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Travel agency group Flight Centre Ltd says it has had a strong start to the 2007/08 year and expects to see a very significant improvement in its first half profit.
The company has forecast a pre-tax profit for the first six months of fiscal 2008 between A$85 million ($96 million) and A$90 million, which would be 60 per cent to 70 per cent higher than for the same period last year.
Flight Centre managing director Graham Turner said strong growth in the first five months of trading for the year 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 per cent 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."
But Mr Turner said the company was expecting about 25 per cent growth in pre-tax profit for the full year, based on the company's performance so far and an expected small second half profit contribution from its Liberty acquisition in the United States.
During 2006/07, Flight Centre recorded a A$151.6 million pre-tax profit, excluding an abnormal building gain from the sale of a building in Brisbane.
The company will release its first half results on February 26.
- AAP
