Thomas Cook reveals better than expected profits
Against a backdrop of very difficult trading conditions the holiday giant Thomas Cook revealed full year profits of £308.2 million, which were down just 0.4% on last year. Many analysts had expected a fall in the region 3% and these figures have been welcomed with open arms by those who had concerns about the company. However, what does the future hold for the holiday sector?
Despite the fact that the company has been trading better than many people had expected, even Thomas Cook has flagged the fact that 2010 will be a very difficult year and could indeed be worse than 2009 with unemployment set to rise. There are also other external factors such as the weakness of the pound and the football World Cup next summer which will detract potential customers from leaving these shores.
There is also some concern about the company's £1.6 billion banking facility which expires in May 2011 although it looks as if this will be re-negotiated in the summer of 2010. Far too many companies have left their refinancing far too late and put themselves in very difficult positions, but it would appear that Thomas Cook has "everything in hand" and solid plans for the future.
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