S8 defends position despite raid

Jenny Hutson

Australian fair trading authorities have raided unit complexes managed by travel company S8, which is taking over Gullivers Travel.

More than 50 police and Office of Fair Trading officers descended on nine complexes, executing warrants to search and copy data from the company's computer records, the Gold Coast Bulletin reported yesterday.

Most of the properties, it believed, were under the S8 umbrella.

The action followed accusations of S8 double-dipping on fees by redirecting holidaymakers to book holiday units through its retail and wholesale businesses including Harvey World Travel, the Gold Coast Booking Centre, the Sunshine Coast Booking Centre, and Accom Noosa.

S8's share price on the Australian Stock Exchange fell 18c yesterday to A$3.25, despite an announcement that the company's full-year result would be 10 per cent ahead of guidance with an A$20.1 million net profit.

S8 chairwoman Jenny Hutson told the Herald yesterday the Fair Trading Office investigation would show the company had complied with its legal obligations.

"We are a professional organisation that totally complies with its legal obligations," said Hutson. "In a sense we welcome what they've done because it will finalise the issue in the manner we've outlined, which is we are in total compliance."

She said the issue first came to light several months ago and yesterday's share price drop was related to "inappropriate" media coverage.

"The market is concerned about what that all might mean and the share price has come off a bit. S8 has always complied with its obligations and will continue to. We think that history will show that we are on the right side of the ledger in every sense."

Hutson said an election was imminent and the company was caught up in a "Queensland political kerfuffle".

"We've got a minister who has announced an investigation by a department in a way we think is politically driven," she said. "We happily have provided them with every piece of information they've requested. They did not need to go about it this way."

S8 gained control of Gullivers on Monday, gaining 55.2 per cent six days after its $2.35-a-share offer opened.

Gullivers independent directors recommended that shareholders accept S8's offer, closing on September 10, which was shown to be at the top end of the valuation range.