Thomas Cook shop

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AFP

Journey agency Thomas Prepare dinner has warned of “additional headwinds” for the remainder of the 12 months after reporting a £1.5bn loss for the primary half of the 12 months.

It mentioned there was “now little doubt” that Brexit had induced clients to delay their summer time vacation plans.

Some £1.1bn of the loss was brought on by the choice to write-down the worth of My Journey, the enterprise it merged with in 2007.

The agency additionally mentioned it had acquired “a number of” bids for its airline.

It sought bidders for its fleet of 103 jets because it sought extra funds for the enterprise, which has issued a sequence of income warnings which have sparked a plunged in its share value from 140p a 12 months in the past.

In early buying and selling, the shares had been down 15% at 19p.

Some 21 retail shops have been closed, Thomas Prepare dinner Cash, its forex arm, is underneath assessment and the corporate mentioned extra “value efficiencies” had been deliberate.

Peter Fankhauser, chief govt, mentioned that throughout the first six months of the 12 months there had been “an unsure shopper atmosphere throughout all our markets”.

“The extended heatwave final summer time and excessive costs within the Canaries decreased buyer demand for winter solar, notably within the Nordic area, whereas there’s now little doubt that the Brexit course of has led many UK clients to delay their vacation plans for this summer time,” he added.

Journey firms often report a primary half loss – final 12 months’s was £303m – however this 12 months the loss was deeper due to the choice to revalue MyTravel “in mild of the weak buying and selling atmosphere”. The companies merged in 2007.

Mr Fankhauser mentioned that seeking to the remainder of the 12 months “the continued aggressive strain ensuing from shopper uncertainty is placing additional strain on margins”.

“This, mixed with greater gasoline and resort prices, is creating additional headwinds to our progress over the rest of the 12 months.”

The enterprise has minimize its capability in anticipation of a slowdown however mentioned it continued to “face intense competitors, notably in our UK enterprise”.

Mr Fankhauser mentioned clients had been “having an excellent deal this summer time”.

Laith Khalaf, senior analyst at Hargreaves Lansdown, mentioned the figures made “grim studying”.

“Thomas Prepare dinner’s scaled again the vacations it is providing in response to decrease shopper demand, however the aggressive atmosphere signifies that even so, it is having to supply reductions to get clients to half with their money,” he mentioned.

The underlying loss was £245m in contrast with a £170m loss a 12 months in the past, whereas the corporate has secured £300m of loans forward of the winter 2019/20 season.