24 September 2018 – trading statement
The travel operator has issued a profit warning, stating that the results for the year to 30 September will be less than expected. The company has suffered from the hot weather in the UK over the summer which has meant that many people have delayed booking holidays abroad – in turn this has also led to increased competition from other tour operators as significant discounting has taken place. The long hot summer has also impacted winter trading. The fall in the share price has left the stock looking cheap with one broker estimating that the shares trade on only 8 times 2018 earnings. The full year results are due to be announced on 29 November and another update will be given then. Clearly, this is disappointing news for investors nut we do not believe that selling at the current depressed price makes sense. Existing holders should hang on – HOLD.