Thomas Cook posts full year operating profit

Dino D'Amore
By Dino D'Amore November 29, 2013 12:10

Thomas Cook posts full year operating profit

For the first time since 2010, Thomas Cook has posted a full-year operating profit, thanks to the ongoing success of its recovery plan that has cut debt, shed staff and sold no-core assets. Revenues were 1% higher at £9.3bn, while earnings before interest and tax were £13 million, compared with a loss of £170 million last year. Underlying operating profit rose 48.6% to £263 million, which exceeded a company supplied consensus forecast of £251 million.

The group raised £431 million via a rights issue that formed part of a £1.6bn capital restructuring earlier this year. Net debt was £421 million at the end of September, compared with £788 million during the same time last year. Pre-tax losses were £207 million, compared with a loss of £590 million last year.

Further cuts are expected. Thomas Cook has already identified £40m of additional cost cuts and savings, although no details were given on whether this would include further job losses.

Harriet Green, chief executive of Thomas Cook, has stated that the company has suffered from the Egyptian crisis as well as upheaval in Greece, which compounded the effect the Eurozone crisis and high fuel cost had on sales figures.

Dino D'Amore
By Dino D'Amore November 29, 2013 12:10
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