These full-year results from TUI Travel (TT.) are set to be its last - at least in the company's current form - given the impending merger with German parent TUI AG. The deal, which will create the world's largest leisure tourism business, was approved by shareholders of both companies at the end of October. Shares in newly formed TUI AG are expected to begin trading in London on 17 December.
While the deal comprises a nil premium merger, TUI Travel's shareholders will be rewarded with a bumper 20.5p second half-year dividend - in lieu of the usual final dividend. That should be paid immediately prior to the merger's completion (expected on 11 December) to shareholders on the register at the merger scheme's record time (9 December).
The group is going out on a positive note, too. Overall, underlying operating profit rose 4 per cent year on year to £612m and TUI's mainstream markets - including the UK, Germany and France - reported a 6 per cent rise in underlying operating profit to £546m. That was enough to more than offset sluggish demand in the Nordic regions, where operating profit tumbled 41 per cent to £47m last year. Moreover, 63 per cent of the group's 2014-15 winter programme is already sold, with mainstream bookings and average selling prices up 1 per cent.
| TUI TRAVEL (TT.) | ||||
|---|---|---|---|---|
| ORD PRICE: | 445p | MARKET VALUE: | £5.42bn | |
| TOUCH: | 445-446p | 12-MONTH HIGH: | 451p | LOW: 321p |
| DIVIDEND YIELD: | 5.5% | PE RATIO: | 27 | |
| NET ASSET VALUE: | 131p* | NET CASH: | £371m† | |
| Year to 30 Sep | Turnover (£bn) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2010 | 13.5 | -73.0 | -11.1 | 11.0 |
| 2011 | 14.7 | 144 | 7.7 | 11.3 |
| 2012 | 14.5 | 201 | 12.5 | 11.7 |
| 2013 | 15.1 | 169 | 4.6 | 13.5 |
| 2014 | 14.6 | 362 | 16.4 | 24.55 |
| % change | -3 | +114 | +257 | +82 |
Ex-div: see text Payment: see text *Includes intangible assets of £4.3bn, or 353p a share †Excludes £140m of restricted cash | ||||
