Thomas Cook’s group chief executive Harriet Green said the group’s turnaround has “only just begun” as it announced a rise in underlying EBIT and strengthened balance sheet within the last year.
In the first year under Green’s transformation plans the group’s underlying EBIT had improved 49% to GBP263 million, with its net debt more than halved.
While still posting a loss after tax ofGBP207 million for the year up to 30 September 2013, it is an improvement on the GBP590m loss posted at the same time in 2012.
Signalling further positivity for the years ahead, Green said the company will now focus on new product revenue; Wave 1 cost out and profit improvement and cash conversion as its main targets for 2015.
It also hopes to replicate the same cost out and profit improvements in a second wave due to be delivered by 2018.
“I am delighted to report that the first 365 days in the transformation of Thomas Cook have been a great success. We’ve taken out more cost more quickly than originally planned. The balance sheet has been strengthened; the GBP1.6 billion recapitalisation has been completed; maturities extended and we have almost halved our net debt. Finally and significantly, operational cash flow is gathering momentum,” said Green.
“Yet the implementation of our strategy for sustainable profitable growth has only just begun. With our systemised approach to business, our products, people and processes and our powerful unified brand, we are confident of delivering significantly more,” she added.