Tour operator Thomas Cook Group Plc. (TCG.L,TCKGY.PK) Thursday reported a narrower loss for its first half, reflecting improved gross margin, as well as impairment charges recorded last year. Half-yearly revenues declined from the prior year. The company also announced a 1.6 billion pounds capital refinancing plan and said the board is confident of a 'satisfactory' result for the full year.
Looking ahead, the firm aims sales to improve by at least 3.5 percent on average per year from fiscal 2013 to fiscal 2015. The shares rose about 13 percent in the morning trade on the London Stock Exchange.
Thomas Cook noted that its capital refinancing plan will help reduce a very significant debt that it inherited, lengthen its repayment profile and consequently help it deliver full benefits of its strategic plan.
Harriet Green, chief executive of the company stated, "We look forward to continuing the rapid transformation of the Group so that we fulfil the potential of the Thomas Cook brand for our customers, suppliers and employees."
The firm stated that bookings for Summer 2013 season are developing well with about 60 percent of planned capacity sold, 2 percent higher than last year.
For the six months ended March 31, the company posted loss before tax of 390.9 million pounds, narrower than 584.1 million pounds in the previous year. Adjusted for separately disclosed items, underlying loss before tax was 275.6 million pounds, compared to a loss of 313.9 million pounds last year.
On a per share basis, loss attributable to equity holders narrowed to 31.9 pence from 68.2 pence per share in the prior year. The company said it has restated its prior-year results.
Total separately disclosed items were 115.3 million pounds, lower than 270.2 million pounds in the prior year. Impairment of goodwill and amortization of business combination intangibles in the prior-year period totaled 204.9 million pounds.
Revenues for the period declined to 3.22 billion pounds from 3.31 billion pounds in the preceding year. Underlying gross margin on a like for like basis improved by 110 basis points to 20.7 percent.
The company aims sales to improve by at least 3.5 percent on average per year from fiscal 2013 to fiscal 2015, for underlying Group gross margin to improve by at least 1.5 percentage points by fiscal 2015, and for underlying UK EBIT margin to be greater than 5 percent by fiscal 2015.
TCG.L is currently trading at 163.3 pence, up 18.6 pence or 12.85 percent, on a volume of 19.84 million shares on the LSE.
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