Thomas Cook gets north European boost but hit by currency volatility
THOMAS Cook yesterday reported trading in line with expectations, with the summer of 2015 more than 50 per cent sold. The travel firm continues to build on last year with Thomas Cook’s Concept Hotels growing 20 per cent from the previous year.
Bookings at thomascook.com have climbed 10 per cent. However, the company took a hit with currency woes. The group said: “If current rates for euro and Swedish krona were maintained throughout the remainder of [fiscal year 2015], there would be a negative year-on-year translation impact of approximately £25m.”
Yesterday, the former managing director of Tui UK Chris Mottershead was appointed as business development director. He said: “They [Thomas Cook] have already started to introduce differentiated product; having unique hotels that are specific to Thomas Cook is critical.”
Numis expected an upbeat report with a strong rise in bookings. It is still relatively recently that Peter Fankhauser took on the top job at the company after the surprise departure in November of Harriet Green, who led a significant cost-cutting drive.
When Green joined in 2012, shares had been around 15p. When she left in November, they were trading at 137p. The firm enjoyed a big share price boost after Chinese billionaire Guo Guangchang took a five per cent stake at the beginning of the month.
Fankhauser said: “Our bookings for the full year are developing well, especially in the UK and airlines Germany. The tough trading conditions we reported previously in some markets are showing early signs of improvement.” Shares closed up 1.82 per cent.