Flight Centre Limited Boosts 2007/08 Outlook

Flight Centre Limited (FLT) has boosted its outlook for 2007/08, following a strong start to the fiscal year.

Preliminary trading results for the five months to November 30 2007 point to an $85-$90million pretax profit for the first half, a 60-70% improvement on the previous corresponding period.

During the six months to December 31 2006, FLT recorded a $53million half year result, excluding the abnormal gain from the company’s Adelaide Street building sale.

FLT managing director Graham Turner said while results during 2006-07’s first half were relatively disappointing strong growth in 2007/08 pointed to a healthy full year outcome.

“Operational improvements and good trading conditions generally have fuelled strong global sales growth and laid the foundations for the full year,” Mr Turner said.

“Total transaction value continues to track above our target of 15% annual growth. The second half of 2006/07 was, of course, an extremely strong period, so it will be difficult to maintain this growth trajectory for the full year.

“Based on our performance year-to-date and with a small second half profit contribution likely to come from the Liberty acquisition in the United States, we now expect in the order of 25% growth in pretax profit for the full year.”

During 2006/07, FLT recorded a $151.6million pretax profit, excluding the abnormal building gain.

FLT will release its half year results on February 26 and expects to provide additional commentary on its full year outlook at that time.