Lastminute set to crack first profit

FORMER dotcom star lastminute.com is poised to make its first profits after a sharp jump in sales in the past three months. Shares in the online retailer, floated just before the tech bubble burst two years ago, soared nearly 7% in late morning trade.

The company said its UK and French business had traded 'exceptionally well' in the three months ended September. Overall sales on a like-for-like basis would be ahead 55%, with margins fatter thanks to the sale of more lucrative holidays, and higher advertising income.

The profits would be struck before tax, goodwill amortisation and one-off items. Chief executive Brent Hoberman said lastminute would also have a positive cashflow. The shares jumped 5 1/2p to 86 3/4p.

The company said total transaction value - the total value of products or services sold - would rise to £110m in the quarter, from £61m in the preceding three months.

Its performance had benefited form the acquisitions of Travelselect.com and the Destination Group in the UK and from a two-month contribution from Travelprice.com in Europe, principally in France.

Fourth-quarter and full-year results are due on 22 November.