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Thomas Cook Shares Plunge On Profit Alert

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Big miss, consumer turns to nonsumer. Budget-conscious, well we know why that is. High inflation, static wages - what a killer.

http://www.ft.com/cms/s/0/76a211be-ac51-11e0-bac9-00144feabdc0.html#ixzz1RsUqEas8

Thomas Cook shares plunge on profit alert

By Adam Jones

Shares in Thomas Cook fell heavily on Tuesday after trading difficulties on both sides of the English Channel forced the tour operator to issue a profit warning.

The company said it was struggling to pass on cost increases to budget-conscious UK travellers, while French holidaymakers were shunning their usual summer haunts in Egypt, Tunisia and Morocco because of recent political unrest in the Middle East and North Africa.

Underlying operating profit for the year to September 30 is now forecast to be about £320m, compared with the £380m that it said stock market analysts had been expecting. The comparable profit for the previous year was £362m.

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Big miss, consumer turns to nonsumer. Budget-conscious, well we know why that is. High inflation, static wages - what a killer.

http://www.ft.com/cms/s/0/76a211be-ac51-11e0-bac9-00144feabdc0.html#ixzz1RsUqEas8

Thomas Cook shares plunge on profit alert

By Adam Jones

Shares in Thomas Cook fell heavily on Tuesday after trading difficulties on both sides of the English Channel forced the tour operator to issue a profit warning.

The company said it was struggling to pass on cost increases to budget-conscious UK travellers, while French holidaymakers were shunning their usual summer haunts in Egypt, Tunisia and Morocco because of recent political unrest in the Middle East and North Africa.

Underlying operating profit for the year to September 30 is now forecast to be about £320m, compared with the £380m that it said stock market analysts had been expecting. The comparable profit for the previous year was £362m.

Working at Thomas cook can't be much of a holiday these days.

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Chart looks awful http://bigcharts.marketwatch.com/charts/big.chart?nosettings=1&symb=uk%3atcg&uf=0&type=2&size=2&sid=2707192&style=320&freq=2&startdate=1/4/2006&enddate=7/12/2011&rand=2063611807&compidx=aaaaa%3a0&ma=1&maval=30&lf=1&lf2=2&lf3=0&height=444&width=579&mocktick=1

We used to use Thomas Cook or Lunn Poly each year as a family, (when I was a child), Spain, Florida etc.

Today, my parents can't afford to go on a big holiday (factory closures), and that has been the case for 5 years. I have been on small trips to the Channel Islands with Mrs MS, and I book through the internet directly. I'm Nnot going on holiday this year at all due to concentrating all funds to the house purchase.

So - money is tight, and internet is taking over.

Boo to shop rents and business rates and inflation.

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My holidays start as I leave the front door 3-6 hour cycle, breakfast, pub for lunch on route, occasionally a 1 hour train journey if I don't want to cycle. £75 for 3 days camping, 20 bands a day, massive dance floor inside and out, lots of real ale. Next 3 day holiday £32 with camping, blues at a real ale pub, 30 bands over the event. Final holiday (so far) at a hotel, again big dance floor breakfast and 3 course lunch all in, £129 2-3 bands a night dance till 3am. Wife actually says thank you these days for a wonderful holiday, and that's when she's paid for it!

(prices per person)

Never had anything close to that much fun in my life. When you add in the efficiency of using long weekends you get a lot of holidays through the year, why book package holidays?

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People are skint and holiday prices are way up, holidays are a luxury not a necessity, at the end of the day something's got to give.

The weak Pound isn't doing the travel industry any favours either.

I can see spending on anything other than essentials completely drying up before long, the government is going to be in a pickle then, although that said they'll simply spend for us.

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Good grief that is some profit warning! Without looking in the detail Something must be up because as ft notes this could imply they dont have a clue on their sales trends.

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I get promotional e-mails from holiday and ferry companies I've used in the past * and they're sending me details of percentages off and special offers, even for the school holidays.

Out of curiosity I looked at a very popular campsite in Brittany. A few years ago I tried to book in February for the following August and there was no availability at all. This year, for the same fortnight in August, there are still plenty of vacancies available now, in July.

* I don't unsubscribe because I like my inbox to look as if somebody loves me

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These companies amaze me. They plough through the boom years buying up competitors and expanding in size and then it seems five minutes after the market turns and margins are squeezed they are fighting to survive.

Why do they proceed with no thought to any potential downturn?

As Warren Buffett once said 'its only when the tide goes out you can see who's been swimming naked'.

Seems like most of these companies are starkers.

