Thomas Cook makes £163 million loss amid higher costs and heatwave

Peterborough-based travel company Thomas Cook has reported a multi-million loss blaming additional charges and delayed demand for its tour holidays in the heatwave.

The company has released further details of a "disappointing"financial year, two days after its share price plunged following a profit warning.

The group unveiled a loss after tax of £163 million, compared with a profit of£9 million this time last year.

As the company previously flagged in an unscheduled statement on Tuesday, underlying earnings were £58 million lower at £250 million in the year to 30 September.

This was put down to additional charges, including flight disruption, writedowns on money owed by some hotels, and transformation costs, as well as delayed demand for its tour holidays amid the heatwave.

Revenue was up 6% on a like-for-like basis at £9.58 billion.

Shares in Thomas Cook were down 3% in early trading, but avoided a major drop, having already plummeted by as much as 30% on Tuesday.

David Madden, market analyst at CMC Markets UK, said the mood among traders was still nervous.

"The travel operator has been struggling in 2018, and things are getting worse as the year goes on. The group issued two profit warnings in two months, and that has sent investors running scared."