Profits blow for Lastminute

lastminute.com, once the doyenne of technology companies, today saw profits fall well short of City expectations and suffered a 16 per cent crash in its share price.

The company blamed mounting costs following an aggressive spree of takeovers across Europe and announced that its finance director is to quit.

David Howell's departure came soon after chairman Allan Leighton also announced he is leaving.

Some analysts have cast grave doubts over Lastminute's future. While the company grew rapidly in its six years under the stewardship of Martha Lane Fox and American Brent Hoberman, big tour operators have now woken up to people's passion for booking holidays online.

Last month, Lastminute warned of a shortfall in profits but today's figures came in 20 per cent lower than that guidance, sending investors rushing to dump their shares.

Underlying profits in the year to 30 September were ?24 million against City expectations of nearly ?27 million.