Thomas Cook first half losses narrow, says it expects to resume dividend next year

Tour operator Thomas Cook said on Wednesday that its dividend payment could resume next year as it reported a narrowing of its first-half operating loss to £220m from £283m, despite falling revenue.

The company attributed the narrowing of the loss to a decrease or complete removal of costs associated with restructuring, goodwill impairments, the disposal of assets and finance-related charges.

Revenue fell to £2.7bn from £3bn, and net debt now stands at £700m from £811m.

“I am confident that we can continue to make Thomas Cook a stronger and more profitable holiday company, as we continue to implement our clear strategy for profitable growth, and move towards the resumption of dividend payments in respect of full-year 2016 earnings,” said chief executive Peter Frankhauser.

The company has come under scrutiny recently after a court found that it had breached its duty of care when two children died from carbon monoxide poisoning at one of its resorts in Corfu.