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Harvey World Travel PRESS RELEASE: 25/9/2000 HARVEY WORLD TRAVEL IN TOWNSVILLE SET TO PROVIDE TRAVELLERS WITH A COMPREHENSIVE RANGE OF FINANCIAL SERVICES Harvey World Travel in Townsville is set to provide local and international travellers, including the area's large number of Australian defence force members, with a comprehensive range of exciting financial services, along with ongoing expert travel advice and bookings, with the opening of the region's first foreign exchange bureau. The bureau, to be located at the new Harvey World Travel Store, Shop 95 in Stockland Plaza, Townsville, will commence operations on Monday September 18th, providing travellers with a convenient means of handling all their travel-related financial requirements, while providing them with instant service, without any of the delays afforded to them previously. The bureau will operate six days a week and be staffed by experienced finance professional and Townsville resident, Ms Amanda Bruce. Harvey World Travel is the first travel agency in Australia to provide the exclusive finance service, through a unique strategic alliance signed by Harvey World Travel with the world's best known travel and finance group, Thomas Cook. Mrs Debra Giudes, manager and owner of the Harvey World Travel stores in Townsville, along with husband Wayne, said "We are proud to be the first travel agency in Australia to provide this fantastic service with the world's best known travel finance group". Mrs Giudes added, "Our customers will appreciate the added value our Harvey World Travel store will provide to them, with a comprehensive array of travel finance for local people and tourists to Townsville, including currency conversions, the provision of traveller's cheques and offshore funds transfers. "We expect to expand our range of financial transactions over the next few years and expect our bureau will be especially popular with Townsville residents sending money to their relatives overseas and foreign navy personnel changing their currency into Australian dollars. "The bureau will also prove extremely popular with Australian defence force members based in Townsville, who will now have a professional one stop shop for all their currency needs," added Mrs Giudes. The new foreign exchange bureau should provide a strong boost to tourist numbers in Townsville's Stockland area, increased local traffic and a boost to general business activity. For Further Information Call: Wayne Giudes: Harvey World Travel: Ph: (07) 4725 3355
PRESS RELEASE: 11/9/2000 HARVEY WORLD TRAVEL IN SORRENTO QUAY SET TO PROVIDE TRAVELLERS WITH A COMPREHENSIVE RANGE OF FINANCIAL SERVICES Harvey World Travel in Sorrento Quay, Perth, is set to provide local and international travellers with a comprehensive range of exciting financial services, along with ongoing expert travel advice and bookings, with the opening of the region's first seven day a week foreign exchange bureau. The bureau, to open on Tuesday, September 12th, will be located in the Harvey World Travel office in Sorrento Quay, located at Shop 1, Hillary's Boat Harbour, and will provide travellers with a convenient means of handling all their travel-related financial requirements. The bureau will operate seven days a week and will be staffed by experienced finance professionals and local residents, Susan Duckling and Alison Bannister-Jones. Harvey World Travel is the first travel agency in Australia to provide the exclusive finance service, through a unique strategic alliance signed by Harvey World Travel with the world's best known travel and finance group, Thomas Cook. Manager and co-owner of the Harvey World Travel store in Sorrento Quay, Mr Paul Ramsay, said "We are proud to be the first travel agency in Australia to provide this fantastic service with the world's best known travel finance group". He added, "Our customers will appreciate the added value our Harvey World Travel store will provide to them, with a comprehensive array of travel finance for local people and tourists to Sorrento Quay and the surrounding region, including currency conversions, the provision of traveller's cheques and offshore funds transfers". Mr Ramsay said, "We expect to expand our range of financial transactions over the next few years and expect our bureau will be especially popular with local residents sending money to their relatives overseas". The new foreign exchange bureau should provide a strong boost to tourist numbers in Sorrento Quay and the surrounding region, increased local traffic and a boost to general business activity. For Further Information Call: Paul Ramsay: Harvey World Travel: Ph: (08) 9381 9555
