Flight Centre shares surge 15%

Flight Centre shares surge 15%

Flight Centre shares have surged 15 per cent after the travel retailer reported a better than expected full year profit and flagged a better year ahead.

The company’s underlying pre-tax profit slipped 3.4 per cent to $363.7 million, which was at the upper end of its own guidance and above analysts’ expectations.

And the company has flagged growth of between four and eight per cent for the year ahead, citing improving conditions in its core Australian market and the strength of its overseas operations.

“Overall, FLT has started the new year reasonably and, based on year-to-date trading results, is currently tracking broadly in line with its annual PBT (profit before tax) growth target,” chief executive Graham “Skroo” Turner said.

“In Australia, consumer confidence remains relatively subdued but we are seeing positive momentum in leisure travel, with customer enquiry currently tracking above target and sales in key sectors continuing to grow.”

Investors cheered the result, sending shares up $4.57 to $36.83 as of 1304 AEST on Thursday.

The group’s net profit climbed 24 per cent to $256.55 million in the year to June 30 from $206.9 million in 2013/14 while total revenues rose 6.8 per cent to $2.4 billion.

It also kept its fully franked final dividend flat at 97 cents.

FLIGHT CENTRE

* Net profit up 24pct to $256.5m

* Revenue up 6.8pct to $206.9m

* Final dividend flat at 97 cents.

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