Neilson For Sale?

The UK's third largest ski travel operator Neilson is reported to be up for sale again, probably, as current owners Thomas Cook struggle to get on top of their debt burden, reported to be £1.6 billion.

Harriet Green, who became chief executive of Thomas Cook last summer, is reported to be considering selling Neilson as one option to reduce the debt, although so far this appears to be (on going) media speculation rather than an announced policy by the company.

Neilson is a key name in the ski industry, established nearly 40 years ago but having had multiple owners over that time in common with most other major ski travel businesses.
Some commentators report that selling Neilson would also weaken Thomas cook by reducing its income potential, but others say the company can make more money concentrating on winter sun destinations.

The two biggest tour operators are TUI, which own market leader Crystal as well as Thomson and smaller niche brands including Flexiski. Second place Inghams also operates Esprit Ski and Ski Total. Thomas Cook also own the Swiss Travel Service.

According to figures in the annual Ski Industry Report compiled by Crystal (http://mag.digitalpc.co.uk/fvx/crystal/sir2012/), Neilson's market share has been declining for several years and the company took 73,000 people on holiday last season, this is still well ahead of fourth placed Esprit (44,000) and represents around 8% of the UK market.

Maybe our own J2 travel organiser Ally G will put in a bid ...... ?

This has been on the cards for some time, as Harriet Green has got to grips with the mess she inherited.
One area that I was disappointed in was the slow pace at which they have moved with shop closures. We still have two shops 150 yrds apart in our local town. It is daft. I raised that issue with a manager, with whom I have been friends for 30 years. He said "We are both profitable" I suggested that with one base in the town, they would be even more profitable, and hence, more secure.

I now understand the reason, as yesterdays presentation by HG ~ she has assembled a team to move TC into internet sales.

There is good scope here. I know from experience this week, there is room for a big improvement in the current travel set-ups.

The debt is not as reported by Admin. By November, last year, it had fallen to £788m, ie halved in one year. That is not to say that TC are not in jeopardy, because they still have a D/E ratio of 150% ~ with some intangible assets of £3bn. Emphasise "intangible"!

Certainly the shareholders are convinced. Had you bought TC shares a year ago, when the issue was first raised, and when I defended TC's possible outcome, you would have quadrupled your money.

It's the airline they need to bin.

Not enough choice of TO's in the market place and just doing what you can do from home is turning people away .

Tony_H wrote:It's the airline they need to bin.

why?