Thomas Cook Group has announced a 26% increase in provisional profits for the year ending October 31 2007.
In a trading update released today, the group announced an operating profit of €375.3 million, with savings of at least €200m euros resulting from the integration of the business.
The board is to seek approval at the AGM for a share buy-back programme of around €375m.
In the UK alone, operating profit has increased by €32.3m year-on-year.
A statement said: “While trading for much of the year did not fully meet expectations, this was more than offset by reductions in overhead costs and there was a strong end to the season. We have taken the necessary measures to secure improved performance in the current year.”
Bookings for the current winter season have improved since the last trading update on November 1, said the company, and are now 2% lower than last year. Capacity on sale is still 5% lower than last year and average selling prices are now slightly ahead.
Early indications for summer 2008 are good, reported the group, with bookings and selling prices up on last year.
Joint chief executive Manny Fontenla-Novoa said: “Both our current trading and our first operating result as Thomas Cook Group plc are very encouraging. We have a sound platform to achieve our target of at least €620m operating profit in 2009/10.”