PRESS RELEASE: 11/9/2000 HARVEY WORLD TRAVEL EXPANDS ITS RETAIL NETWORK IN SOUTH AFRICA AFTER RECORD PROFIT The Southern Hemisphere's largest retail travel agency franchise network, Harvey World Travel Ltd, is quickly expanding in South Africa with another 18 outlets planned this financial year to June 30, 2001, taking its total to 80 outlets. HWT Southern Africa has begun making profit contributions to Harvey World Travel in Australia and is showing strong growth in revenue. The group's overseas expansion complements Harvey World Travel's opening of 13 new company owned or sponsored outlets in high profile shopping centres across Australia over the last six months. Expansion in South Africa over the last year has centred on the cities of Cape Town, Durban, Pretoria and the Gauteng Region, and the number of outlets is exceeding Harvey World Travel's growth targets. A Director of Harvey World Travel, Mr Barry Mayo, said "Our significant expansion of South African operations is providing our company with a growth stream of revenue through royalties, which will also be boosted by the adoption of new training systems, accounting packages and the incorporation of a new booking engine for our web site over the next two months". He added "The business opportunity resulting from the adoption of the HWT franchise system is recognised by our early recruits with several of them now operating." Harvey World Travel now has about more than 465 travel shop outlets across Australia, South Africa and New Zealand, as well as Zimbabwe, Namibia, Botswana and Egypt. The company has posted an operating profit after income tax of $3.08 million for the year ended June 30, 2000, beating its October 1999 prospectus forecast of $2.83 million by 9 per cent. The operating profit after tax represents an increase of 45 per cent on the adjusted historical profit for 1999 of $2.12 million, as disclosed in the Company's prospectus. For Further Information Call: Barry Mayo/Paul Fleming: Harvey World Travel: Ph: (02) 9567 6099
PRESS RELEASE: 28/8/2000 HARVEY WORLD TRAVEL POSTS IMPRESSIVE GROWTH AND BEATS PROSPECTUS FORECASTS FOR 1999-2000 Australia's largest retail travel agency franchise network, Harvey World Travel Ltd, has posted an operating profit after income tax of $3.08 million for the year ended June 30, 2000, beating its October 1999 prospectus forecast of $2.83 million by 9%. The operating profit after tax represents an increase of 45% on the adjusted historical profit for 1999 of $2.12 million, as disclosed in the Company's prospectus. Meanwhile Harvey World Travel's operating profit before abnormals and income tax rose 34 per cent from the 1999 adjusted prospectus historicals of $3.4 million, to $4.6 million, which is also above the prospectus forecasts. Directors have declared a final, fully franked dividend of 3 cents a share, taking the annual dividend to 4 cents a share - also in line with its prospectus forecasts. Directors said the financial year was marked by very buoyant sales growth in most markets, especially in the long haul routes to Europe and the US. They added that this month's expansion into a broad range of financial services, through an exclusive strategic alliance with one of the world's largest travel and finance groups, Thomas Cook, is already providing a new, broader range of revenue streams and fee income for Harvey World Travel. Early results from a trial of the new Thomas Cook Foreign Exchange bureaux inside an enlarged Harvey World Travel office is showing very positive signs and managing director of Harvey World Travel, Mr Paul Fleming, said "the company is now investigating other opportunities to expand further into the financial services sector". Another major development in the coming months is the launch of Harvey World Travel's "new generation" web site in November, 2000, which will mark the entry of the group into online airline bookings. HWT's own licensed booking engine will link directly into Harvey World Travel's exclusive airfares database, allowing the group's customers to choose between making their own online bookings through a central fulfilment centre or directing their bookings through a Harvey World Travel outlet of their choice. Harvey World Travel's South African operations, which is a 50 per cent joint venture with Rennies Travel, have begun making profit contributions and are experiencing strong profit growth, with its 62 outlets at balance date expected to reach 80 by June 30, 2001. The Harvey World Travel franchise network currently has more than 450 outlets across the world, in Australia, New Zealand and Southern Africa, with expansion into the world's largest travel market, The United States of America, currently under investigation. Mr Fleming said, "The encouraging growth of our newly opened network in South Africa is expected to continue, while full or partial acquisitions of offices in New Zealand are also being sought to broaden our distribution base there." In line with its prospectus forecasts, Harvey World Travel is building its presence in the Australian market, with the re-location and opening of 13 new company-owned or franchised outlets in high profile shopping centres. These new outlets in high traffic areas are already posting strong results and more openings are expected this year. The Harvey World network of agencies now have more than a 10 per cent share of the Australian leisure travel market, with a strong focus on the premium leisure travel sector. For Further Information Call: Paul Fleming: Harvey World Travel: Ph: (02) 9567 6099
