Europe casts cloud over Thomas Cook turnaround
The group said its turnaround progress remained on track but shares in the FTSE 250 Index company were down by 5 per cent after the German guidance.
It said bookings in the country had been strong but recently moderated as a result of faltering consumer confidence due to geopolitical events as the EU considers adopting further sanctions against Russia.
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Hide AdThomas Cook said: “As a consequence, our German business has experienced weaker margins in the fourth quarter of the year due to a combination of reduced demand and excess market capacity.”
Overall, the company said it was on track for a ninth consecutive quarter of increased profitability in the final three months of the financial year to September 30.
Thomas Cook, led by chief executive Harriet Green, is half way through a long-term plan to drive savings and return the group to profit after its near collapse in 2011 as a result of overcapacity in the holiday market.
It has significantly reduced net debt from £788m at the end of 2012 to between £300m and £350m by the end of this financial year.
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Hide AdAll of its businesses are expected to deliver quarterly results ahead of last year.
UK summer capacity is 92 per cent sold, the same as this time last year, with average selling prices down 4 per cent.