Thomas Cook Group - Hot British summer may impact performance

Tuesday, 31st July 2018 09:11 - by Rajan Dhall

Thomas Cook today have produced a stellar set of results, Q3 revenue growth is up 10% to £2,479 million, Summer 2018 bookings up 11% on last year with 79% of programme sold. However, gross profit is down 3% to £443 million and the main area the market will be focused on is ''we now expect growth in full-year underlying operating profit to be at the lower end of market expectations'' it has been said this was due to ''the sustained period of hot weather in June and July has led to a delay in customer bookings''

Also in the companies financial section of the report it seems that net debt on the 30 June 2018 was £468 million, that is an increase of £64 million compared to the same period last year. All in all, I think we have enough here to spook investors. 

Looking at the weekly chart below, it seems there was a firm rejection of an old intraday trendline from the higher timeframe or a zoomed out chart. It will be interesting to see if this level can hold as its close to the next price support at 83.65. It is quite possible we could gap down but there are some strong support levels to be aware of.