PRESS RELEASE: 8/8/2000 HARVEY WORLD TRAVEL EXPANDS INTO FINANCIAL SERVICES WITH THOMAS COOK Harvey World Travel Ltd, has expanded into financial services with an exclusive strategic alliance signed with one of the world's largest travel and finance groups, Thomas Cook. This alliance will see Thomas Cook opening Foreign Exchange bureaux inside a number of existing or enlarged Harvey World Travel offices in locations where Thomas Cook is not currently represented. An initial three offices will be opened in Townsville and Mackay in Queensland and Sorrento Quay in Perth, and it is both groups' intention to roll out additional bureaux in key Harvey World Travel offices across Australia and New Zealand over the next five years. Managing Director of Harvey World Travel, Mr Paul Fleming, said "This initiative opens the way for new revenue streams to our company and our franchisees, as well as opening up a range of other opportunities to expand further into the financial services sector". He added, "Thomas Cook will construct and maintain the bureaux and train and employ staff to service customers, who will appreciate the added value our Harvey World Travel outlets provide them". Mr Fleming said the bureaux will be opening in Harvey World Travel outlets in many of the regional and city areas where Thomas Cook does not currently have any foreign exchange facilities, opening the way for strong growth in revenue and fee income to Harvey World Travel. Thomas Cook is one of the world's most recognisable brands, with an international network serving over 20 million customers each year. Its financial services business consists of three businesses - consumer foreign exchange, commercial foreign exchange and wholesale banknote dealing. Managing Director of Thomas Cook Australia, Mr Ian Spight, said "This is an ideal opportunity to quickly expand our Australasian retail foreign exchange operations through one of the region's largest and most professional travel agency networks. We are looking forward to expanding our range of financial services outlets through Harvey World Travel." Harvey World Travel has quickly expanded over the last half year, with 11 new company owned or sponsored outlets opened in Australia by the June 30, 2000, balance date. Mr Fleming, said "Harvey World Travel is fulfilling the plans outlined in our prospectus that we would use some of the proceeds from our recent, over-subscribed Initial Public Offering to investigate a range of growth opportunities in Australia, including expansion into financial services, the re-location and opening of outlets in high profile shopping centres and the expansion of the group's internet site/e-commerce activities." This strategic alliance with Thomas Cook has tremendous benefits for both organizations in that it gives Harvey's a real entry into the Foreign Exchange business for minimal outlay and at the same time provides Thomas Cook high profile foreign exchange penetration throughout Australasia. For Further Information Call: Paul Fleming: Harvey World Travel: Ph: (02) 9567 6099
PRESS RELEASE: 24/7/2000 HARVEY WORLD TRAVEL LAUNCHES CRUISE CLUB TO CAPITALISE ON CRUISE MARKET GROWTH The Southern Hemisphere's largest retail travel agency franchise network, Harvey World Travel Ltd., has launched a Cruise Club with 40,000 members across Australia and growing daily, to capitalise on the growth of the local and world cruise market. More than 200 of Harvey World Travel's 350 travel offices in Australia have become cruise specialists, complying with a strict membership criteria, ongoing professional development, and customer focused service standards where staff members are designated as "cruise experts." The Cruise Club member offices will further enhance Harvey World Travel's pre-eminent position in Australia as one of the country's top agency groups for cruise holidays, offering the widest variety and best cruise deals available through its strong bargaining power and market coverage. Managing Director of Harvey World Travel, Mr. Paul Fleming, said "We plan to expand our operations further in the cruise business, where we have been able to use our considerable bargaining power with 40,000 members to gain preferential deals and good discounts". He added the creation of the club was a natural and low-cost expansion of the company's operations, creating a niche in the fastest growing segment of the Australian travel market. The Cruise Club will also boost Harvey World's turnover and