INTOSOL Holdings PLC (LON:INTO) returned to profitability in the first half of the year after improving profit margins and cutting costs.
The boutique travel group, which runs a portfolio of owned and managed hotels in South Africa, said margins were boosted by new revenue streams added in the six-month period to 31 July, including marketing of events and incentive travel.
While the half year included only two months in the high season, February and March, chairman Rainer Spekowius said it was a “strong” season, “with a significant increase in short-term bookings”.
He hailed a “significant” reduction in costs in both operational companies in Germany and South Africa after a reorganisation of the marketing department and the implementation of a “more efficient marketing strategy including strong reduction of marketing costs as well as a slight reduction of personnel costs throughout the company”.
Spekowius said that following the phase post Intosol’s London listing last year, which brought one-off costs, “the company has returned to profitability”.
An operating profit of €23,429 was reported for the half year compared to a €775,000 loss last time.
Amid a generally “stagnant” global travel market, revenue came in at €3.3mln compared to €3.6mln in the same period last year, with a reduction in the loss before tax to €68,289 from €879,058 last time.
Spekowius hit an optimistic note in his outlook statement: “Our growth strategy is underpinned by strong market fundamentals for high-end tourism, with research showing, that luxury travel is growing twice as fast as the overall market.
“With a portfolio of high-end, boutique hotels, we are well positioned to take advantage of this.”