Thomas Cook plc, Europe's second largest tour operator, has unveiled a £398 million pre tax loss for 12 months to 30 September 2011 on revenues of £9.81 billion, compared to a profit of £42 million on revenues of £8.89 billion a year earlier, the company said in a statement.
• Revenue increased 10% (8% at constant currency) to £9,809m on volume, price and mix gains and benefits from acquisitions;
• Good performances in Central Europe, Northern Europe and Airlines Germany offset by a fall in UK profit and the impact of MENA disruption, particularly in France resulting in a 16% reduction in underlying profit to £304m;
• Exceptional charges of £573m resulted in a loss before tax of £398m (2010: £42m profit). The charges are largely non-cash and include £428m of impairments and write-downs. Cash exceptionals were £90m (2010: £158m);
• Free cash inflow improved by £50m to £18m despite the fall in profits;
• Implementation of UK turnaround plan underway. Turnaround expected to deliver £110m annualised improvement in profitability, following a phased build-up over three years;
• Further progress on asset disposals made, with the sale of five hotels in Spain, that will result in an estimated net debt reduction of £81m;
• Cautious stance on winter capacity taken in UK, Central and West & East.
Sam Weihagen, Group Chief Executive, Thomas Cook Group plc said: “This has been a very challenging year for the Group, despite which we still delivered an underlying operating profit of over £300m. We have instigated significant management changes and implemented a turnaround plan in the UK to address our areas of underperformance. We continue to take action to substantially strengthen the balance sheet and the Board is undertaking a full strategic review. I am confident that these changes will improve profitability and build a stable foundation from which to rebuild shareholder value. Customers have been very supportive in recent weeks and are continuing to book with Thomas Cook. Bookings outside the UK were broadly unaffected by news of our refinancing and in the UK bookings have recovered well. For over 170 years Thomas Cook has provided customers with fantastic holiday experiences and we will continue to do so.”
