable interest on Friday afternoon at which point an announcement was made to the market. Clive has since confirmed that he is still a substantial holder of lastminute.com shares with just under 3.0% of the issued capital.
This press release may contain forward-looking statements. Expressions of future goals, including without limitation, "intend," "will," "should," "are well on track," "expect" or "continue," and similar expressions reflecting something other than historical fact are intended to identify forward looking statements. The following factors, among others, could cause lastminute.com's actual results to differ materially from those described in the forward looking statements: management of lastminute.com's rapid growth; speed of technological change, including introduction of new architecture for its web sites; systems-related failures; the ability to attract and retain qualified personnel; adverse changes in lastminute.com's relationships with airlines and other product and service providers; adverse changes in the services provided by lastminute.com's suppliers; lastminute.com's ability to attract and develop an adequate international supplier and customer base; potential adverse changes in its commission rates; the effects of increased competition; risks relating to operating Internet -- based commerce in foreign markets; lastminute.com's dependence on its ability to establish its brand; lastminute.com's ability to protect its domain names and other intellectual property rights; legal and regulatory risks; a slow down in the continued growth of e-commerce and the internet; unforeseen events affecting the travel industry and factors adversely affecting lastminute.com's share price. All such forward-looking statements are made in reliance on the safe harbour provision of the US Private Securities Litigation Reform Act of 1955. These and other risk factors are described in detail in lastminute.com's shareholder circular dated 8 September 2000, which has been filed with the Securities and Exchange Commission, USA and the Financial Services Authority, UK.