Member Info for chumba

Delivery of the New Shares to investors is expected to occur on 24 May 2022. Hopefully these will lie in sticky paws and the sp will begin to stabilise.

Tav...well interest rates are rising, but so is the need for pax to go jetting off on their hols. At least TUI is supported by the Bundestag, so the bright side is that it probably won't go under. However, my concern is that at some stage, they will demand full repayment and there will be another cash call. But, hopefully we have seen the bottom and I took advantage of this yesterday to buy more.

3. TUI is dependent on state aid

In addition, there is state aid, without which TUI would already no longer exist. The group is currently trying to reduce its shareholding and credit lines through capital increases. The step is necessary because profits are lacking. Most recently, the group took in 425 million euros. The credit line is to be reduced by 336 million to 2.1 billion euros. Nevertheless, it will probably take some time until 4.3 billion euros are balanced.
Conclusion

TUI therefore needs a sustained turnaround in earnings and profitability to drive its share price sharply higher.

TUI is highly indebted

If you navigate to "Investors" on the TUI website, you can download the report on the second quarter of 2022. On page 24 you will find the balance sheet.

As of the end of March 2022, TUI shows cash and cash equivalents of 1,522.6 million euros. This compares with non-current liabilities of 4,837.2 million euros. Total debt stands at 14,522.1 million euros. The current equity ratio is only 1.47%.

Low debt can be useful for business expansion. However, if it turns out to be too high, the dependence on capital providers increases. Those who are now thinking about the soon to rise interest rates know that TUI's interest burden will thus also increase in the future. Too much debt is a vicious circle from which it is difficult to escape. This is the first weak point.
2. still losses despite travel boom

The real problem can be read on page 22. TUI increased its turnover from 248.1 to 2,128.4 million euros in the second financial quarter of 2022. The group has already cut costs during the Corona crisis. Nevertheless, TUI posted a loss of -321.4 million euros.

If 2.1 billion euros in turnover is not enough to be profitable, then even higher sums are usually not enough to make a profit. In the entire first half of 2022, the development becomes even more obvious. Turnover rose from 716.3 to 4,497.6 million euros. But even this boom in demand was not enough, so the bottom line was a loss of -707.9 million euros.

Shares follow the operating profit trend. Since TUI is still making losses, the share price is falling despite the travel and demand boom.

TUI wants to cut costs by a further 20% this financial year. This should make a positive adjusted EBIT possible in the second half of the financial year. However, it remains to be seen whether a positive net result will actually be achieved in the end. The past ten years show that TUI is unprofitable overall. At best, a profit margin of 3.9% was achieved.

Translated with www.DeepL.com/Translator (free version)

I must have topped up on the Poppy spike yesterday!

Tom Rob Smith in his grim books gives a good account of the Russian mentality.

OK...ex serviceman here (and not RAPC), but how the blazes can you trumpet a profit when you have made a loss of £56.7 million? No wonder PWC had problems.

Financial performance
All-in-all, we continued to fire on almost all
cylinders in 2021, with like-for-like revenue and
gross profit/net revenue up 52.4% and 43.7%,
two-year simple stacks for gross profit/net
revenue up 63.1%, the one feature we would
have liked to improve on being the Operational
EBITDA margin, which was impacted by the
significant investment required to bed down
our growth.
• Billings1 were £1.3 billion, up 99.4% on a
reported basis, up 66.8% like-for-like 2 and
up 67.1% pro-forma 3 . Controlled billings, that
is billings we influenced in addition to billings
that flowed through our income statement,
more than doubled to approximately
£5.4 billion (2020: £2.3 billion).
• Revenue was £686.6 million, up 100.4%
from £342.7 million on a reported basis,
up 52.4% like-for-like, and up 53.8% on a
pro-forma basis.
• Gross profit was £560.3 million, up 89.8%
reported, up 43.7% like-for-like, and up
45.7% pro-forma.
• Operational EBITDA 4 was £101.0 million, up
62.4% reported, up 11.9% like-for-like, and
up 16.8% pro-forma.
• Operational EBITDA margin was 18.0%,
down 3.0 margin points versus 21.1% in
2020, down 5.1 margin points like-for-like
and 4.6 margin points pro-forma, reflecting
investment ahead of the revenue curve in
major new ‘whopper’ clients, new areas
of organic growth, such as connected
TV, and financial, risk and management
infrastructure to manage future growth.
• Operating loss was £42.1 million, after
£136.9 million of adjusting items, principally
acquisition and amortisation expense,
versus an operating profit of £8.1 million in
2020. Adjusted basic net result per share
was 13.0p versus 7.9p in 2020, reflecting a
lower effective US tax rate for 2021.
• Statutory loss for the period was
£56.7 million, versus a reported £3.9 million
(loss) in 2020, after charging under IFRS
£72.3 million of combination payments,
which were tied to the continued
employment of key share-owning principals
in combinations. Although such contractual
provisions impact the income statement,
your Board believes this is a better
commercial approach given the professional
service nature of our business.
• Basic and diluted net loss per share were
10.3p, versus 0.8p (loss) in 2020.
• Year-end net debt 5 was £18.0 million
(2020 net cash: £51.6 million), despite
making £96.6 million in cash combination
payments and reflecting cash flow from
operating activities with 54.1% operating
cash flow conversion from EBITDA.
• Operational EBITDA margins improved in
the second half from 14.5% in the first half
to 20.6% in the second half giving 18.0%
for the full year, as the first half increased
investment in our people yielded higher
productivity in the second half.
• Pro-forma billings were £1.4 billion.
Pro-forma revenue was £740.2 million
and pro-forma gross profit was
£609.1 million up 53.8% and 45.7%
respectively on 2020. Pro-forma operational
EBITDA was £113.0 million, up 16.8% on

Haggis...you shouldn't be such a plonker. I reiterate, I'm pleased I sold the other day.

I'm pleased I sold yesterday. What is happening here...great news and the sp goes into reverse.

said this was a buy...LOL!! Oh, who needs electric friends?

AIM when you have RR.!

I too am quietely buildling a stake here!

Feel sorry for those who panic sold the other day.

Been walking south of Hannover towards Hildesheim and Alfeld....a battlefield tour that wasn't!

And guess who fuelled the housing market just recently...you guessed it, the Chancellor and in my opinion, totally unnecessarily. And now inflation and interest rates are rising...and why not, as everyone thinks they can get away with raising prices. Loadsamoney!!

LTI...we can all see how many shares in issue. However there is a new trading range. If you are still using the 2009 range, then should you really be here? Anyway, I have more valuable work to do now as the cats' litter tray needs cleaning.

Oh...so they'll all be sold on Monday? Or perhaps as the subscription was in 2009, they may have already be churned? However, as an MBA holder I may have missed something.

Just filled!

for clarity...
Ex-Dividend Date

The ex-dividend date is the date which is used to decide which shareholders will receive a dividend payment. Shareholders who own shares in the company before the market opens on the ex-dividend date will receive a dividend payment. Shares bought on or after the ex-dividend date will not qualify for the dividend.