Lastminute director may go

THE future of David Howell, the finance director of Lastminute.com, is in doubt after the online holiday company warned that underlying earnings for the third quarter would be at the bottom end of expectations.

Insiders claim that Howell, who joined in 2001 from rival leisure group First Choice, will shortly leave Lastminute.com.

However, they deny rumours of a rift between chairman Allan Leighton and chief executive Brent Hoberman over the future strategy of the company.

Last week, Lastminute announced 220 redundancies in Britain and the closure of offices in Bracknell, Berkshire; Twickenham, south-west London; and central London.

Hoberman said Lastminute had paid out more in travel agents' commissions than had been hoped and complained that it had sold more flights as a proportion of revenue.

This attracted lower profits than more lucrative holiday packages.

The cost cuts and predicted sales growth of 26% will lead to underlying earnings of £55m next year, which is at the bottom end of City estimates.

One banker said: 'The big problem for Lastminute is that it really promoted itself to investors when its shares were £3. They now stand at 107 1/4p.'

It is believed that several holiday companies have looked at Lastminute, but have retreated after deciding that it is too expensive.