UNITED Co-op Travel Group is on the acquisition trail
after record year-end sales topping £400 million for the first time.
The group has already announced the acquisition of
Merseyside-based call centre operation Cruise Savers International (Travel
Weekly April 5).
Now parent group United Co-operatives plans a £100
million buying spree in its travel, food, motor, healthcare and funeral
businesses this year.
United Co-op Travel Group general manager Mike
Greenacre said acquisitions would be “successful travel businesses that will
add significant value to the group’s performance”, such as agencies that “fit
strategically” with its development. But he said no “serious discussions” were
currently taking place.
“We don’t want to put out the message we will sign a
cheque for anything. We’ve a very clear acquisition strategy.”
He said the group was also on the lookout for
greenfield sites to build up to six new shops this year to add to its 95-strong
network.
Sales for the United Co-op Travel Group, part of
United Co-operatives, reached £443.3 million for the year ending January 24
2004, up from £395.8 million the previous year.
The parent group’s pre-tax profits, adjusted to take
account of the 2002 merger to form United Co-operatives, reached £35.5 million,
up 38%.
Greenacre said the travel group’s record year followed
investment in shop refurbishments, its new purpose-built Barrow call centre,
and the launch of the Co-operative Travel Trading Group in April 2003.
CTTG has commercial agreements with more than 100
operators. In its first year, it carried three million passengers, with “true
net profits” over £10 million. For summer 2004 it has market share of 11%, said
Greenacre.
“CTTG has a 10% share of all
UK packages. We’re the key second player to the vertically integrated players
but capable of doing our own thing. There is a possibility for us to be our own
operator should we choose to.”