Thomas Cook Sees Profit Slump in UK Division

Thomas Cook Sees Profit Slump in UK Division

Thomas Cook Sees Profit Slump in UK Division

The company also blamed the disruption caused by Hurricane Irma. Adjusted earnings before interest and tax for the United Kingdom unit fell to GBP52 million from GBP87 million. Underlying earnings per share were 9.3 pence, compared to 8.1 pence a year ago.

Underlying profit in the company's United Kingdom arm fell by £34 million during the period, despite a 3 percent rise in revenues, rippling across the group as overall profit margin declined 23.4 percent to 22.1 percent.

But Thomas Cook gave some hope that trading was turning around as holidaymakers return to "more profitable" destinations Egypt and Turkey.

Thomas Cook said: "In response, our United Kingdom tour operator has implemented a set of actions to improve profitability".

There was better news for Thomas Cook in its airline division and in its other European markets.

The company said it planned to take legal action against people who make false illness claims. In the recently ended financial year, web bookings grew by more than 25% and the company closed over 100 stores, the travel company said.

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One positive element was the performance of the group's airline business, which improved profits by 24 million pounds in the year, helped by a recovery for German carrier Condor. On an underlying basis stripping out exceptional items, profit rose to GBP186.0 million from GBP162.0 million.

One of the world's largest United Kingdom -based travel agencies, Thomas Cook, reported an 8 percent rise in full year earnings, helped by a turnaround of its German airline Condor and improved customer demand, adding that bookings for Turkey and Egypt in summer 2018 were already very strong.

Net debt at the end of the year stood at only GBP40.0 million, a considerable reduction from GBP129.0 million a year earlier.

2017 was a milestone year in the strategic development of Thomas Cook.

The groups chief executive Peter Fankhauser vowed to boost efforts to overturn the downturn across its United Kingdom business, he said: "While conditions are challenging in the United Kingdom, we have implemented a set of actions to improve performance".

Chief executive Peter Fankhauser promised to arrest the slide in the UK: "While conditions are challenging in the UK, we have implemented a set of actions to improve performance". Further, the company lifted its final dividend, and said it is well-positioned to achieve a full year operating result in line with market expectations, based on current trading.

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