Thomas Cook Shares Plunge 20% As Boss Quits

Thomas Cook shares tumbled 20% this morning after its chief executive shocked investors by stepping down saying her work was complete, despite the business continuing to make a statutory loss.

The travel operator, which confirmed Harriet Green's immediate departure alongside its financial results for the past year, said she would be replaced by chief operating officer Peter Fankhauser.

Her exit left just nine women in charge of companies in the FTSE 250.

Ms Green was credited with driving a near ten-fold increase in the company's share price during her two-year tenure.

Thomas Cook had a value of just £148m when she took over and her remit was to place Thomas Cook on a more secure financial footing as it struggled to compete in the consumer travel market.

She said today: "The transformation of Thomas Cook into a company with a market capitalisation of just under £2bn and a share price of over 130 pence is one I have been proud to lead.

"I always said that I would move on to another company with fresh challenges once my work was complete. That time is now.

"I wish all of the team at this re-energised company continued success, as they move to the next phase of the company’s development."

Frank Meysman, the firm's chairman, said: "Harriet has had a highly positive impact on this company.

"We emerge from her transformation stronger, with a clear strategy, world-class leadership team, updated brand, and a renewed focus on the customer.

"The succession plan she devised will now take effect and the new chief executive, Peter, will drive the company forward as
we focus on winning the commercial battle against other operators."

Thomas Cook's results statement said there was still "more to do" under its transformation programme which saw it cut loss-making brands, UK stores and 2,500 jobs following a £1.6bn recapitalisation in 2011.

It reported a loss of £114m in the year to 30 September - an improvement on a figure of £163m during the previous 12 months.

On an operational basis, Thomas Cook said all parts of its business were profitable. However, revenues fell 7.8% to £8.6bn, partly reflecting the strength of the pound.

The fall of £727m on the previous year contained a drop of £177m on lower demand for holidays in Egypt, which has endured a dramatic fall in its key tourism business because of political unrest.

The results statement also contained a warning from the company that growth in the current financial year will be hit by tougher trading conditions, which have particularly affected its German and French markets.