Thomas Cook losses increase
It’s not looking too promising for Thomas Cook. A BBC news report has told how the company is continuing to struggle with debt.
Thomas Cook has seen its half-year losses increase sharply after a "difficult" six months, but says it is taking "decisive action" to improve its position.
The travel group reported a pre-tax loss of £713m in the half year to 31 March, up from a £269m loss last year.They havejust received a £1.4bn refinancing package which extends their prepayment terms for the next 3 years.
Thomas Cook also secured shareholder approval earlier this week to sell its investments in a Spanish hotel business, and backing for the sale and leaseback of some of its aircraft. The company said on Thursday that when taken together these moves would add £239m to its finances.The firm has also agreed to sell its Indian business for £94m.
Part of the reason for the big increase in Thomas Cook's losses was a one-off charge of £300m after it was forced to write-down the value of parts of its business.When this and other exceptional items are pulled out, the firm's underlying pre-tax loss for the six months to 31 March was £328m, compared with £269m a year earlier.The company is now waiting for its new chief executive Harriet Green to take up the job in July, after her appointment was announced last week.
Thomas Cook issued three profit warnings last year, and was forced to take an emergency £200m loan.Its revenues for the six months ending 31 March totalled £3.52bn, up from £3.43bn a year earlier. This will have an impact on various organisations within the logistics industry,who are contracted to assist in the storage and transportation of the promotional marketing material needed to successfully run the travel agency. You don’t realise how many businesses will be affected if Thomas Cook cannot find a solution to their money problems!
June 1, 2012 | Share: