Thomas Cook has set new profit improvement targets after seeing underlying annual profits rise by 48% to £263 million.
Revenue for the year to September 30 was up by 1.3% to £9.3 billion due to pricing, yield improvements and the effect of foreign exchange offsetting a cut in capacity.
The proportion of holidays booked online rose from 34% in 2012 to 36% this year, moving towards a target of more than 50% by 2015.
The number of UK agency branches has been cut by 21% from 1,100 to 874 at the end of September.
The group, which has completed a £1.6 billion recapitalisation, is now back on a firm trajectory of profitable growth, according to chief executive Harriet Green.
“Yet the implementation of our strategy for sustainable profitable growth has only just begun,” she added.
“With our systemised approach to business, our products, people and processes and our powerful unified brand, we are confident of delivering significantly more.
“Reflecting this, we are increasing three of our key 2015 targets: new product revenue, wave 1 cost out and profit improvement and cash conversion.
“In addition, we are delighted to announce a new wave 2 cost out and profit improvement target to be delivered by 2018, which will be of the same magnitude as wave 1.
“Totally committed to our continuing transformation, I look forward to Thomas Cook delivering even more value in the years to come.”
The plan will be developed over the next six months with further details on the initiatives, savings and costs to implement them at the time of 2014 interim results.
Cook reported margins for the coming winter as being ahead of last year due to the closure of certain high volume, low value business lines.
UK bookings for winter are 7% lower than last year but 1% higher on a comparable basis.
The summer 2014 performance is “in line with expectations”, with improved flexibility for capacity management and enhanced product offering designed to ensure the business is fully aligned with customer demand to produce continued profit improvement next year.
“We are confident that our new products, continued trading improvement and the accelerated cost savings announced with these results will ensure that the group will more than deliver on its commitments,” the company said.
The sale of assets, including this week’s dispel of Neilson Active Holidays, has brought in proceeds of £61 million, putting Cook on track to achieve a target of between £100 million and £150 million by 2015.
Described as a a key driver of profitable growth, Cook plans to have 800 ‘exclusive partnership’ and ‘concept’ hotels open by 2017, handling more than 3.5 million holidaymakers.
The introduction of high tech concept stores has seen five openings. This, combined with the roll out of agency branch rebranding, will deliver a “refreshed” high street presence, Cook said.
The group also plans to increase the number of city hotels from 7,000 to 20,000 by 2015.
Cook reported signs of a positive recovery in the Egypt market for the winter following a period of political unrest.