Thomas Cook shares jump after cost-cutting measures

<p>Stocks in Thomas Cook rose sharply on Wednesday.</p>

The share price of Thomas Cook saw a big jump in yesterday's (March 13th) trading on the back of news the holiday company announced a fresh range of cost-cutting measures.

Stocks were up by 15 per cent in the morning session as investors responded strongly to the move from the firm's new chief executive Hannah Green.

She confirmed that she is aiming for a sales growth of at least 3.5 per cent a year by 2015, as well as an operating profit margin of more than five per cent or more by the same deadline.

Mike van Dulken, head of research at Accendo Markets, told Investment Week: "Announcements of this nature are always good news for shareholders, with share prices benefiting from the prospect of better margins boosting profits growth and thus potentially dividends."

The strong performance of Thomas Cook shares has continued in this morning's trading. At 08:30 GMT, stocks were up by more than five per cent and stood at 105.80.

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