Thomas Cook Group has suspended the announcement of its full year results as it enters talks with its bankers in the face of a serious slump in business.
Europe’s second largest tour operating group, which suffered from three profits warnings in the space of 12 months, stressed that it “currently remains in compliance with its financing covenants”.
But Cook said this morning that it “intends to seek agreement from its lending banks to adjustments that will improve its resilience if trading conditions remain difficult”.
Cook is to delay the announcement of its annual financial results due on Thursday until the discussions are concluded.
In a statement to the City this morning, the Cook said “that as a result of deterioration of trading in some areas of the business in the current quarter, and of its cash and liquidity position since its year end, the company is in discussions with its principal lending banks with regard to its facilities during the seasonal low period of cash in the business.
“As a result, the company will delay its announcement of its full year results until these discussions are concluded. The company expects to report a headline operating profit for the year ended 30 September 2011 broadly in line with previous guidance.”
Weekend speculation had pointed to the closure of 200 more travel agency branches following the conclusion of a review of Cook’s UK business.