THREATS of a slowdown in the holiday market faded as Thomson Travel announced an "excellent" first year performance since flotation.

Thomson, which was floated in May last year, reported full year pre-tax profits for the year to December 31 of £122.9 million, up from £111.8 million in 1997.

Summer bookings in the UK on a like-for-like basis were down two per cent on last year, the company said, but added the market was showing signs of a strong recovery with demand up four per cent over the last month.

Turnover was £2.62 billion, up from £2.27 billion.

The results were boosted by a strong performance in winter holiday sales up 5 per cent in the UK, up 10 per cent in the Nordic region and up 36 per cent in Ireland.

The board proposed a final dividend of 2.25p a share taking the total for the year to 3p a share.

Over the year the group made seven acquisitions costing £44.1 million and this week announced an eighth takeover of Edinburgh-based Sibbald Travel.

Sibbald Travel, with 11 travel agencies in the Edinburgh region, was acquired for £3.5 million.

The group's other acquisitions over the year included Chez Nous, Blakes Boating Holidays, Crystal International travel and the Magic Group.

Looking forward the company said it expected the European travel industry would increasingly tend towards vertical integration with companies providing all elements of a holiday from retailing to transport and accommodation.

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