margins across a range of cruising products, and increase its customer loyalty and repeat business in both sea and land travel. Mr. Fleming said, "Our Cruise Club allows us to put clients together from various parts of Australia to share cabins with people of common interests and therefore save client's money on special deals such as Friendly Fours etc". Harvey World Travel's head office is negotiating with local and overseas cruise companies to access special offers, particularly through "distressed", last minute cruise vacancies at discounted rates, bulk discounts for groups, and specially organised Harvey World Travel tours. The directors of Harvey World Travel are very happy with this year's overall retail growth and are confident this new market approach to the cruise holiday business will add to it. For Further Information Call: Paul Fleming/Melissa Lindsay: Harvey World Travel: Ph: (02) 9567 6099
PRESS RELEASE: 19/7/2000 HARVEY WORLD TRAVEL APPOINTS INTERNET MANAGER TO DRIVE E-COMMERCE STRATEGY Harvey World Travel Ltd has appointed Mr Kenneth Chin as its e-commerce manager, to drive the travel agency network's development of its "new generation" website. Planned for launch in November, the new Harvey World website will allow travellers in Australia, South Africa and New Zealand to make on-line bookings and plan detailed travel itineraries. Mr Chin joins Harvey World Travel with extensive experience in the internet industry, having been the managing director of Synapse Media Pty Ltd, a Perth-based multimedia and e-commerce company. He was previously with Asia Pacific Media Technologies Pty Ltd, where he developed on-line business and marketing strategies. Mr Chin has an MBA from the University of Western Australia and has also worked with the Apple Centre in Perth and the National Computer Board of Singapore. A Director of Harvey World Travel, Mr Barry Mayo, said "We see technology as a major source of competitive advantage in our industry and Ken's extensive experience and expertise will assist Harvey World Travel's management team to create Australia's best "clicks and mortar" travel operation." Harvey World Travel recently achieved another milestone in the development of its new generation internet operations with the signing of an agreement with Penzance Travel Technology Ltd for the adoption of the exclusive ARNOLD (Airline Reservations On-Line Database) technology, now popular in the US for multi-point and complex airline bookings. ARNOLD will allow customers to make on-line flight bookings to a central reservations point or re-direct their enquiry to the franchisee of their choice. The system will match a customer's itinerary with airfares from a private fares database and seat availability from global airline reservations systems. Harvey World Travel's website will offer customers a new level of service, convenience combined with the best airfares available. For Further Information Call: Barry Mayo: Harvey World Travel: Ph: (02) 9567 6099
PRESS RELEASE: 29/6/2000 HARVEY WORLD TRAVEL DEVELOPS NEW GENERATION E-COMMERCE STRATEGY Harvey World Travel Ltd, has signed an agreement for the development of its "new generation" website, allowing travellers to make on-line bookings and plan detailed itineraries from next September in Australia, South Africa and New Zealand. Harvey World Travel has signed an agreement with Penzance Travel Technology Ltd for the adoption of the exclusive ARNOLD (Airline Reservations On-Line Database) technology, now popular in the US for multi-point and complex airline bookings. ARNOLD will allow Harvey World Travel's customers to make on-line flight bookings to a central reservations point or re-direct their enquiry to the franchisee of their choice following the matching of airfares from a private fares database and seat availability from global airline reservations systems with their itineraries. Harvey World's new website will also invite Harvey World Travel's customers to "Join Our World", where they can personalise their own database, where information pertaining to their travel preferences and interests can be displayed. Regular newsletters with the latest travel offers and information about holiday specials from their chosen Harvey World Travel franchisee will also be included as part of their personal newsletter. Australian Manager of Harvey World Travel, Mr Barry Mayo, said "Our new generation site will allow us to develop a closer relationship with our clients, which will encourage them to spend more time with us on-line or with our franchisees, while also allowing us to compile relevant information about our database". He added, "Our new e-commerce facility and website will provide excellent efficiencies in our operations, cut costs and be co-ordinated with our National Call Centre, which is currently being developed and will be launched later this year". As a bonus points provider with Qantas Telstra