City File: Airtours

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The Independent Online
WITH Airtours' bid for Owners Abroad now over, it looks as if the stock market is overvaluing Airtours shares. This year's profits will probably be only slightly higher than last year's - about pounds 38m compared with pounds 36.5m.

The big growth in Airtours's business has slackened, some pounds 8m in bid costs will come straight out of profits, and Pickfords (the in-house travel agency) is barely expanding its market share. The group's shares rose to 345p during the bid, but the proper level is probably nearer 300p.