Updated: Thomas Cook shares slump again

The price had fallen to below 12p by mid-afternoon, compared to 19p on Thursday (16 May) and £1.39 a year ago. Thomas Cook’s previous share price low was 13p, reached in 2012 following a disastrous summer.

Friday’s slump followed publication of research by analysts, including those at Citigroup, which said the company’s £738 million value was now outweighed by its £750 million debt.

Citigroup cut its target price for the shares from 28p to zero. Cook revealed a £1.46 billion half-year loss on Thursday, but £1.1 billion was due to the writing down of assets from the 2007 merger with MyTravel.

In the unlikely event a company’s share price falls to zero, investors lose all their money, but it does not mean the company ceases trading, as it can still be generating cash and using borrowed funds to continue.

TTG has contacted Cook for a comment.