Tui Travel has reported an eight per cent rise in annual profits, hailing an “outstanding performance” by its UK business.

The company, which owns Thomson and First Choice, made a profit of £390 million in the year to September 30th.

This is up from £360 million a year ago.

However, revenues fell two per cent to £14.5 billion.

Despite a one per cent fall in British and Irish travellers, UK-based Tui said profits from its home markets rose 32 per cent.

The strong performance at its UK business helped to offset a five per cent fall in French bookings, while in Spain and Italy they were down ten per cent.

Chief executive Peter Long said: “The year has been one of many successes.

“We have delivered record group profits while the UK achieved outstanding results both in terms of profit and margin all against a backdrop of continued economic uncertainty.

“Our proven strategy continues to evolve and drive strong trading momentum throughout the group.”