21 July 2008

Flight Centre profits up 40%

Flight Centre has this morning just released preliminary financial results for 2007/08 and reaffirmed its expectations for 2008/9

The release says that following a solid finish to the year pre tax profits will be expected to be up by 40% when the Company releases its audited full year accoutns on August 26.

The Company believes that its final result will be in the order of $212m, compared to its record 2006/7 result of $151million.

It added that as announced previously, the company will be disappointed if it does not achieve a further 10-15 per cent pretax profit growth during 2008/09" .

CFO Shannon O'Brien said that FLT's established businesses in S Africa, New Zealand and the UK, were expected to drive profit growth in 2008/9 along with Australia, where the "strong dollar, near full employment and the availability of cheap international airfares continued to stimulate demand."

He added, "With the momentum we have built globally and the strategies we have in place for overall improvement, we start 2008/9 in a position of strength."

"Our businesses continue to perform reasonably well, in particular in our established markets and there is opportunity to grow our leisure, wholesale, and corporate travel brands in all geographies."

As we continue to develop, our focus will be on organic expansion, but we will also consider strategic acquisitions and joint ventures in niche and growth sectors from time to time.

Shannon O'Brien will also assume the role of CEO for the remainder of 2008 and early 2009 while Graham Turner is on extended leave.

A Breaking News report by the Mole