Loading

Thomas Cook: Growth strategy & updated profit improvement plans

Direct News Source

13-Mar-2013 The Thomas Cook Group plc today announces its new profitable growth strategy, focused on simplification, web innovation, flexible new products and services, enabled by rigorous execution and an integrated IT platform. Building on its trusted brand and 171 year heritage Thomas Cook will deliver personalised holiday experiences through a high-tech, high-touch approach.

Financial Highlights

  • Business Transformation gaining momentum. A further £50m of cost-out actions identified bringing the total profit improvement actions so far to £350m with more to come.
  • Significant progress achieved in embedding improved working capital management practices contributing to c£150m improvement in average working capital.
  • UK Turnaround on track; thorough UK restructuring underway to re-shape the organisation to meet customer need with a target to deliver UK EBIT margin in excess of 5% by FY15.
  • Northern and Central Europe continue to build on their industry leading positions.
  • Executing on one Group-wide Airline Segment, improving costs, quality, reliability and customer experience to build a stronger business.
  • Transformed approach to hotel purchasing to utilise Group scale, already delivering tangible benefits.
  • Non-core disposal programme underway with the opportunity to realise gross proceeds of £100- £150m.