Flight Centre flying high as share price surges
Written on the 22 February 2018 by David Simmons
Flight Centre (ASX: FLT) has lifted its full year profit guidance after posting a first-half net profit rise of 37 per cent, sending its share price more than 10 per cent higher.
The group posted its first half profit of $102.2 million, on the back of US tax rate changes and the its trong performance in the UK.
Profit before tax during the half was slightly above the targeted range of $120 million to $135 million, which prompted the company to lift its full year guidance.
Flight Centre now expects full-year profit before tax to be between $360 million and $385 million, up from between $350 million and $380 million.
The group also declared a full franked interim dividend of 60 cents, up from 45 cents a year ago.
"Generally, we can be pleased with our performance to date, given that we are tracking at or near record levels in most key financial areas," says Flight Centre managing director Graham Turner.
"We have also made sound progress in executing operational strategies and transformation initiatives that have been developed to fast-track revenue growth and curb costs."
The company also just completed its new in-store system roll-out, with deployment in the Australian and New Zealand leisure businesses bringing the two-and-a-half-year global project to a close.
Shares in Flight Centre are up 11.22 per cent to $55.69 per share at 11.57am AEDT.
Business News Australia
Author: David Simmons