Another day, doh!!! ..... Good points Mogie and Miss G, although you were "shouting" again last night lol ! ....yesterday market sensed some weakness and exploited it as they will do, Harriet not at fault for that., however .......... and for Fryston ..........
The q&a at the presentation wasn't quite as "polished" and dare i say "controlled" as the one i listened to previously, the Big Boy Brokers asked some possibly searching questions, about the future prospects and in particular about poorer UK current performance than expected , the responses were slightly defensive and indeed slightly techy on occasions, mainly from Michael (FD) , which produced a couple of what i would call "awkward" moments and this is where Harriet can do something , "accountants" are possibly not known for their jolliness and presentation skills, but if you are gonna put them up in front of an audience , they need to be far more slicker and engaging. There were some little nuggets that came out during this, like the future improved cash ballance that would lead to div's being paid and with the improved credit rating, re-visiting the funding options at reduced rates, which would improve profitability , these should have been fully highlited in the main presentation , not dragged out in the q&a . ........
So, it may be unfortunate, but "spin" is everything and this wasn't "spun" quite as effectively as it could have been , cos there was a lot of good news in there , achieved all their targets so far and no reason why they can't continue to do so in future :-)
Good morning. And with the significant re engineering of distribution strategy I.e. a TOTAL overhaul of digital strategy, and investment behind brand strategy, I'm convinced that cost management is not the only strategy. What perhaps needs some greater focus in coming years is product strategy as we continue to operate in an increasing unpredictable global world.
Egypt dents Thomas Cook TIP UPDATE Thomas Cook Group PLC (TCG) GROWTH MEDIUM RISK
Our previous tip WE SAIDBuy WHEN13 October 2013 PRICE145p TIP PERFORMANCE TO DATE+16% One might have expected Thomas Cook (TCG) to paint much the same picture of trading as its rival TUI Travel (TT.), which this month reported buoyant demand from British holidaymakers. On the contrary, Thomas Cook said its UK business was harmed by ongoing political tension in Egypt. Instead continental Europe, specifically Germany, performed slightly better.
Chief executive Harriet Green said far fewer UK customers chose to travel to Egypt over the winter as a result of the country's political problems. But next year should be better. The release of multiple new products into the UK market, no doubt combined with the early effects of the recovery in real earnings, has so far driven early winter bookings for 2014/15 11 per cent higher.
The group also expanded on ‘Wave 2’ of its turnaround plan, which was first announced last November and aims to deliver £400m of savings by 2018. Four regional businesses will be amalgamated into one unit and 17 web platforms scaled down to one. Website bookings grew to 39 per cent of the total in the first half - just shy of the annual target of 40 per cent - about a sixth of which were through mobiles or tablets.
Brokerage Investec expects pre-tax profits of £209m for 2014, giving EPS of 11.4p - up from £118m and 4.9p.
THOMAS COOK (TCG) ORD PRICE: 168p MARKET VALUE: £ 2.45bn TOUCH: 167-168p 12-MONTH HIGH: 190p LOW: 110p DIVIDEND YIELD: NA PE RATIO: NA NET ASSET VALUE: 6p* NET DEBT: £811m Half-year to 31 March Turnover (£bn) Pre-tax profit (£m) Earnings per share (p) Dividend per share (p) 2013 3.22 393 -23.9 nil 2014 3.01 366 -25.3 nil % change -7 -7 - - Ex-div: n/a
*Includes intangible assets of £2.99bn or 205p per share
SHARE TIP UPDATE: There's still more work to be done at Thomas Cook. But with £400m worth of cuts already earmarked and good growth in the digital business, the company's self-help recovery looks well entrenched. The shares have risen 16 per cent since our tip (Buy, 145p, 3 Oct 2013), but still offer value on 16 times forward earnings. Buy.
Only those in TCG will know what this is longer term so anything posted on here must be guess work. However, I do agree with comments below that once cost savings have been achieved the problem comes if that has been the only strategy. Time will tell. Good luck to all holders especially the recent buy-ins. You old stagers should still be in big profit territory with this one.
Well said!! Totally agree with you, this last couple of years has been hard for all in TCG with job losses etc, but HG knows where she is going and staff morale is going up, my daughter has worked for TCG since Manny's decision to take over My Travel/Going Places, where she worked for many years. We need to support not run HG down when there is a bit of bad luck, most shares were in the red today, we just copped it little worse!! As one of the old timers on this board would of said:: it's a good topping up opportunity, positive thoughts, GLA.
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