Technology supplier Anite might be seeing strong results as a group, where it operates in multiple industries, but its travel division is suffering.
The company is the major IT supplier to tour operating giant TUI Travel in Europe and has a number of other major travel clients.
But behind the 19% increase in revenue across the group to £93.7 million for the 12 months ending 30 April 2011, travel is performing "below expectations", the company said this week.
The travel division saw revenues slide by 13% to £20 million and adjusted profit slump by a quarter to £4.2 million.
The company says the order book us showing better signs, with new business up 17% to £34 million on the previous year, buoyed by the signing of major deal with TUI Travel for the @comRes reservation system.
Central to the poor performance of the travel division is a "decline in legacy managed services and maintenance revenues," Anite says, with the failure of tour operators Globespan and Goldtrail impacting year-on-year revenues.
The financial report says:
"In the travel market in recent years, a combination of consumers having tighter budgets; natural events, such as volcanic ash clouds, earthquakes and tsunamis; political unrest; and rising oil prices have put the leisure travel industry under pressure, and many smaller operators have struggled to survive or have gone out of business.
"The resulting consolidation means that, while the market itself has not shrunk, the number of operators has."