Thomas Cook’s (LON:TCG) chairman Frank Meysman has bought 150,000 shares in the firm, signalling confidence in the prospects of the travel group after its recent profit warning.
The travel group saw its shares plunge by over a fifth on Monday after it cut its 2018 profit outlook, blaming a heatwave in northern Europe over the summer which meant there was more discounting and tougher competition in the later part of the holiday season.
READ: Thomas Cook plunges as 2018 profit outlook chopped on more discounting, tougher competition after summer heatwave
The 177-year old company now expects its core underlying earnings (EBIT) to come in at around £280mln for the 12 months to September 30, below a previous £323mln-£355mln range, it said in a pre-close trading update on Monday.
However, Thomas Cook’s Meysman has backed the company’s prospects by splashing out close to £90,000 on 150,000 of its shares.
Shares in Thomas Cook, which have more than halved in value during 2018, were 0.25% down at 59.65p in late afternoon trade.