Visa Card and Telstra Visa Cardholders, Harvey World Travel will display the bonus points applicable to each of the special offers displayed on the home page. The Harvey World Travel franchise network currently has more than 430 outlets across the world, including 350 in Australia. The outlets generate annual network turnover of approximately $1 billion, and managing director, Mr Paul Fleming, said "our new internet operation will create more efficiencies for our franchisees, who will continue to provide value-added, travel packages through personal contact with clients - directed to them through our site". Mr Fleming said "Unlike many on-line internet travel agencies, which are still very labour intensive and locked into low margin, single bookings, Harvey World Travel is developing its internet strategy building on its base of our very strong agency network and brand name". The Harvey World network of agencies now have around 10 per cent of the Australian travel market, with a strong focus on the leisure travel sector. About 60 per cent of the total market accounts for overseas travel by Australians. International travel is expected to rise 4.5 per cent each year over the next 10 years. The group has a very strong and long standing relationship with Qantas, along with another 68-70 preferred suppliers covering all aspects of the travel business. For Further Information Call: Paul Fleming/Barry Mayo: Harvey World Travel: Ph: (02) 9567 6099
PRESS RELEASE: 22/6/2000 HARVEY WORLD TRAVEL LAUNCHES MULTI-MILLON DOLLAR CAMPAIGN WITH NEW DIRECTION AND ADVERTISING AGENCY The Southern Hemisphere's largest retail travel agency franchise network, Harvey World Travel Ltd, is capitalising on buoyant trading conditions with the launch next week of a national marketing campaign through its new advertising agency, Heartland. The group, which listed its shares on the Australian Stock Exchange late last year, returns to its very successful theme "The Travel Professionals" - replacing "Welcome To Our World" through its former agency. Marketing Manager of Harvey World Travel, Mr Mark Cario, said "Our travel professionals campaign returns the group to our successful roots, where we are accurately portrayed as selling value, as well as providing personal and professional travel advice - not just cheap airfares". Mr Cario added, "Since our competitive advantage is the knowledge, experience and personal service provided by our 1,000 Harvey World Travel consultants, our new campaign features a female consultant talking directly to the television viewer in much the same way as they would in one of our offices. He added, "At Harvey World Travel, our emphasis is on understanding our customers' needs and then making all of the arrangements necessary to ensure that their holiday is an enjoyable and memorable one". Last April, in national research conducted by Newspoll, Harvey World Travel had the highest brand awareness of any travel agency group in Australia and was also named as the travel agency that people were most likely to visit when planning a holiday. Harvey World Travel is quickly expanding with 11 new company owned or sponsored outlets to be opened in Australia by June 30, 2000, taking its total number of outlets to around 350. The group is currently posting very strong sales - especially in bookings for long-haul, high premium routes to Europe. For Further Information Call: Paul Fleming/Tim Dodds: Harvey World Travel: Ph: (02) 9567 6099
PRESS RELEASE: 7/6/2000 HARVEY WORLD TRAVEL OPENS BRANCH IN EAST TIMOR Newly-listed Harvey World Travel Ltd is one of the first Australian companies to establish a permanent operation in Dili, East Timor. Since November, 1999, Harvey World Travel's staff had been operating and living in shipping containers located in the grounds of the burnt-out remains of one of the former churches in Dili. Late last year, Harvey World Travel started arranging the transfer of refugees and United Nations' staff in charter flights to and from Darwin, while also operating all ground handling of commercial aircraft in and out of Dili Airport. Harvey World Travel's Darwin office managers and franchisees, John and Lorraine Thompson, are taking turns at living in Dili and have employed 12 locals to assist with office running and airport servicing of Air North and Qantas aircraft. There are up to 200 passengers currently flying into and out of Dili airport daily, including UN personnel flying back to their home countries on R&R. Managing Director of Harvey World Travel, Mr Paul Fleming, said "We are proud to have been among the first Australian companies to help the commercial resurgence of East Timor. However operating a business in Dili still has numerous problems, as there is very little infrastructure in place, with a lack of banking facilities and numerous communication problems still besetting the country". Having established an office in Dili, Harvey World Travel is now looking at expanding its franchised network into New Guinea. The company also operates in Australia, New Zealand, South Africa, Namibia, Botswana, Zimbabwe and Egypt. The Southern Hemisphere's largest retail travel agency franchise network, Harvey World Travel Ltd, is quickly expanding in Australia, with 11 new company owned or sponsored outlets to be opened in Australia by June 30, 2000 - taking its total number of outlets to over 450. For Further Information Call:
