Results out soon in August.

Broker recos look very bullish and why not on a P/E of just over 6 to 2011.....

Thomas Cook Group PLC

FORECASTS 2010 2011
Date Rec Pre-tax (�) EPS (p) DPS (p) Pre-tax (�) EPS (p) DPS (p)

Panmure Gordon
02-08-10 BUY 319.00 27.10 11.30 338.00 28.70 12.40

Exane BNP Paribas
02-08-10 BUY 116.00 26.62 10.75 319.00 28.87 11.66

Numis Securities Ltd
02-08-10 ADD 324.20 27.60 11.25 357.10 29.90 11.81

Oriel Securities
02-08-10 BUY 330.40 28.40 11.40 363.50 31.30 12.10

KBC Peel Hunt Ltd
30-07-10 BUY 301.06 25.22 10.75 313.36 26.23 10.93

WestLB
30-07-10 SELL 28.81 11.52 29.91 11.96

Shore Capital
30-07-10 HOLD 312.00 26.50 11.80 347.00 29.50 13.00

Charles Stanley Securities
15-06-10 HOLD

Evolution Securities Ltd
11-02-10 None

Investec Securities [R]
09-02-10 BUY 327.00 27.30 11.74 352.23 29.39 12.49

Fyshe Horton Finney Ltd
25-01-10 BUY

Collins Stewart
24-12-09 BUY

Nomura Research Institute
25-09-09 RED

2010 2011
Pre-tax (�) EPS (p) DPS (p) Pre-tax (�) EPS (p) DPS (p)

Consensus 316.42 26.98 11.36 342.50 29.39 11.96

1 Month Change 1.07 -0.22 0.01 3.43 -0.14 -0.14
3 Month Change -11.92 -1.09 -0.05 -11.79 -1.00 -0.44


GROWTH
2009 (A) 2010 (E) 2011 (E)

Norm. EPS 2.76% 0.38% 8.92%
DPS 14.03% 10.80% 5.26%

INVESTMENT RATIOS
2009 (A) 2010 (E) 2011 (E)

EBITDA �574.90m �589.69m �613.90m
EBIT �372.50m �420.55m �447.05m
Dividend Yield 5.38% 5.96% 6.27%
Dividend Cover 2.62x 2.38x 2.46x
PER 7.10x 7.07x 6.49x
PEG 2.57f 18.55f 0.73f
Net Asset Value PS -240.80p 224.47p 240.43p

excellent news - very well received in the city - expecting more here today - should reach close to 65p at very least - very strong buying a bargain from this market leader - sell home and get in here!! lol

only sells really are small pi - iis coming in - dont miss the value of this financial stability short & long

volumes increasing well to which the dirty mms are taking advantage with auto trades as usual lol

Thomas Cook strikes bank deal, gets winter buffer

} Paul Hoskins, 13:32, Friday 21 October 2011

LONDON (Reuters) - Thomas Cook has struck a deal with its banks, sending battered shares in the holiday group soaring after a string of profit warnings that cost the company its chief executive and shareholders their dividend.

Europe (Chicago Options: ^REURUSD - news) 's second biggest tour operator still has a lot to do after losing three quarters of its market value since mid-January, analysts cautioned, noting that it may yet have to tap shareholders for fresh funds.

Thomas Cook said Friday it had amended the terms of existing bank facilities and agreed a new 100 million pounds short-term credit line to tide it over during December when trading is traditionally quiet.

"We are pleased to have the full support of our banking group in amending the financial covenants so as to provide greater financial flexibility, particularly around the seasonal cash low point at the end of December," Chief Financial Officer Paul Hollingworth said in a statement.

Shares in the group were up 18 percent at 53.7 pence by 0905 GMT. The surge took the stock to levels last seen in mid-August but left it well short of a year high of 206.8 pence.

Peel Hunt analyst Nick Batram said the deal had allayed fears Thomas Cook would ask shareholders for fresh funds and described the group as "one of the most interesting turnaround prospects in the sector" but pointed to Britain's weak consumer environment as a major hurdle still facing the group.

"Focus will now return to the job of improving profitability against a backdrop of deteriorating consumer confidence," Batram wrote in a note to clients. "Definitely a positive step forward, but there is still a lot of hard work ahead."

Thomas Cook scrapped its dividend last month as part of efforts to cut its debt substantially over the next 2 to 3 years.

The company said that under the deal the terms of an existing 150 million pound loan and a 850 million pound credit facility maturing in May 2014 had been amended, setting less onerous caps on how much debt and debt-related charges it can carry relative to earnings.

