WEST West. & Orient.

 

TIDMWEST 
 
RNS Number : 7512P 
Western & Oriental plc 
31 March 2009 
 

31 March 2009 
 
 
Western & Oriental plc 
 
 
Trading update 
 
 
Western & Oriental plc, the specialist luxury travel group, today announces a 
trading update for the current financial year ahead of entering the close period 
relating to the 6 month period to 31 March 2009. 
 
 
Trading update 
 
 
Despite the very challenging economic environment the board is pleased with the 
overall business performance and anticipates that the group will be materially 
ahead of management expectations for the seasonally weaker first half of the 
financial year to 30 September 2009. 
 
 
In the first 6 months departure based sales have been broadly in line with 
expectations, gross profit margins are significantly ahead of expectations, 
overall costs are below expectations and interest received, due to the recent 
dramatic reductions in interest rates, is below expectations. This combination 
delivers a result materially ahead of management expectations. 
 
 
Integration 
 
 
All of the London based businesses, with the exception of Rainbow Holidays where 
economically it makes sense to leave the business in North London, have been 
integrated into the main offices in Victoria. Additionally, we have rolled out 
the new reservation and back-office systems to all tour operating businesses and 
are now starting to reap the benefits of the efficiencies those systems provide. 
 
 
Within conference and incentive we have consolidated the businesses into a 
single brand, W&O Events Limited, with a single management structure. Again, 
this consolidation provides further opportunities for reducing the cost base. 
 
 
Cost savings 
 
 
In the full year results announcement for the year to 30 September 2008 we 
announced that the overall overhead costs of the group had been reduced by some 
GBP1.7 million going forward. The cost base is now reaping the benefit of those 
actions in this financial year. In addition, since the start of the current 
financial year, we have taken the opportunity to further review the resources 
required to operate the group. This has resulted in additional cost reductions 
in December 2008 and March 2009 totalling approximately GBP0.9 million in the 
current financial year and some GBP2.0 million on a full year basis. 
 
 
Forward order book 
 
 
During the first 6 months of the 2009 financial year tour operating customers 
have booked significantly later than in previous periods. Customers are now 
booking 3 to 4 months forward compared to 6 months plus previously. 
 
 
Within the conference and incentive division forward order books are still very 
robust in the pharmaceutical sector, which represents over 50 per cent of total 
sales, less in other sectors. 
 
 
During the first 6 months the forward order book has reduced from GBP25.7 
million at 30 September 2008 by approximately GBP6.4 million to GBP19.3 million. 
 
 
Outlook 
 
 
Despite having taken appropriate action early to reduce costs management will 
continue to identify further areas for cost reduction and gross profit margin 
improvements. While the board remains cautious regarding the economy and 
consumer spending patterns, the group is now well placed and with the second 
half of the year traditionally stronger for Western & Oriental we are optimistic 
with regard to the results for both the half and the full year to 30 September 
2009, absent any further significant deterioration in the economic environment. 
 
 
 
 
David Howell 
Chairman 
 
 
 
 
 
 
Enquiries: 
 
 
+-------------------------------------+-------------------------------------+ 
| Western & Oriental plc              |                                     | 
+-------------------------------------+-------------------------------------+ 
| David Howell, Chairman              | 020 7821 4078                       | 
+-------------------------------------+-------------------------------------+ 
|                                     |                                     | 
+-------------------------------------+-------------------------------------+ 
| Collins Stewart                     |                                     | 
+-------------------------------------+-------------------------------------+ 
| Adrian Hadden                       | 020 7523 8353                       | 
+-------------------------------------+-------------------------------------+ 
|                                     |                                     | 
+-------------------------------------+-------------------------------------+ 
| Temple Bar Advisory                 | 020 7002 1080                       | 
+-------------------------------------+-------------------------------------+ 
| Tom Allison                         | 0778 999 8020                       | 
+-------------------------------------+-------------------------------------+ 
|                                     |                                     | 
+-------------------------------------+-------------------------------------+ 
About Western & Oriental plc 
Western & Oriental is a specialist luxury travel group with a number of 
established high quality brands. The company was admitted to trading on AIM 
under the ticker symbol WEST in March 2006. The Group acts as a tour operator, 
travel agent and conference and incentive organisers, offering a premium service 
for tailor-made and specialist packaged holiday programmes to destinations 
worldwide. 
 
 
For more information on Western & Oriental and its individual luxury travel 
brand websites, go to www.westernorientalplc.com. 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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