Lastminute sees profit within a year

Could things be looking up for Lastminute.com?

The UK's best-known internet firm Lastminute.com has said that it expects its British and French operations to be profitable within a year.

But it warned that it will shed around 15% of its workforce in the process.

Chairman Allan Leighton said that a "head count-related" cost-reduction programme was underway, with around 50 jobs, mainly in the firm's offices overseas, facing the axe.

The pioneering online travel company was reporting losses after tax of £10.6m ($15.3m) in the three months to the end of March, about £1m less than last year.

The company more than doubled its subscriber base to more than three million people.

It also said that the number of the site's customers who are actually buying has more than doubled within the last year.

Although that figure still stands at only about one in ten people.

Transactions were worth £27.8m, the firm said.

"Our strong brand, the impact of the roll-out of our new technology platform and prudent cash and cost management all mean that Lastminute.com remains well-placed to be a lead player in the European ecommerce marketplace," said Brent Hoberman, the company's chief executive.

Shares in the firm, which debuted with a price of 380p at its high profile flotation a year ago, fell 7% following Tuesday's announcement to 56p.

In February, the online retailer announced an alliance with the travel website of Thomas Cook, one of the UK's top travel firms.

The firm also acquired Degriftour, France's largest e-travel company last August.