The Courier & Advertiser (Perth and Perthshire Edition)
Operator’s holiday cheer
Holiday giant Tui has shrugged off a summer heatwave hit to its tour operator and airlines division to report a 10.9% rise in annual earnings.
The group said the prolonged hot weather across the UK and Europe, together with the impact of air traffic control strike action and the Brexit-hit pound combined to send earnings in the divisions 14.6% lower to £405.1 million.
But an impressive performance in its hotels and resorts arm and cruises business offset the impact, helping underlying earnings to rise to £1.1 billion for the year to September 30.
Tui admitted it had been a “challenging” year for the tour operator and airlines division and said it expected the issues to continue into 2019.
Winter bookings for 2018-19 are 1% lower, while prices are also down 2%.
Rivals have also been knocked hard by the heatwave and strike action, with Thomas Cook issuing a series of recent profit warnings. However, Tui said it expected earnings to grow by at least 10% again in 2019.
On Brexit, Tui reiterated it remains concerned over flying rights in the event of the UK crashing out of the EU without a deal.
It is in talks with ministers and regulators in the hope of securing a “special agreement” and has begun contingency planning for a hard Brexit outcome.
The group said this included drawing up “scenarios and mitigating strategies for various outcomes” from the current Brexit negotiations. A former Johnston Press senior finance manager is returning to the media sector as STV’s new finance chief.
Lindsay Dixon will take up her new role with the broadcaster in the second quarter of 2019 on the departure of incumbent CFO George Watt.
Ms Dixon is currently group financial controller at distiller William Grant & Sons and previously held the same role at Scottish engineering group Weir.
She qualified with Deloitte and spent her early career in various senior finance roles within Johnston Press.
STV CEO Simon Pitts said: “Lindsay was the stand-out candidate in an extremely strong field and I am delighted she is joining STV at such an exciting time in the delivery of our strategic growth plan.”