THOMAS Cook’s value dropped by nearly £400m after the chief executive announced she was stepping down – despite saying just five days ago that it would take years to fix the company.

Harriet Green, who was hired two years ago when the tour operator was worth just £148m, announced she was leaving because her “work was complete”.

But the market value of the company nosedived from £2bn to £1.56bn after it was revealed she told a Management Today conference last week that “we are absolutely not done”.

She added: “You cannot do a transformation on this sort of scale in a year or two years. I usually say it is about six years.”

Her departure coincides with the release of the tour operator’s annual results, which show revenue is down from £9.3bn in 2013 to £8.6bn this year.

The results also show a pre-tax loss of £114m, compared to £163m loss last year, although underlying profits before interest and tax rose by 44 per cent to £323m.

The businesswoman, who was paid nearly £3m last year, was part way through a programme of cuts designed to save £800m by 2018.

Announcing her departure she said: “The transformation of Thomas Cook into a company with a market capitalisation of just under £2bn and a share price of over 130 pence is one I have been proud to lead.

“I always said that I would move on to another company with fresh challenges once my work was complete. That time is now.

“I wish all of the team at this re-energised company continued success, as they move to the next phase of the company’s development.”

The 52-year-old, who won Veuve Clicquot businesswoman of the year in May, has been replaced by chief operating officer, Peter Fankhauser, who will take over with immediate effect.

Mr Fankhauser said: “I feel honoured to be leading this business which means so much to so many people.

“I am determined to work with all our great colleagues worldwide to build on Harriet’s achievements, continuing to deliver great holidays for consumers and good returns for investors.”

Frank Meysman, chairman of Thomas Cook, added: “We emerge from her transformation stronger, with a clear strategy, world-class leadership team, updated brand, and a renewed focus on the customer.”