Out-Law / Your Daily Need-To-Know

Lastminute.com achieves profit, loses Martha Lane Fox

20 Nov 2003, 12:00 am

Martha Lane Fox, arguably Britain's best-known web entrepreneur, today said she is stepping down from her post as Group Managing Director of lastminute.com. The announcement comes as her travel and leisure company reports its first full year of profitability.

"It has always been my ambition to see the Group deliver a full year of profitability," said Lane Fox. "Now this has been achieved, it is the right time for the business and the right time for me to explore other challenges."

Lane Fox and CEO Brent Hoberman floated lastminute.com in March 2000, the peak of the dot.com boom. Then aged 27 and 31 respectively, the company boasted a debut share price of 380p, valuing it at more than £500 million.

However, the share price slumped to just 17p in September the following year, prompting speculation that the company would collapse. But the share price has since recovered on the back of strong trading results, reaching a 52-week high of 318p last week.

Lane Fox will leave her executive role at the end of 2003. She will stay with the company as a non-executive director and will remain a major shareholder.

Brent Hoberman, CEO and co-founder, added: "Martha and I have worked together for six amazing years and her contribution has been tremendous."

Ian McCaig, appointed COO in August 2003, will take on Fox's responsibilities and will today join the board as an Executive Director.

The company today reported a pre-tax profit (before goodwill amortisation and exceptional items) for the financial year of £200,000. This compares to a loss of £16.2 million in the last financial year. It's gross profit for 2003 grew by 204% to £100.9 million.

Lastminute.com's total transaction value for 2003 grew by 125% year-on-year to £552.4 million, up from £246 million in 2002.