Intosol shares slide despite double-digit increase in Q1 bookings

Luxury travel company Intosol saw its shares slump on Monday morning despite witnessing a double-digit increase in bookings at its boutique hotels during the first quarter of its trading year and predicting that its new business model would lead to higher margins over the remainder of the year.

Intosol, which floated on the London Stock Exchange back in October, turned in revenues of €1.78m in the three months ended 30 April - with €1.47m of that coming from its German private travel unit.

SOUL, the company's owned and managed boutique hotels in South Africa, also recorded a 15% year-on-year increase in guest bookings.

Looking forward, Intosol predicted an improved financial performance coming as a result of its new business model for its hotels business, where existing rental properties were being replaced by new properties on management contracts at a 35% commission, ensuring higher margins and capturing additional upside from commission.

Intosol said that ahead of the October-January high season, it's board had also begun tinkering with its Private Travel Design unit in order to drive increased revenues - including expanding its team and list of travel locations as well as "progressing negotiations with potential international partners to establish global divisions" and "reviewing potential acquisition targets".

Chief executive Rainer Spekowius said: "The first quarter of Intosol's financial year has seen us make excellent progress across our SOUL Private Collection and Private Travel Design business, highlighted by increasing revenues and despite it being low season for luxury travel.

"We believe we now have the right model in place to see continual improvements in our financial performance as we move into the high season and look forward to providing updates on progress."

As of 1040 BST, Intosol shares had slumped 14% to 30.10p.