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Travelzest, the UK and Canadian holiday retailer, announces that it has successfully raised £5.7m and restructured its debt. The Group consists of 11 operating units, nine of which are specialist tour operators and two of which are agency businesses, which span both the UK and Canada.
Jonathan Carroll, Travelzest’s Chief Executive Officer, commented: “This has been a challenging six months for Travelzest as we have restructured our business. We are delighted with the support that we have received from our shareholders and bankers. We have set a clear direction and have positioned the Group to succeed.”
Since June 2009, the new management team has focused on recapitalising the balance sheet, restructuring the debt and aligning the Group with current market opportunities.
The revised strategy will build on the Group’s strong position in the markets in which it operates. The Directors believe there are signs of improved consumer confidence in both the UK and Canadian markets and that growth will be achieved by focusing on existing brands and operations to gain market share.
Chief Operating Officer and Finance Director, Jack Fraser, commented: “We have spent the last six months reviewing and implementing new strategies and cost cutting measures to improve the efficiency of our operations. We are also developing new marketing initiatives that we believe will drive stronger growth for the Group.”
Details of the placing
In total, the placing raised approximately £5.7 million (before expenses) through the issue of new ordinary shares. The Group’s existing shares have today resumed trading on AIM and the new ordinary shares were admitted to trading at the same time.
The Directors and Management have demonstrated strong support for the Group by subscribing for a significant proportion of shares in the placing. Similarly strong support has been provided by key institutional investors.
Stuart Trussler, Director, Strategic Debt Finance Team, Barclays Commercial, commented: “Travelzest is a good example of a business that is working vigorously to adapt to changing economic conditions, and we are delighted to support the current management team in their endeavours.”
On admission of the new ordinary shares today, the amended facility agreement with Barclays became effective. The net proceeds of the placing will be used in support of the facility agreement and for working capital purposes to enable the Group to pursue its stated strategy.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
