Sentiment towards Thomas Cook has improved over the new year, with many consumer newspaper city pages backing new chief executive Harriet Green’s business turnaround plan.
The Times tipped Cook as one of the ten shares to follow in 2013, saying: “The company has been through a near-death experience and now has a newish chief executive, Harriet Green, who has set about a recovery programme.
“I believe Thomas Cook will survive, and if so, there is only one way for the shares to go.”
In a separate report on New Year’s Eve, the newspaper said: “She [Green] had no experience in the travel or leisure industries, having spent most of her working life in electronics. But she has already made her mark.
“Several senior executives have departed and in her first results briefing to the City late last month she indicated that more job cuts were likely, having identified £100 million of annual cost savings in her first 17 weeks in the job.
“Before joining Thomas Cook she was chief executive of Premier Farnell, the distributor of electronic parts and products.
“She sets great store in having a good work-life balance, again not often a stated priority for the average grey-suited male executive.”
The Daily Mail also backed the firm, saying: “It’s time for a New Year’s resolution and many punters who are sick and tired of being perpetually drenched or cold at home in the UK will be making a holiday in the sun their number one priority for 2013.
“There are no Olympics, Jubilee celebrations or elections to keep them at home this year so a trip abroad to soak up the old currant bun should be a must.
“Harriet Green, chief executive of Thomas Cook, will be hoping that sun-seekers choose her global travel company to book their dream winter and/or summer holidays.
“She joined beleaguered Cook in May and helped save it from the knacker’s yard, working with its banks on a major rescue and capital injection of £100 million which was wheeled out in November.
“Cook’s shares added a further penny to 48p and have soared from the pre-rescue level of 12.75p.
“Green herself showed her commitment to the cause by acquiring 500,000 shares at 23p a pop and other directors piled in too and have so far more-than-doubled their money.
“Chairman Frank Meysman bought 100,000 shares at 24.6p and Peter Fankhauser, chief executive of UK and Continental Europe, 170,000 at 23.25p.”
The Sunday Telegraph also tipped shares in Cook as being amongst those to look out for in 2013.
It said: “Not even Harriet Green, the upbeat new chief executive of Thomas Cook, could deny that 2012 was an annus horribilis for the 171-year-old tour operator.
“The past 12 months have seen the company slump to a £485.3 million loss, lay off 1,250 staff, agree a £1.4bn financing package on pretty punishing terms and part with a number of assets.
“While 2013 is unlikely to be an “annus mirabilis”, there is recognition that the tour operator is now over the worst and some parts of the City believe Thomas Cook represents a buying opportunity.
“Green has identified £100 million of costs that can be stripped out and more savings are expected early next year, potentially in the form of job cuts, shop closures and a further downsizing of the aircraft fleet.
“Debt, at £788 million, is too high and it is expected Thomas Cook will have to raise £300 million to £400 million to ease its balance sheet.
“However, even after an equity-raising, analysts believe the shares, which have added 31p over the past 12 months, have potential.
“Credit Suisse estimates that post a £300 million rights issue, Thomas Cook would trade on a multiple of 4.9 times.”