Promotional cuts squeeze Landround

SALES at Landround have been hit by the decision of some businesses to cut promotional budgets.

The Chester-based group said sales were lower because firms are freezing or cutting budgets, and it is not clear when the situation will improve.

Earlier in the month Landround, which runs reward programmes and promotions, said it may sell some or all of its businesses as it responded to tough trading conditions.

In the six months to July 31 losses widened to £566,000 from £248,000 last time. Revenue was down 25% at £2.4m.

It also lost out due to a contractual dispute with one customer over buy & fly, a loyalty scheme that allows consumers to collect points and exchange them for travel and leisure offers.

The board said it hoped to recoup some of these earnings but it would still take a hit, meaning a further loss in the second half.

The business has cut overheads with the restructuring of its Madrid office and its Travel Pass contracts with Citigroup continue to develop.

In a statement the AIM-listed business said: “The group continues to work closely with its bankers and professional advisers and various options are currently under consideration to stabilise its financial position.

“The board continues to monitor the group’s position on a regular basis and will seek to inform the market further as and when appropriate.”