Lowcostbeds.com will tomorrow end speculation that the bedbank is on the brink of a major acquisition.
Chief executive Paul Evans today refused to confirm or deny rumours that the company is close to signing a deal with an unknown party, saying only that he would make a formal announcement tomorrow.
However, he remained bullish both on the current state of the market and the opportunities it presents lowcostbeds.com.
Evans said: “We’re looking at a number of companies; we’re in good shape, we’ve had a very good year, grown a lot, been profitable for two years and we were even more profitable this year.
“To us the problems in the industry are a huge opportunity and we want to capitalise on that.”
Lowcostbeds.com reported pre-tax profits for the year ending October 2007 of £308,000 on a £5.5 million turnover as opposed to £141,600 on £3.8 million turnover the previous year.
It is not known whether the acquisition deal would see consolidation in the bed bank market or if Evans is targeting a company elsewhere in the industry.
Like much of the rest of the industry, the bed bank sector is undergoing a torrid time with Bluebankonline ceasing trading last week blaming the slowing economy, the failure of the XL Leisure Group and a move away from dynamic packaging.
Although payments for its 10,200 forward bookings are protected by its trust account, the majority of its 26 staff are expected to be made redundant.