Thomas Cook’s summer bookings leave Numis upbeat
Thomas Cook’s said today that, while growth’s on track, continued unrest in Egypt made winter trading difficult, describing performance as satisfactory.
But Numis has stressed that the interim management statement reads well, and it’s expecting it to fuel “good short-term momentum” in shares.
The travel provider saw 93 per cent of its winter season booked, but is feeling more positive about its summer holidays, which are already 50 per cent sold (one percentage point higher than last year).
From the statement:
Compared with last year, margins are expected to improve more than average selling prices, reflecting enhanced yield management and the benefits of our cost out and profit improvement programme, which is delivering ahead of schedule.
The company adds that its new product development is progressing well, and higher margin concept hotels are seeing bookings up 49 per cent year-on-year.
Thomas Cook’s reporting its half year results on 15 May. They’ll be accompanied by "details of further new product development and the second wave of our profit improvement plans."
Numis reiterates its Hold rating on stock, with a target price of 175p.
Shares fell more than two per cent at the open, and are now down 1.5 per cent.
Source: Google