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Never had anything close to that much fun in my life. When you add in the efficiency of using long weekends you get a lot of holidays through the year, why book package holidays?

Hmmmmm. You don't have kids, do you?

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Big miss, consumer turns to nonsumer. Budget-conscious, well we know why that is. High inflation, static wages - what a killer.

http://www.ft.com/cms/s/0/76a211be-ac51-11e0-bac9-00144feabdc0.html#ixzz1RsUqEas8

Thomas Cook shares plunge on profit alert

By Adam Jones

Shares in Thomas Cook fell heavily on Tuesday after trading difficulties on both sides of the English Channel forced the tour operator to issue a profit warning.

The company said it was struggling to pass on cost increases to budget-conscious UK travellers, while French holidaymakers were shunning their usual summer haunts in Egypt, Tunisia and Morocco because of recent political unrest in the Middle East and North Africa.

Underlying operating profit for the year to September 30 is now forecast to be about £320m, compared with the £380m that it said stock market analysts had been expecting. The comparable profit for the previous year was £362m.

We had a look at the Thomas Cook website for a week away at the beginning of the school holidays. Doesn't appear to be much availability left, and what there is reads very badly on Trip Advisor. £3K for a week of chav-infested 'fun', poor food, watered down drinks, and filthy/cramped accomodation. That is a supposedly discounted price for last minute booking too. Could have paid nearly £6K for a week in Portugal, at a place that gets an absolute slaughtering on TA.

I'm sure the holiday we have just booked with Jet2 will not be perfect, but it gets a much better TA rating, we've been able to upgrade cheaply for an extra bedroom, and the difference in cost will pay for all our spends even if we live it up.

There is a difference between being budget conscious, and feeling like someone saw you coming. They still use the 'demand' argument for school holiday prices, yet the demand has supposedly dropped off. ;)

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It's almost as if there is some horrible correlation between people having less money, too much debt and inflation getting out of control for essentials such as food.

If only I was a clever economist I could come up with a meaningless equation which would show that we only need to be worried about the economy destroying wage inflation which Mystic Merv is so keen about.

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It's almost as if there is some horrible correlation between people having less money, too much debt and inflation getting out of control for essentials such as food.

If only I was a clever economist I could come up with a meaningless equation which would show that we only need to be worried about the economy destroying wage inflation which Mystic Merv is so keen about.

live to eat or eat to live which one is coming soon

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These companies amaze me. They plough through the boom years buying up competitors and expanding in size and then it seems five minutes after the market turns and margins are squeezed they are fighting to survive.

Why do they proceed with no thought to any potential downturn?

As Warren Buffett once said 'its only when the tide goes out you can see who's been swimming naked'.

Seems like most of these companies are starkers.

It's all about Empire Building and short terminism. Bigger the business and greater deals/acquisitions going on allows the directors to justify their million pound pay packets - most of said directors have a shelf life of five years at most and chances are most of the directors at Thomas Cook during the M&A expansion have moved onto other things with all the money.

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People have no money left for luxuries, its all gone on those inelestic costs which have gone up over and above the "rate of inflation" and now the elites wonder why they system is crashing. :lol::lol::lol:

Expect more of this to come.

Quite....a family holiday can quite easily cost more than £1000 pounds plus, can't go won't go. ;)

...anyway holidays can be stressful when having to watch the pennies.....quality planned days out could be a viable alternative or summer camp for the kids. ;)

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Underlying operating profit for the year to September 30 is now forecast to be about £320m, compared with the £380m that it said stock market analysts had been expecting. The comparable profit for the previous year was £362m.

I wouldn't mind a profit like that. Even if it was one pound, its still a profit surely?

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Profit should be a function of how much capital is employed, how much future growth is expected and how much risk is being taken.

Re: holidays, having sold my house in January, paying less per month in rent than was paying down in mortgage plus interest and not having to fork out thousands each year on maintaining or 'improving' the house I've managed to save more money this year and will be going on three holidays with the kids (admittedly one is a long weekend and one is a four day trip to Bournemouth) but it means we will have / have had some memories to cherish rather than working all year to own a set of bricks.

So, the owners of Thomas cook should be lobbying hard for a hpc so people start to allocate their resources in a much better way. Ironically our big blow out holiday was an all inclusive in menorca booked via... Thomas Cook.

Seriously, in the stages of a hpc then holiday cutbacks , mates mortgages, outcries about fuel, pretty much the final signal for those yet to dump their property.

Merv may not want to raise rates but trust me the creditors will raise them for him soon. Then carnage!

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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