Post-Brexit sterling slump cost Thomas Cook £40m

Post-Brexit sterling slump cost Thomas Cook £40m

Around £40 million was lost by Thomas Cook Group plc due to the fall in the value of sterling against the Euro and the US Dollar.

Chief financial officer Michael Healy told shareholders at the company’s annual general meeting of the effect of the depreciation of the UK’s currency on the tour operator giant.

But he added that Thomas Cook was coming into a “sweet period” as it had hedged 90% for summer 2017.

That means the company agreed a guaranteed exchanged rate for nine out of ten pounds it spends in the summer period. With the value of sterling still low following its post-EU referendum slump, this means Cook will be getting a better deal.

Healy also revealed that the firm has also hedged 75% for winter 2017-2018 and 30% for summer 2018.

“It works against you when prices are declining but it works for you when prices are rising,” Healy told shareholders.

“We are coming into a sweet period now”.

Healy also said the company had paid down debts by £100million last year and aims to pay off a further £300 million by the end of 2018.

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