Organic growth boosted turnover by 2 per cent at TUI Travel (TT.), but currency fluctuations turned this into a 2 per cent decline for the year. However, price increases, and cost savings of £42m helped to lift underlying profits by 4 per cent to £490m.
Trading in the UK provided one of the main drivers for growth, with underlying profits up from £149m to a record £197m, while operating margins grew from 4.2 per cent to 5.4 per cent. Average selling prices rose 4 per cent, while sales of higher margin unique holidays rose 5 per cent, and now account for 79 per cent of holidays sold.
Business was also brisk in the Nordic region, where winter bookings are up by 5 per cent, although a £13m negative impact as a result of flooding in Bangkok left underlying operating profits just marginally ahead at £71m. Moreover, trading in France remained tough, although underlying losses narrowed from £53m to £47m. But the operation remains heavily reliant on North Africa, an area still plagued by political turmoil, and winter bookings are down 28 per cent.
Looking ahead, bookings for next summer in the UK are up 12 per cent, with average selling prices ahead by 3 per cent, while bookings from the Nordic region are higher by 16 per cent.
Investec is forecasting 2013 pre-tax profits of £319.7m and EPS of 19p.
| TUI TRAVEL (TT.) | ||||
|---|---|---|---|---|
| ORD PRICE: | 277p | MARKET VALUE: | £3.10bn | |
| TOUCH: | 277-278p | 12-MONTH HIGH: | 279p | LOW: 149p |
| DIVIDEND YIELD: | 4.2% | PE RATIO: | 22 | |
| NET ASSET VALUE: | 140p* | NET DEBT: | 7% | |
| Year to 30 Sep | Turnover (£bn) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2008 | 13.9 | -267 | 20.4 | 9.70 |
| 2009 | 13.4 | -94.0 | -4.80 | 10.7 |
| 2010 | 13.5 | -73.0 | -11.1 | 11.0 |
| 2011 | 14.7 | 144 | 7.70 | 11.3 |
| 2012 | 14.5 | 201 | 12.5 | 11.7 |
| % change | -2 | +40 | +62 | +4 |
Ex-div: 6 Mar Payment: 10 Apr *Includes intangible assets of £4.48bn, or 401p a share | ||||
