Tour operator Thomas Cook reduced earnings losses in the first half of the year, but revenues contracted as disruption in Egypt continued to weigh.

The company reported an earnings before interest and tax (EBIT) loss of £187m in the six months ended March 31st 2014, an £11m improvement on the prior year thanks to higher profits in Northern Europe, reduced seasonal losses in Germany and strong performances in France and Russia.

Sales, however, dropped 0.7% to £9.1bn and revenues fell 6.6% to £3.1bn as the unrest in Egypt and pricing weakness in the UK offset growth in other areas of the business.

Concept hotel summer bookings rose 44% and UK 2014/15 winter bookings gained 11%.

Online bookings, which account for about £3bn of bookings, jumped 39% as more customers opted to use mobile phones and tablets to arrange their holidays.

Net debt at the end of the period came to £811m, a reduction of £404m on last year's figure.

During the period, the group generated £119m in gross disposal proceeds through the divestment of non-core businesses in the UK as it streamlined operations and focused on a smaller number of brands.

"Our strategy is designed to deliver revenue growth and improved margins over the medium term and, accordingly, the benefits have not yet been reflected in the group's results for the first half 2014 given the early stage of development and the low season over the winter period," the company said.

"However, bookings for our new products are strong for the summer 2014 season and we expect to report the initial benefits from our profitable growth strategy from the second half of this financial year."


FTSE 250 pub operator and brewer Marston's posted a near 10 per cent increase in pre-tax profit as consumer confidence returns and said it is confident in trading for the remainder of the year.

Underlying pre-tax profit rose 9.4% to £29.0m in the 26 weeks ended April 5th as underlying revenue rose 4.5% to £374.3m.

At Destination and Premium like-for-like (LFL) sales rose 5.7%, while operating profit was up 18.2%. At Taverns, managed and franchised LFL sales climbed 3.8%. Leased LFL profits gained 3.0%. At Brewing revenue increase 3.5% as operating profit firmed 4.0%.

"We are beginning to see some evidence of consumer confidence returning in the regions, leaving us confident of making positive progress for the remainder of the year," said Chief Executive Ralph Findlay.

Group underlying earnings per share (EPS) increased 10.8% to 4.1p per share.

In the five weeks to May 10th, LFL Destination and Premium sales rose 4.1% and Taverns LFL added 3.0%. Leased LFL expected to be up 5% and own-brewed volumes up 6%.

Marston's said it's on target for at least 27 new pubs this financial year.

The board has recommended the interim dividend to be increased 4.3% to 2.4p per share.

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