Dinesh Dhamija yesterday made £9.5m by selling shares in Ebookers, the online travel agency he floated in 1999.

Shares in Ebookers have risen strongly over recent months as the company has moved closer to becoming fully profitable - which analysts expect to happen in the second quarter of next year.

Yesterday Ebookers passed another milestone, announcing its first ever profit before financial charges, making £200,000 in the three months to September 30.

Mr Dhamija, Ebookers' chief executive, said his decision to sell was linked to the performance of the group, which achieved an underlying profit three months ahead of schedule, and demand from investors for more stock.

He said the demand for stock from investors proved that there was demand for dot.com stocks with workable business plans.

"Travel on the internet works, and institutional investors can see that coming through our quarterly figures," he said.

Mr Dhamija sold 3m shares - or 6% of the business - at 315p each through Evolution Beeson Gregory to a handful of institutional investors new to the company.

Mr Dhamija, who still owns 53% of the business and has not sold any shares since May 2000, said he would use the money to strengthen the financial position of his family. He is married to Tani, a former airline stewardess, and has two sons, Biren and Darun, who are both in their early 20s.

Mr Dhamija, 52, denied rumours that he would quit the business. He said he has no desire to retire and adopt the typical millionaire lifestyle. "Sailing is great but I just do not know how to do it - nor can I ski, so I guess I will just have to keep working."

If Ebookers achieves full profitability in 2003, the next milestone for the business will be to pay out to shareholders, said its chief financial officer, Nigel Addison Smith.

"As I was walking out of a meeting with a potential shareholder recently I made the mistake of saying to the guy that my ambition was to be the first finance director of an internet company to pay a dividend and he said 'I will hold you to that'.

"I would certainly like to be in that position at some stage."