Martha Lane Fox, one of the few surviving entrepreneurial stars of the dotcom boom, has quit as managing director of Lastminute.com, as the online retailer posted its first ever full-year profit.

Ms Lane Fox, who founded Lastminute.com with Brent Hoberman five years ago, will stay on as a non-executive director of the company and remains a major shareholder.

She will be replaced as group managing director by Ian McCaig, who joined Lastminute.com as chief operating officer in August. Mr McCaig will also join the company's executive board.

Ms Lane Fox's announcement came as Lastminute.com unveiled a pre tax profit of £200,000 for the 12 months to the end of September, compared with a £16.2m loss in the previous financial year.

However, Lastminute.com's first profit was less than the City had expected and shares in the company fell by 9% in early trading today.

"It has always been my ambition to see the group deliver a full year of profitability," Ms Lane Fox said.

"Now this has been achieved, it is the right time for the business and the right time for me to explore other challenges.

"I am delighted to be continuing to help grow this exciting business from my new role as a non-executive director."

Mr Hoberman, the chief executive of Lastminute.com, said: "Martha and I have worked together for six amazing years and her contribution has been tremendous. I am now looking forward to continuing my work with Ian, who has made a strong impact since he joined in August 2003."

Lastminute.com more than doubled revenues in the last financial year, hitting £552.4m, compared with £246m in the previous 12 months.

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