Thomas Cook Group

Ticker TCG

Today's data summary

Market open
% change
+4.64%
Price Pence
36.08
Change
+1.60
As of 10:07 17 Jan 2019
Market cap. Pound sterling
555.62 million
As of 10:07 17 Jan 2019

Latest updates

Thomas Cook boss snaps up shares

Thomas Cook
AFP

Peter Fankhauser, chief executive of Thomas Cook, has splashed out £50,000 buying shares in the travel operator.

He paid 29p per share, according to disclosures made to the stock market today.

He is already sitting on a paper loss on that purchase as the shares are off 4% today at 27p.

Over the past 14 months the shares have crumbled from 120p after a series of profits.

The latest leg down may be fuelled by a report over the weekend that the families will be advised not to book holidays after March because of Brexit. Downing Street has denied the suggestion.

Three-horse race

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Superdry, as reported earlier, has had a torrid day - and year - on the stock market. According to Bloomberg it is in a three-way race with Indivior and Thomas Cook to be the worst performing stock of 2018.

London shares trade lower

London Stock Exchange
Getty Images

London shares have continued to slip, in line with other European stock markets, on the eve of the UK parliament's vote on Prime Minister Theresa May's Brexit deal.

The FTSE 100 is down 0.3% to 6,758.91, with the losers led by Barratt Developments, which has fallen 4% to 456p. Top of the winners is mining giant Randgold Resources, which has risen 1.5% to £67.66.

The FTSE 250 has dropped 113 points or 0.6% to 17,731.12. Top of the losers is Thomas Cook, which is down 7.8% to 28.5p as its shares continue to fall after its second profit warning in two months.

The top riser on the index is retirement financial services firm Just Group, which has jumped 18.8% to 96.3p.

Tourists in Spain

Bill Wilson

Business reporter, BBC News

Concern about the travel firm's future mount as it issues a second profit warning and its shares wallow.

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What's gone wrong at Thomas Cook?

Thomas Cook shares
BBC

From Club 18-30 to nationalisation, Thomas Cook has had a chequered history.

If you want to see how its past led to where it is now, then have a read of this handy summary by BBC reporter Bill Wilson.

What's gone wrong at Thomas Cook?

Today Programme

BBC Radio 4

Thomas Cook planes
Getty Images

Six months ago shares in Thomas Cook were just below 150p. Now, after two profit warnings, they are worth just 22p.

What's gone wrong?

Stuart Gordon, an analyst at Berenberg, has followed the company closely.

"The fact is that it is a pretty structurally challenged company," he tells Today.

New players such as AirBnB have entered the market and more people are booking their own holidays, and not buying package deals any more, according to Mr Gordon.

Thomas Cook's rival TUI, which owns the Thomson brand, is less reliant on package holidays and has a bigger cruise and hotel business.

Mr Gordon thinks Thomas Cook will need "some kind of fundraising" in the near future.

Thomas Cook 'needs to make big changes'

BBC Radio 5 live

Thomas Cook shop
AFP

As we reported yesterday holiday firm Thomas Cook's shares have now fallen nearly 60% in just over a week.

The cost of insuring its debt against defaulting on payments has also reached a record high.

Sophie Kilvert, from Seven Investment Management, says the firm has failed to keep up with changes in the industry and is still trying to sell holidays on the High Street, when people prefer to book directly themselves.

"Thomas Cook will need to make structural changes to get the confidence back of investors," she says.

But she admits it won't be easy. "Once you fall down that far to build it up is very difficult."

Thomas Cook shares slide further

Thomas Cook
Getty Images

Thomas Cook's shares are down a further 15% today. They've now lost over 60% of their value over the past week, since Thomas Cook issued its second profit warning in two months.

The cost of insuring debt issued by the travel firm against default is also at a record high.

Currently the company is worth around £363m, a value below its last published net debt figure of £389m.

The tour operator was reported yesterday to be in private talks with institutions aimed at calming nerves over its prospects.

Thomas Cook said last week that it was not in breach of its banking agreements and that its lenders remained supportive.

Thomas Cook shares hammered again

Thomas Cook planes
Getty Images

Thomas Cook shares are down another 10% today.

You might remember that last week the travel firm warned that profits would be weaker than expected this year. That was its second profit warning in two months.

Since last week's warning, shares have plunged 44%.

Today a research report from Berenberg said the company might need to raise more money on the stock market.

Analyst Stuart Gordon said the shares were "uninvestable" and thinks they could head as low as 12p each - another big drop from today's 25p.