London (AFP) - British travel firm Thomas Cook on Thursday announced a large reduction in annual losses as a result of deep cost-cutting.
Losses after tax dropped to Â£199 million ($324 million, 239 million euros) in the year to the end of September from Â£585.7 million in 2011/12, Thomas Cook said in a results statement.
"I am delighted to report that the first 365 days in the transformation of Thomas Cook have been a great success," said chief executive Harriet Green.
"We've taken out more cost more quickly than originally planned," she added.
The company has earlier this year announced plans to axe 2,500 jobs in Britain as part of its turnaround efforts after being plagued by the eurozone debt crisis, unrest in Egypt and high fuel costs.
"Compared to last year, (current) winter bookings have been adversely impacted by social unrest in Egypt, which has resulted in significantly reduced demand to that destination," Thomas Cook said on Thursday.
The company added that earnings before interest payments and tax (EBIT) came in at Â£13 million compared with a loss of Â£170 million one year earlier. It was the group's first operating profit since 2010.
Annual group revenue meanwhile edged up 1.3 percent to Â£9.315 billion.
<b>Sunny prospects for Thomas Cook as it delivers a profit by Harriet Green November 28, 2013, 8:45am</b>
Things are starting to look up for Thomas Cook as the travel company saw an operating profit for the first time since 2010, as the first year of its turnaround plan starts to take off. Shares have rocketed this morning on the news, up over 11 per cent, putting it at the top of the FTSE 250 risers.
Underlying operating profit was up by 49 per cent to £263m. Chief executive Harriet Green, for whom this was her first full year in charge, said: "We've taken out more cost more quickly than originally planned. The balance sheet has been strengthened; the £1.6 billion recapitalisation has been completed, maturities extended and we have almost halved our net debt."
That's exactly what the wife just asked for, lol I will enjoy myself, always do!!!!!!!! Should be my last post for a while, just opened the gate, so just knocking an extremely large whiskey back, only fair it cost £17.50 Per head
Half a bottle gone now , hick up!!! Looking at the SP it's now showing 16669.6660000 I must get my eyes checked out lol
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