From November 1 last year, bookings made with the company have been processed by sister company Meeting Point Youtravel LLC, which is based in Dubai. London-based Youtravel.com Ltd now provides “various back office services to its sister companies within the group”.
Accounts recently released at Companies House for the year to October 31, 2014 reveal another loss for the now former bed bank.
Total transaction value rose from £77.8m to £124.2m, but turnover dropped by 83% to £862,000. Pre-tax losses fell slightly to £1m. The company’s auditor Baker Tilly flagged the accounts with an emphasis of matter. It highlighted the net liabilities of £9.7m and said there was the “existence of material uncertainty”.
However, FTI chief executive Dietmar Gunz told TTG: “We’re not going to lose money now and in the future... That’s what they [the auditors] have to write but obviously there’s a corporate guarantee of the group,” he insisted. FTI acquired 85% of Youtravel back in 2012 following a difficult period, which saw problems with supplier payments.
Since then FTI has taken full control. Gunz said the move to Dubai would help FTI expand its bed bank business internationally, as well as saving certain costs. “Youtravel in its old form, the way it was about a year ago, was focused on the UK market only,” he said. Gunz added that as well as the UK support office, there would be some expansion across Europe.
“There are going to be a number of Youtravel offices around the world. The next one is going to be in Italy [and] there’s going to be one in France,” he said. Youtravel was founded in 2006 by Ioannis John Kent, who is also chairman of the hotel group Aquis Hotels & Resorts. His remaining 15% stake in the company was bought by FTI last year.
