This website uses cookies to collect usage information in order to offer a better browsing experience. By browsing this site or by clicking on the "ACCEPT COOKIES" button you accept our Cookie Policy.

UK Sparks: Thomas Cook Seeks Capital Injection; Lookers Warns on Profit


Visit: Edison

Thomas Cook has announced plans to recapitalise the business citing a “progressively more challenging” operating environment in Europe. The travel group is looking for a £750m capital investment to help them trade over the winter season and is in advanced talks with China’s Fosun Tourism (their largest shareholder) and core banks, it said.

The proposal would also see the Chinese investor own a controlling stake in their tour operator business and a “significant minority interest” in the airline unit. It would also see some of Thomas Cook’s external bank and bond debt converted into equity. Though shareholders will be “significantly diluted,” the company said they may still be able to invest alongside Fosun and creditors. CEO Peter Fankhauser said the proposal was a “pragmatic and responsible solution which provides the means to secure the future” of the company.

Elsewhere, car dealership Lookers has warned that underlying pretax profit will be about £32m in the first half of the year, down from last year’s £43m. The company said the UK’s new car market had continued to a decline in Q2, with registrations down 4.6%. They also cited weaker demand in the used car market.

Lloyds of London insurer Hiscox said it’s expecting to deliver a half year pretax profit of between $150 to $170m, which includes a $150m investment return. It also expects Hiscox Retail‘s combined ratio, a measure of profitability, to be within its normal range of 90-95%. Hiscox said the insurance market had seen continued deterioration in 2018 from Typhoon Jebi in Japan and Hurricane Michael in Florida, with loss estimates climbing “materially.”

Finally, emerging market fund manager Ashmore Group saw assets increase $US6.5bn in their fourth quarter to $85.3bn, boosted by $3.3bn of net inflows and a $3.2bn investment performance. The company said client activity levels “remain healthy” and global market conditions improved as US/China trade tensions eased.

Disclosure: Edison

Edison is authorised and regulated by the Financial Conduct Authority. Our research is a marketing communication as defined by the FCA, this communication only contains information that is an acceptable minor non-monetary benefit as defined under COBS2.3A19(5).

Disclosure: Interactive Brokers

Information posted on IBKR Traders’ Insight that is provided by third-parties and not by Interactive Brokers does NOT constitute a recommendation by Interactive Brokers that you should contract for the services of that third party. Third-party participants who contribute to IBKR Traders’ Insight are independent of Interactive Brokers and Interactive Brokers does not make any representations or warranties concerning the services offered, their past or future performance, or the accuracy of the information provided by the third party. Past performance is no guarantee of future results.

This material is from Edison and is being posted with permission from Edison. The views expressed in this material are solely those of the author and/or Edison and IBKR is not endorsing or recommending any investment or trading discussed in the material. This material is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation to buy, sell or hold such security. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

trading top