Flight Centre (FLT) will go ex dividend on 5/3/2010. The current dividend payment is 26 cents and it is 100% franked. The record date is 12/3/2010 and the dividend will be paid on 1/4/2010. Based on the full year payment the dividend yield is 1.4%.
*Current Yield: 1.4% Franking: 100% DRP Discount: Not Available
*Yield has been calculated on the closing price on the 26/2/2010. Current yield is based on the current dividend payment only.
The Flight Centre share price has been travelling steadily upwards for some time now (see the chart below!), and the trip could well continue now that the CFO has indicated the start of the new financial year has been encouraging for the company.
With cautious optimism Andrew Flannery told investors yesterday that the Australian travel industry has recovered faster than than others around the world, that the strong Aussie dollar and cheap airfares have stimulated demand, but that predicting a full recovery would be premature.
“While yields remain significantly down on last year, prices appear to have bottomed and the cheapest deals have become harder to secure,” he said.
Flight Centre Limited
ASX Code: FLT
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Flight Centre shares soared yesterday, up 20% after the company announced it expected to post an annual net profit of $36-40 million and indicated that conditions in the challenged industry were stabilising.
In a results forecast released to the ASX, Flight Centre showed a strengthened balance sheet, and pre-tax profits well above analysts’ expectations.
There was good news too from the company’s US arm Liberty, which broke even in the fourth quarter.
The company said there were positive signs showing for the industry, with cheap airfares and holiday deals stimulating demand.
The full year accounts will be released on August 25.
ASX Code: FLT
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For more details on this news story:
Flight Centre Limited (FLT) announced that during the six months to December 31, 2008, the company’s established businesses (excluding United States acquisition Liberty) achieved a $77.7million pretax trading profit. This compares to a record $90.9million pretax profit in superior trading conditions during the previous corresponding period and a $53m trading result two years ago.
The acquisition of Liberty however significantly reduced the profit. Losses from Liberty as well as non recurring restructuring expenses and losses from the investment portfolio significantly affected the profit for this period. These combined losses amounted to $43.5million, giving FLT an actual pre-tax result of $34.2million, in line with recent guidance. Overall, the company’s after tax profit result was $26.1million.
Sluggish sales globally during the second quarter impacted on FLT’s results, following a reasonable first quarter of profit and total transaction value growth.
FLT’s directors today declared a $0.09 per share fully franked interim dividend payable on March 27 2009 to shareholders registered on March 6 2009. This represents a 34% return of after-tax profit to shareholders, outside of FLT’s current policy of returning 50- 60%, subject to the business’s needs. While the company does not currently intend to alter its policy permanently, FLT’s board believes the reduced pay-out is prudent in the current climate.
A federal Transport Department report released this week shows international travellers were flying in record numbers in 2008.
The Managing Director of Webjet has confirmed that ticket sales rose in the second half of 2008, and have continued strongly in the first few days of the new year.
In the Herald-Sun today Geoff Easdown has noted that the popularity of the new A380 may be shielding Qantas from the worst of the economic storm, by carrying profitable loads of passengers between Australia and the United States. Another A380 will begin flying on the London route next week.
Unfortunately however, Tourism Australia is anticipating falling numbers of international visitors this year, contributing to what The Age is describing as a mixed picture for the tourism industry .
Stocks for your watchlist:
QAN: Qantas
VBA: Virgin Blue
AIZ: Air New Zealand
FLT: Flight Centre
WEB: Webjet
Further Information:
http://www.news.com.au/heraldsun/story/0,21985,24885000-664,00.html
http://www.theage.com.au/travel/travellers-snap-up-cheap-airfares-20090106-7atd.html
Reuters News Feed through Market Analyser
