Thomas Cook outlines strategy
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UK operator Thomas Cook has today revealed plans to try and save the business – involving the sale of ‘non-core’ assets in order to raise between GBP100-150 million.
Specific details of which arms of Thomas Cook are to be sold off haven’t yet been released however the company did release a statement today confirming trading as being “robust”.
In a pre-half year results statement this morning, the company said: “Trading continues to be robust and summer trading is progressing well with improved margins. The outlook for the full year continues to be encouraging, underpinned by the on-going delivery of the Group’s Transformation actions.” Half year results will be made public in May.
The company’s chief executive Harriet Green went into further detail regarding the firm’s impending strategy:
“Our business transformation plans are ahead of schedule and already delivering substantially improved performance, which resulted in our recent return to the FTSE 250.
“We have exceeded our initial commitments and today announced a further GBP50 million of cost out actions, bringing the total profit improvement actions identified already to GBP350 million, GBP290 million of which is still to come.
“Stabilising the business has been our priority through addressing our cost and cash challenges, and strengthening the leadership team to create a more effective, aligned organisation focused on rigorous execution.
“We are excited to now reveal our new strategy based on four cornerstone principles; delighting customers with trusted, personalised holiday experiences through a high-tech, high-touch approach.
“Based on comprehensive consumer research we aspire to occupy a unique position in the market through our new strategy, deliver industry leading margins and customer loyalty, whilst maintaining consistent quality that can be trusted.
“We will expand our already successful hotel concepts; and build a new portfolio of flexible, trusted products and services; creating a single gateway for customers to access personalised recommendations, specifically tailored to meet their needs.
“The operational credibility of this strategy rests on the success of our self-help measures to date, our trusted brand and the clear targets and KPI’s against which we are ready to be judged.
“We have real options now, with the prospect of delivering improved revenues, strengthened gross margin, better cash flow and disposal opportunities, to build a strong and exciting future for the Thomas Cook Group, worthy of our customers and our heritage.”