Thomas Cook ramps up targets as overhaul yields leap in profit

Thomas Cook raised its revenue and cost-cutting targets in the latest stage of a profit-boosting turnaround at the world's oldest travel firm.

The tour operator is recovering from a dramatic slump over the past three years. Since travel industry outsider Harriet Green took over as chief executive 16 months ago, it has achieved a steady improvement in its finances through job cuts, store closures and disposals to reduce debt.

The company posted earnings before interest and tax up a forecast-beating 49 per cent to £263 million in the year to September 30th, helped by strong demand for holidays to Spain, the Canary Islands and Turkey.

Thomas Cook now aims to cut costs by £440 million by 2015. It also raised its target for revenue from new products by 40 per cent to £700 million by 2015. – (Reuters)