Thomas Cook shares rise as full year results beat expectations

Pre-tax profit was down to £302.8 million despite an increase in revenue of 5.9 per cent to £9.2 billion. Meanwhile the company’s net debt increased from £292.5 million to £673.5 million.

Although profits were down the results were in fact ahead of expectations thanks to higher ticket prices offsetting lower passenger numbers.

As a result the board of the company said it would be increasing its recommended dividend by 10 per cent to 10.75 pence per share.

Trading since 30 September was reported as being in line with expectations despite a “challenging environment”. The company said it is in line to meet expectations in the full year 2010.

The company also said that the newly appointed CFO, Paul Hollingworth, would take up his new post on 1 January 2010.

Manny Fontenla-Novoa, Chief Executive of Thomas Cook, said, “We have delivered a strong performance in 2009 achieving full year results ahead of market expectations. This is particularly pleasing as it comes despite the worldwide recession and the financial impact of the Swine Flu outbreak.

“Looking ahead, the late booking trend is still evident but our winter 09/10 trading position continues to improve and trend towards our planned capacity. Although it is still early in the cycle, bookings for summer 10 are also in line with our expectations.

“Recent customer research shows that UK consumers remain intent on taking their holidays abroad next summer and we continue to see strong growth in bookings to medium haul destinations such as Turkey and Egypt.”

By 9:18 am shares in Thomas Cook were up 1.99 per cent to 220.65 pence per share.