Banks, Financial

Banking app targets millennials who want help budgeting

Graduate debt, rent and high living costs have made it hard for millennials to save for a house, a pension or even a holiday. For Ollie Purdue, a 23-year-old law graduate, this was reason enough to launch Loot, a banking app targeted at tech-dependent 20-somethings who want help to manage their money and avoid falling […]

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Eurozone inflation climbs to highest since April 2014

A welcome dose of good news before next week’s big European Central Bank meeting. Year on year inflation in the eurozone has climbed to its best rate since April 2014 this month, accelerating to 0.6 per cent from 0.5 per cent on the back of the rising cost of services and the fading effect of […]

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Wealth manager Brewin Dolphin hit by restructuring costs

Profits at wealth manager Brewin Dolphin were hit by restructuring costs as the company continued to shift its focus towards portfolio management. The FTSE 250 company reported pre-tax profits of £50.1m in the year to September 30, down 17.9 per cent from £61m the previous year. Finance director Andrew Westenberger said its 2015 figure was […]

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Travis Perkins and Polymetal to lose out in FTSE 100 reshuffle

Builders’ merchant Travis Perkins and mining company Polymetal face relegation from the FTSE 100 after their recent performances were hit by political events. The share price of Travis Perkins has dropped 29 per cent since the UK voted to leave the EU in June, as economic uncertainty has sparked concerns among some investors about the […]

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RBS share drop accelerates on stress test flop

Stressed. Shares in Royal Bank of Scotland have accelerated their losses this morning, falling over 4.5 per cent after the state-backed lender came in bottom of the heap in the Bank of England’s latest stress tests. RBS failed the toughest ever stress tests carried out by the BoE, with results this morning showing the lender’s […]

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Categorized | Equities

Thomas Cook hits travel stocks

Posted on November 26, 2014

Travel stocks missed out on a wider, miner-led rally in London on Wednesday after the sudden resignation of the chief executive of Thomas Cook unnerved the sector.

After Harriet Green, who drove the recovery of the tour operator from near-collapse, announced her immediate departure, shares in the company slumped 19 per cent to 111.6p and the bottom of the mid-cap FTSE 250.

    Thomas Cook also trimmed its guidance for the full year, saying it expected growth in the 12 months to September 2015 to come “at a more moderate pace”. It noted that geopolitical uncertainty was damping demand, with weakening consumer confidence in Europe also taking a toll.

    “Investor concern is that Ms Green has left too soon and that the company transformation may be at risk,” said Rebecca O’Keeffe, head of investment at Interactive Investor.

    “Comments that her ‘work was complete’ conflict with other statements in their results that there is still ‘more to do’.”

    Credit Suisse cut its rating on Thomas Cook’s stock from “outperform” to “neutral”, saying: “The outlook commentary is balanced but cautious as the company note it expects more measured [earnings] growth plus highlights winter trading and extra cost pressures . . . We lower our 2015 and 2016 earnings before interest and taxation forecasts by 10 per cent and 13 per cent [respectively]”.

    As traders read across from the news, Tui Travel was among the biggest fallers on the FTSE 100, down 0.8 per cent at 443p. EasyJet was caught in the downdraft, turning around from its recent gains which related to lower crude prices. The stock drifted 0.5 per cent to £15.52.

    Overall, the main London index rose 0.3 per cent to 6,749.06, a rise of 18 points, with the rally underpinned by resurgent base metal stocks as risk appetite continued to improve on global markets.

    London’s best single gainer was Antofagasta, up 4.2 per cent at 764p. Anglo American gained 0.7 per cent to £13.39.

    Defensive stocks were lower in line with the more confident mood. Admiral Group, the car insurer, fell 0.7 per cent to £12.14 while United Utilities slid 0.8 per cent to 907½p.