PRESS RELEASE: 29/5/2000 HARVEY WORLD TRAVEL EXPANDS ITS RETAIL NETWORK WITH STRONG SALES The Southern Hemisphere's largest retail travel agency franchise network, Harvey World Travel Ltd, is quickly expanding with 11 new company owned or sponsored outlets to be opened in Australia by June 30, 2000. Six new Harvey World outlets are already in operation, situated in the high growth areas of South East Queensland and Sydney, and they are reporting very strong sales - especially in bookings for long-haul, high premium routes to Europe. The other six outlets will be opened in high profile shopping centres and retail districts in South East Queensland, Sydney and South Australia before June 30. Harvey World Travel has about 350 company owned and franchise outlets across Australia. Managing Director of Harvey World Travel, Mr Paul Fleming, said "Harvey World Travel is fulfilling the plans outlined in our prospectus that we would use some of the proceeds from our recent, over-subscribed Initial Public Offering to investigate a range of growth opportunities in Australia, with the re-location and opening of outlets in high profile shopping centres and the expansion of the group's internet site/e-commerce activities". He added, "We are delivering ahead of schedule on our promise, with the addition of company owned and franchise outlets in prominent shopping centres, such as Westfield Chatswood, Robina Town Centre, St Ives Shopping Village and Westfield Chermside. We are expecting them to achieve sales and profit above our budget". Mr Fleming said, "In addition to our aggressive expansion of company owned outlets, we are in the process of re-engineering our internet site to incorporate a booking engine, which will be very user-friendly. The enhanced internet site will also create greater efficiencies for our franchisees". Directors are confident that the group's full year profit to June 30, 2001, will beat the prospectus forecast of $2.8 million, following the recent announcement that first half net profit of $1.57 million net profit exceeded the prospectus forecast for the period of $1.29 million by 22 per cent. For Further Information Call: Paul Fleming/Tim Dodds: Harvey World Travel: Ph: (02) 9567 6099
PRESS RELEASE: 24/2/2000 HARVEY WORLD TRAVEL BEATS PROSPECTUS FORECASTS The Southern Hemisphere's largest retail travel agency franchise network, Harvey World Travel Ltd, has exceeded its prospectus forecasts, with operating profit after tax rising to $1.57 million for the six months to December 31, 1999. Directors are confident that the group's full year profit will beat the prospectus forecast of $2.8 million, as the network is currently experiencing very strong booking levels and the group's recently established South African operations have begun making profit contributions. The $1.57 million net profit for the first half exceeded the prospectus forecast for the period of $1.29 million by 22 per cent, while the pre-tax profit of $2.4 million compares with the forecast $2.05 million. The result was struck on total revenue of $6.12 million. In line with prospectus forecasts, directors announced a fully franked dividend of 1c a share, to be paid on April 20, 2000, with earnings per share rising to 5c a share. The price earnings multiple of the group is currently more attractive than the 13 times quoted in the prospectus. During the half year, Harvey World Travel, which is the Southern Hemisphere's largest retail travel agency franchise network, successfully completed its $18 million Initial Public Offering and listed its shares on the Australian Stock Exchange during December. Managing Director of Harvey World Travel, Mr Paul Fleming, said "We are delighted to have beaten our prospectus forecasts and are pleased to report that nearly all of our 430 outlets are currently increasing sales, particularly to the long haul destinations of the US and Europe. The Harvey World Travel franchise network currently has more than 430 outlets across the world, in Australia, New Zealand and Southern Africa. Mr Fleming said, "Our encouraging growth in our newly opened network in South Africa is expected to continue, while full or partial acquisitions of offices in New Zealand are being sought to broaden our distribution base there." He added that Harvey World Travel was actively investigating a range of growth opportunities in Australia, with the re-location and opening of outlets in high profile shopping centres and the expansion of the group's internet site/e-commerce activities and national call centre. Mr Fleming said, "We are currently re-engineering our internet site to incorporate a booking engine, which will be used by our customers in predominantly single airfare and accommodation bookings. The enhanced internet site will also create greater efficiencies for our franchisees, who will continue to provide value-added travel packages". The Harvey World network of agencies now have around 10 per cent of the Australian travel market, with a strong focus on the leisure travel sector. For Further Information Call: Paul Fleming: Harvey World Travel: Ph: (02) 9567 6099
