Thomas Cook shares plunge after profit warning


Thomas Cook’s shares plunged nearly 28 per cent in morning trading after the holiday group warned on full year profits.

The troubled group has issued its second profit warning in three months, saying that it expects full-year income to be £30m lower than expected.

In September, the holiday operator blamed hot weather in the UK for a cut to its full-year underlying profit forecast, from £323m to £280m.

Thomas Cook now expects underlying earnings before interest and tax to reach £250m. It also suspended its dividend payout to shareholders.

Over the full-year to 30 September, Thomas Cook said net debt had reached £389m.