In return for the easing in lending terms, Thomas Cook has agreed to restrictions on acquisitions, a prohibition on dividends and to use the proceeds from any disposals to reduce its loans.

The interest margin it pays on its borrowings will also increase by half a percentage point.

"It's a positive development which addresses a widely-held investor concern," Charles Stanley analyst Douglas McNeill wrote.

As well as needing to find a new chief executive, McNeill predicted that an exit from its Indian business and tapping shareholders for funds via a rights issue may also still be in the pipeline.

Sun shines on Thomas Cook after bank deal






Rachel Cooper, 18:50, Friday 21 October 2011

The clouds parted over Thomas Cook as the tour operator struck a deal with its banks, allaying fears that the business might need to tap shareholders for fresh funds.

FTSE today: market report live

A string of profit warnings as the holiday group felt the fallout from the Arab Spring has cost the company its chief executive. But there was a glimmer of light on Friday as Thomas Cook renegotiated its banking facilities and agreed a new 100m short-term credit line to tide it over during December when trading is traditionally quiet.

Paul Hollingworth, Thomas Cooks finance director, said: We are pleased to have the full support of our banking group in amending the financial covenants so as to provide greater financial flexibility, particularly at the seasonal cash low point at the end of December.

Analysts welcomed the news but cautioned further turbulence could lie ahead. Nick Batram at Peel Hunt said that the deal assuaged fears Thomas Cook would ask shareholders for fresh funds, adding the focus would now return to improving profitability against a backdrop of deteriorating consumer confidence. Definitely a positive step forward, but there is still a lot of hard work ahead, he said.

Douglas McNeill at Charles Stanley agreed it was a positive development that addressed a widely-held investor concern. But as well as needing to find a new chief executive boss Manny Fontenla-Novoa stepped down in August he predicted an exit from Thomas Cooks Indian business and tapping shareholders for funds via a rights issue may also still be in the pipeline.

As Thomas Cook, which has lost three-quarters of its market value since mid-January, sunned itself at the top of the mid-cap index, leaping 5.95 13pc to 51p,

tour operator Thomas Cook retreated 1.85 to 54.8p after the same broker cut its price target to 47p from 82p. We continue to see several significant structural challenges to mainstream tour operating, which we expect to lead to margin and volume pressure over the near and medium term, said analysts, who highlighted challenges such as declining numbers of package holidays. Despite this, TUI Travel (Other OTC: TTVLF.PK - news) rose 3.9 to 171.8p.

Record low.

mitzy - I take it you have seen this Thomas Cook closes 125 more shops its been doing the rounds since yesterday.

Thomas Cook shares dive on news of bank talks

Shares in Thomas Cook have opened down 62% after it announced it was in talks with banks about increasing the amount of money it can borrow.

The travel firm said it had seen a "deterioration of trading in some areas of the business".

It also said it would delay releasing its full year results until it had concluded the discussions.

10p now and could fall further.

I've already mentioned in middle of 2011 that TCG will deteriorate due to poor management. This is an investment for the foolish who thinks this will go up to 60p.

beleive 5p would be the low.

Cant understand how with 8billion t/o they cant make a penny.

200p to 13p quite impressive in a year

Comment from Peel Hunt:
The group is clearly in a very difficult position and it would appear that the route to recovery will have to be a lot more painful for equity holders than previously thought. Thomas Cook needs further assistance from its banks and this is unlikely to come cheaply or without preconditions which could involve equity. Therefore, the shares are best avoided until the picture clears.
What next? Firstly, the group needs to get the banks to agree to a new deal. They will undoubtedly be concerned that the situation has deteriorated so quickly and to such a degree that it has forced Thomas Cook to come back for more help. We believe that the banks will step up to the plate but the cost to equity shareholders is likely to be significant. Debt for equity swaps and equity issues are likely to form part of the discussions of putting the business on a more financially robust position.
No visibility. There is no visibility in the business and the outcome of discussions with the banks is uncertain. Given this it is difficult to ascribe an accurate value to the equity. Even the best possible outcome of a renegotiated bank deal with a few additional charges, is unlikely to help the share price given the rapid deterioration in trading and lack of confidence in the group. As a consequence the shares should be avoided. Sell

TT also getting hit today - in sympathy (whatever that means).

BBC news major headline today.

Mind the cat.

they have got there funding from banks

but surely 75% of their biz is holidays in egypt!!

cynic far from it i would never go there .now greece is far better .