Online retailer Lastminute.com shrugged off the effects of the Iraq war and the Sars virus to announce an underlying third quarter profit of £4.1m yesterday but played down suggestions that its improved performance could make it a takeover target.

Chief executive Martha Lane Fox said the final quarter, which runs through the summer holiday season, was seeing strong sales, putting the company on track for its first overall profit before goodwill for the full year.

Lastminute.com reported earnings before interest, tax, depreciation and amortisation of £4.1m for the three months to June, compared with an ebitda loss of £1.9m in the same period last year.

The company, which sells holidays, flights and gifts, now has 7.5 million subscribers to its email database, up from 5.6 million last year.

Ms Lane Fox said that Lastminute.com was not encouraging takeover approaches. "We are not talking to anybody and we are not touting ourselves around," she said. "We are seeing huge growth, but of course we have an obligation to consider any deal put to us."

The role of predator is one Lastminute.com has taken on itself this year, buying car rental company Holiday Autos for £39.7m in March. Ms Lane Fox said she believed there was room for more consolidation in the online retail sector.

Lastminute.com's shares have risen by about 78% since May and closed yesterday at a year high of 246p, up 16.5%.

Yesterday's results were slightly above market expectations and the company said Sars and the Iraq war had a limited impact on its sales due in part to its diverse range of products. Rival site Ebookers, which makes 80% of its revenues from long-haul flight bookings, reported a second quarter loss of £900,000 on Monday after being hit by a fall in demand.

Lastminute.com derives only a quarter of its sales from long-haul flights.