Thomas Cook Regulatory News (TCG)

14 Feb 2008 07:01

Thomas Cook Group PLC14 February 2008 14 February 2008 Thomas Cook Group plc Interim Management Statement Thomas Cook Group plc is today publishing its first Interim Management Statementfor the 2007/08 financial year which covers the period from 1 November 2007 to13 February 2008. Current Trading and Outlook As outlined in our preliminary results announcement of 30 January 2008, tradingfor winter 07/08 and summer 08 continues to be encouraging and we are in astrong position for the rest of the year. The Board continues to look to the future with confidence. In the short term, weare encouraged by the business's performance since the year end and ongoingcurrent trading. In the longer term, merger synergies of at least €200m providea sound platform for the achievement of our target of at least €620m operatingprofit in 2009/10. Financial Performance The unaudited Group operating loss before exceptional items and amortisation ofbusiness combination intangibles in the two months to December 2007 was reducedby €39.6m, or 27%, to €106.8m (2006 pro forma loss: €146.4m). The result forthis period is in line with our expectations and reflects the seasonality of ourbusiness. The improved Group operating result reflects costs savings and improvements inunderlying margins, partially offset by increased costs of fuel. Significantyear on year improvements were seen in the UK and Continental Europe withsmaller improvements reported in Airlines Germany and North America. NorthernEurope continued to perform strongly, in line with the prior year. Corporatecosts were broadly flat year on year. The improvement in the UK reflects cost savings achieved through the integrationprocess. In Continental Europe, we have seen a strong start to the year inGermany, with improvements in margins achieved and lower overhead costs than inthe prior year. In Airlines Germany, increased volumes in third party and seat only businesshave resulted in improved margins year on year. In North America, we have alsoachieved improved margins despite the continuing difficult trading conditions inCanada. Operating exceptional items in the period were €9.9m, and largely reflect thecontinued integration of the UK businesses. Amortisation of business combinationintangibles amounted to €14.9m. Acquisition of hotels4U.com Today the Group also announced that it has agreed to acquire the entire issuedshare capital of hotels4U.com Limited from Centurion Holiday Group Limited. Theinitial consideration, net of amounts to be reinvested by Haim Perry, MD ofhotels4U and Jacky Bedlow, Finance Director, is £21.8 million payable in cashfrom internal resources. The management's reinvestment is subject to earn outarrangements based on the profitability of hotels4U up to 2013. (Thisacquisition is the subject of a separate announcement.) Arcandor Reporting Arcandor, our majority shareholder, is today issuing its first quarterly reportto the German market in line with German regulatory requirements. This reportcontains financial information relating to Thomas Cook Group plc that reflectsthe information Thomas Cook Group plc is reporting today for the two monthsended 31 December 2006 and 2007 (with some minor adjustments due to differencesin accounting policies and formats). In addition, in its press release relatingto the quarterly report, Arcandor has provided illustrative results for ThomasCook Group plc for the three months ended 31 December 2007 and 31 December 2006.The basis of preparation of these illustrative results is set out in their pressrelease. The Board of Thomas Cook Group plc has not approved this illustrativeinformation for the purpose of reporting its results. Thomas Cook Group plc willannounce its pro forma result for the six months to 31 March 2008 in May 2008.In addition, it should be noted that the prior year information included in theArcandor quarterly report relating to Thomas Cook Group plc is not directlycomparable to the prior year information included in this interim managementstatement, which is on a pro forma basis. Enquiries: Thomas Cook Group plc Today +44 (0) 20 7404 5959 Thereafter +44 (0) 1706 746464Manny Fontenla Novoa Chief ExecutiveLudger Heuberg Chief Financial OfficerSteven Olivant Investor Relations & Financial Communications Director Brunswick +44 (0) 20 7404 5959Fiona AntcliffeSophie Brand Group Unaudited Income Statement informationFor the two months ended 31 December 2007 2007 Pro forma 2006 Pre- Pre- Adj's* Adj's* Total Adj's* Adj's* Total •m •m •m •m •m •m-------------------------------------------------------------------------------- Revenue 1,240.5 - 1,240.5 1,230.7 - 1,230.7Cost of providingtourism services (985.2) (0.5) (985.7) (976.8) - (976.8) ------------------------------------------------------------Gross profit 255.3 (0.5) 254.8 253.9 - 253.9 Other operatingincome 6.6 - 6.6 8.2 - 8.2Personnel expenses (198.2) (4.0) (202.2) (219.5) - (219.5)Depreciation &amortisation (28.0) - (28.0) (32.6) - (32.6)Amortisation ofbusiness combinationintangibles - (14.9) (14.9) - - -Other operatingexpenses (142.5) (5.4) (147.9) (156.4) (0.2) (156.6)Profit on disposal of businesses andP,P & E - - - - 14.2 14.2 ------------------------------------------------------------Loss fromoperations (106.8) (24.8) (131.6) (146.4) 14.0 (132.4) ------------------------------------------------------------ Share of resultsof associatesand joint ventures (1.4) (0.8) * Adjustments relate to exceptional operating items (2007: •(9.9)m; 2006:€14.0m) and amortisation of business combination intangibles (2007: •(14.9)m). All revenue and results arose from continuing operations. This information is provided by RNS The company news service from the London Stock Exchange