Ebookers.com, the online travel firm, yesterday announced it is to list its shares on the London Stock Exchange, shrugging off the turmoil in the hi-tech sector.
The London-based firm, already listed on Frankfurt's Neuer Markt and the Nasdaq, also confirmed that it aims to move into profit by 2002.
Navneet Bali, Ebookers' chief financial officer, said the company was seeking a London listing to give it access to future funding from UK-based investors, even though it is not raising any new money at the moment. Despite the negative sentiment about online companies, it had decided to stick to its plans rather than waiting for a market recovery.
"The move brings us closer to our investor base in our largest market," Ebookers said. "It is expected to allow us access to institutional funds that could not previously buy Ebookers.com stock."
Mr Bali emphasised that the firm, which raised $45m from European institutional investors last July and has $50m in the bank, has enough cash to take it into profitability.
"We are not raising new money." said Mr Bali. "It is just a technical listing that allows our ordinary shares to be traded." Ebookers hopes London trading in its stock will begin before the end of March. It has no plans to change its listings on Nasdaq and the Neuer Markt at present.
The news came as the company reported a fourfold increase in fourth quarter sales to $36m (£24.5m), up from $9m for the same period in 1999. Full year sales reached $123.5m, up from $23m in 1999, with registered users increasing from 740,000 at the end of the third quarter to 850,000 at the end of 2000.
Ebookers said its pre-tax loss, excluding stock compensation, was $40m - compared to $7m in 1999.
Chief executive Dinesh Dhamija said: "Losses have gone up so much because we spent a lot more on sales and marketing in the first half of last year."
Mr Bali said sales and marketing costs would continue to be reduced. As a percentage of sales, they fell from 34% in the first quarter of 2000 to 17% in the fourth quarter.
"Since mid-1999 we've grown tremendously, and obviously we've had to invest a lot in technology as well as sales and marketing to build a brand," Mr Bali said. "All that is behind us now."
Analysts were yesterday positive about Ebookers' results.
"They seem on target to be profitable at the end of 2001 or the start of 2002, and revenues were pretty good for an online business", one analyst said.
However, the analyst was sceptical about the interest the firm could expect to receive from institutional investors because of the relatively small size of the business.
Mr Dhamija also admitted yesterday that Ebookers, which has expanded into 11 countries including Spain, Switzerland and Ireland, is on the hunt for acquisitions.
"We want to go into Italy and into the business side of travel," he said. "I would also like to acquire larger leisure companies in Germany and France." Shares in the company have plunged in line with the rest of the technology sector - from a high of 44 euros in March they fell yesterday by 0.27 euros to 3.33 euros.
