Thomas Cook has reported strong financial figures for the first half of financial 2015, with the travel agent revealing group revenue increased by £37 million to £2,742 million for the period.

Gross margins were maintained at 21.3 per cent, as improved yield management and cost efficiencies compensated for continued competitive pressures.

However, underlying EBIT improved by £18 million to a £173 million loss, excluding a £5 million benefit from Easter falling earlier this year.

Peter Fankhauser, chief executive of Thomas Cook commented: “Overall the group has made positive progress during the first half. 

“Thanks to the actions we have taken, both profits and like-for-like revenues have grown, and debt has been further reduced. 

“We have formed a promising strategic partnership with Fosun, a leading Chinese investment group, under which we are developing further growth opportunities, both within and beyond our traditional European travel markets. 

“In addition we have signed a new, significantly larger financing facility, giving us improved financial flexibility and liquidity for the future.

“Our performance in the first half provides a solid foundation for the full year and beyond.”

Thomas Cook’s UK business performed particularly well thanks to the business improvement measures taken in the last two years, achieving an LTM underlying EBIT margin of 4.5 per cent up 100 basis points year-on-year.