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Thomas Cook sees losses widen as it struggles with debt | Thomas Cook sees losses widen as it struggles with debt |
(40 minutes later) | |
Thomas Cook has seen its half-year losses increase sharply after a "difficult" six months, but says it is taking "decisive action" to improve its position. | Thomas Cook has seen its half-year losses increase sharply after a "difficult" six months, but says it is taking "decisive action" to improve its position. |
The travel group reported a pre-tax loss of £713m in the half year to 31 March, up from a £269m loss last year. | The travel group reported a pre-tax loss of £713m in the half year to 31 March, up from a £269m loss last year. |
The company has struggled with high debt levels and the wider downturn in the global travel sector. | The company has struggled with high debt levels and the wider downturn in the global travel sector. |
Earlier this month, Thomas Cook secured a £1.4bn refinancing package. | Earlier this month, Thomas Cook secured a £1.4bn refinancing package. |
This deal gives the company a further three years to repay its debts. | This deal gives the company a further three years to repay its debts. |
Thomas Cook also secured shareholder approval earlier this week to sell its investments in a Spanish hotel business, and backing for the sale and leaseback of some of its aircraft. The company said on Thursday that when taken together these moves would add £239m to its finances. | Thomas Cook also secured shareholder approval earlier this week to sell its investments in a Spanish hotel business, and backing for the sale and leaseback of some of its aircraft. The company said on Thursday that when taken together these moves would add £239m to its finances. |
The firm has also agreed to sell its Indian business for £94m. | The firm has also agreed to sell its Indian business for £94m. |
'Re-energise' | |
Part of the reason for the big increase in Thomas Cook's losses was a one-off charge of £300m after it was forced to write-down the value of parts of its business. | |
When this and other exceptional items are pulled out, the firm's underlying pre-tax loss for the six months to 31 March was £328m, compared with £269m a year earlier. | |
The company is now waiting for its new chief executive Harriet Green to take up the job in July, after her appointment was announced last week. | |
Interim chief executive Sam Weihagen said the company was moving ahead with efforts to "re-energise our business and begin to rebuild profitability, reduce debt, and continue to provide a fantastic holiday experience for our customers". | |
Thomas Cook issued three profit warnings last year, and was forced to take an emergency £200m loan. | |
Its revenues for the six months ending 31 March totalled £3.52bn, up from £3.43bn a year earlier. |
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