Debts are soaring at Thomas Cook but the stricken travel operator insists it has a bright future.
In the six months to March the 170-year-old firm recorded a loss of £713 million, about what the City was expecting, but still bad enough to cause another lurch in the battered shares, down 2p at 18.25p. Debts rose £388 million to £1.39 billion. That compares with shareholder equity of £160 million.
Interim chief executive Sam Weihagen insists the company will pull through. Asked what the chances are of the business existing in five years, he replied: “One hundred per cent. It’s a strong brand. I would be extremely surprised if we are not still here.”
Weihagen is standing down in favour of Harriet Green, the Premier Farnell chief poached last week, who joins at the end of July.
“We are on a much firmer footing than we were six months ago. And we have a strong new management team appointed,” said Weihagen.
The latest loss included a £300 million impairment charge after a writedown of the value of businesses in North America, western Europe and India.
Sales were actually up 2% on the year to £3.5 billion.
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