Chairman's statement
Growing in strength
Dr Michael Frenzel
Non-Executive Chairman
We have again delivered a strong set of results against a backdrop of challenging economic conditions and exceptional cost inflation from jet fuel prices and currency movements. Our performance in 2009 proves that the flexibility and diversity of our model works and is testament to the strength of our management team and our market-leading brands.
Two years on from the formation of TUI Travel, we have made substantial progress in implementing our strategic imperatives and delivering our roadmap. We are on track to achieve our synergy target and have successfully resolved a number of key strategic issues identified at the time of the merger. Some underperforming businesses remain and we are confident that we can turn these around. We are focusing increasingly on the significant growth opportunities identified within both the Mainstream and Specialist Sectors, which I believe will deliver superior and sustainable long term growth.
Results
The Group has achieved an 11% increase in underlying operating profit to £443m, (2008: £398m) on slightly lower revenue of £13,863m (2008: £13,932m). Underlying profit before tax is up 15% to £366m, (2008: £319m). Underlying earnings per share increased by 17% to 23.8p, (2008: 20.4p). The Group statutory loss before taxation was £52m (2008: £267m).
Dividends
The Board is recommending a final dividend of 7.7p per share. On 19 May 2009, the Board recommended an interim dividend of 3.0p per share, thereby resulting in a full year dividend of 10.7p per share (previous year 9.7p). The Group has a progressive dividend policy and will look to maintain underlying dividend cover at just over two times.
Board
Christoph Mueller resigned as Aviation Director and subsequently left the Board in May 2009. In October 2009, Horst Baier was appointed as a Non-Executive Director. The Board is composed of a majority of independent Non-Executive Directors.
Colleagues
Providing special holiday experiences to our customers is down to the hard work and enthusiasm of our colleagues. Our colleagues are at the heart of achieving our objectives and successes and we have outstanding talent at every level of the business. I thank them on behalf of the Board.
Sustainable development
Sustainability is important to our customers, colleagues and ultimately our shareholders. We are aware of our responsibility to manage our impacts on the environment and people. Climate change is the greatest environmental challenge facing humanity and we recognise that we contribute to global carbon emissions, particularly through our aircraft operations. We work hard to reduce this impact and I am pleased to report that our emissions compare favourably with our peers.
Dr Michael Frenzel
Non-Executive Chairman
