Holidays provider Thomas Cook (TCG) has issued its second profit warning in three months and axed its dividend as it struggles to against a slump in bookings. In September the sun and sea breaks operator blamed this year’s flaming hot summer weather for a cut to its full year underlying profit forecast, slashing guidance from £323m to £280m.
Thomas Cook now expects underlying earnings before interest and tax to be another £30m below that range at around £250m, a massive blow to investors that suggest a huge deterioration in demand.
Shares in the company plunge in early trade on Tuesday, collapsing by more than 30% to 33.38p, valuing the business at about £515m. That compares to £389m of net debt sat on the firm’s balance sheet.
Full-year revenues rose 6% to £9.5bn.
Overall markets are reasonably steady although gains are hard to come by as investors see optimism fade over a resolution of the trade dispute between the US and China.
At 8.30am the FTSE 100 index nudges around 10 points lower to 7,027.62, with FTSE 250 mid caps under far greater selling strain, that index off by 72 points at 18,646.
DE LA RUE HIT PASSPORTS LOSS
Bank notes and passport printer De La Rue (DLAR) sees its first half operating profit slump 36% to £17m, bearing the scars of losing the contract to print the UK's post-Brexit passports.
Revenues rose 5% to £257.6m.
The £480m business has conducted a detailed review of strategy in light of the passports contacts and is now aiming to push ahead with plans to ‘transform the group into a less capital intensive, more technology led business.’
Shares in De La Rue drift 1.6% lower to 454.5p.
Bakery chain Greggs (GRG) is in strong demand with investors on Tuesday after reporting continued improved trading during October and so far in November.
The FTSE 250 company said that in the eight weeks to 24 November total sales grew 9% and like-for-like sales in company-managed shops increased by 4.5%.
It’s enough to spark a 14%-plus jump in the share price to £14.10, heading the list of risers across the FTSE All-Share.
Retailer Pets at Home (PETS) has announced plans to buy out 55 of its 471 joint venture First Opinion vet practices and close up to 30. But this £49m restructuring comes at a hefty cost, crushing half year pre-tax profits, which fall 80% to £8m in the six months to 11 October.
New boss Peter Pritchard, who took over in May, say the company will ‘recalibrate the business to deliver more measured growth.’
Revenue rose 6.7% to £499.3m.
The shares slip 0.5% lower to 114p.
TOPPS BRACES FOR BREXIT FALLOUT
Home improvements supplier Topps Tiles (TPT) plans to stock up key products as a Brexit precaution in case of supply chain disruptions.
The tile retailer follows similar action by Premier Foods (PFD) recently.
Topps’ posted pre-tax-profits for the year to 29 September of £216.9m, a 25% decline on the previous year, on revenues 2.4% higher at £216.9m, although like-for-like sales were flat.
Shares in the company sink 3% to 64p.
Quality assurance provider Intertek (ITRK) saw revenue rise 4.8% at constant exchange rates to £2.31bn in the 10 months to 31 October 31 as it reaffirmed 2018 targets.
Intertek shares nudge 37p higher to £46.83.