PRESS RELEASE: 18/11/99 HARVEY WORLD TRAVEL LAUNCHES $18 MILLION FLOAT The Southern Hemisphere's largest retail travel agency franchise network, Harvey World Travel Ltd, has today launched its $18 million float, with very strong demand expected from both retail investors and institutional investors. The group is offering 18 million shares, priced at $1 each (representing just under 50 per cent of the total capital) with listing on the Australian Stock Exchange expected in mid-December. The issue has been fully-underwritten by Bridges Financial Services Pty Ltd. Chairman of Harvey World Travel, Mr Norm Fricker, said "We are delighted to have already attracted a high level of interest in the offer, which comprises a part vendor sell-down worth $12.2 million and the issue of new equity worth $5.8 million. The net proceeds received from the fresh equity component will predominantly be used to fund a number of identified growth opportunities". The Harvey World Travel franchise network currently has more than 430 outlets across the world, including 350 in Australia, 40 in New Zealand, 47 in Southern Africa and single outlets in the US and Egypt. The outlets generate annual network turnover of $910 million, with Harvey World Travel deriving its principal income from franchise fees and from contracts with preferred suppliers. Harvey World Travel also owns a 50 per cent stake in major wholesale operation, Escape Holidays. Harvey World Travel is expected to lift its net profit from $2.12 million this year to $2.83 million in 2000, while network turnover is projected to grow to $1 billion next year. Mr Fricker said "The directors expect our 300 franchisees, who are driving the group's profit and revenue into the future, will become a significant new group of shareholders, and to encourage their participation, the vendor has entered a firm sub-underwriting commitment to hold $3 million worth of shares for their benefit". Managing director of Harvey World Travel, Mr Paul Fleming, said "We have a range of major growth opportunities currently in development to drive future revenue and profit, including the expansion of our franchise network, as well as the re-location and opening of outlets in high profile shopping centres".
He added, "Another important development is in our internet booking system, which will be re-launched next year with a direct booking engine, which will be used by its customers in predominantly single airfare bookings. This will create more efficiencies for our franchisees, who will continue to provide value-added, premium travel packages through personal contact with clients". The group's internet web site grew from 5,115 user sessions in March, 1999, to 10,988 sessions in August, with the growth trend continuing. Mr Fleming said "Unlike many sole internet travel groups, which are still very labour intensive and locked into low margin, single bookings, Harvey World Travel is developing its internet strategy with the base of our very strong agency network and brand name". Harvey World Travel is also developing a centralised, after hours call centre, to complement its existing toll-free phone number. The directors of Harvey World Travel forecast an annualised dividend of at least 5c a share, with earnings per share forecast at 7.6 cents a share in the year to June 30, 2000. The Harvey family first established Harvey World Travel 38 years ago in Cronulla, and its franchisees purchased the business from them in 1981. In 1988 the group opened its 100th outlet, and reached 400 outlets last year. The Harvey World network of agencies now have around 10 per cent of the
Australian travel market, with a strong focus on the leisure travel sector.
About 60 per cent of the total market accounts for overseas travel by
Australians. International travel is expected to rise 4.5 per cent each
year over the next 10 years. The group has last month re-structured its board to eight directors, including Mr Fricker, a former senior executive at Brambles Australia Ltd and Qantas, and non-executive director Mr Don Morris, former chairman of the Australian Tourist Commission. For Further Information Call: Paul Fleming Greg
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