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 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.
