Monday, 09 July 2012 08:30
Business News Today: Thomas Cook Group, JJB Sports struggle continues, UK finance bosses see recession lasting through 2012, good news for Rolls Royce.
Thomas Cook Group plc (LON:TCG) has risen by a percent on Friday's closing level to reach 14.90 at 9:05 AM in London. Nevertheless, TCG shares are undeniably under pressure following a Standard & Poor's credit downgrade late last week.
Of particular concern was the view that Thomas Cook retains an "unsustainable" capital position.
"Thomas Cook's capital structure could become unsustainable over the medium to long term," S&P said.
"Our negative outlook also takes into account the increasing risk that the group could possibly undertake credit-dilutive debt restructuring measures." That backdrop could lead the group to break banking covenants "as soon as mid-2013", S&P said.
JJB Sports hopes for a turnaround evaporate
JJB Sports' turnaround hopes have been dealt a blow after the retailer failed to receive the boost it expected from the Euro 2012 championships.
The Wigan-based group, which came close to collapse last year before striking a partnership with American retailer Dick's Sporting Goods, suffered an 8% fall in like-for-like sales in the 22 weeks to July.
UK CFO's see recession continuing through to end of 2012
Finance directors believe there is a one-in-two chance of the double-dip recession lasting until the end of the year and four-fifths believe it would be better to delay investment plans due to the current uncertain environment, according to Deloitte’s CFO survey. Confidence among the group in the second quarter dropped to a five-year low.
Good news for Rolls Royce
We end the news roundup on a positive note!
Rolls-Royce has landed a $183m contract to supply the US Army with helicopter engines.
The contract, to support 500 M250 engines on more than 300 OH-58D Kiowa Warrior scout helicopters, will last a year, with the US having the option to extend it for another four years.
Rolls-Royce has supported the Kiowa Warrior fleet for 13 years, with the Kiowa Warriors completing more than 2m flight hours, including more than 750,000 hours in combat.
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