Travel group S8 bullish on profits

BRISBANE - Travel group S8 expects to double its after-tax profit this financial year after recent buys including Harvey World Travel and New Zealand's Gullivers Travel.

The Gold Coast-based company recorded an underlying net profit of A$20.9 million ($24 million) last financial year but expects to hit A$44 million this financial year and more than A$60 million in 2007-2008.

Chairwoman Jennifer Hutson told shareholders at yesterday's annual meeting the company's acquisitions had placed it in a strong position.

Hutson said the company was committed to being a leader in European travel. "It has been an extraordinary and exciting 12 months," she said.

"We've got strong established brands and we plan to keep the identity and support those that have delivered."

S8 took over control of Harvey World Travel in September last year, Travelscene in July this year and Gullivers Travel last month.

It now controls more than 2300 travel agents worldwide and 48 resorts across Queensland.

But the company is also subject to a A$700 million takeover bid by fellow Gold Coast entity MFS, which will create a global travel services group worth about A$1.7 billion.

- AAP