As expected, earnings of Flight Centre took off in the year to June 30 as more Australians travelled overseas to take advantage of a stronger Aussie dollar.
In fact earnings more than tripled to record levels as the company enjoyed soaring ticket sales and improved margins, a far cry from the GFC-induced slump endured in the 12 months to June 2009.
The company has lifted earnings guidance several times in 2009-10 as the impact of the rising travel volumes hit the bottom line.
Net profit was $139.87 million for the 12 months to June 30, up 266.5% from 2009.
That was struck on just a 4% rise in revenue to $1.80 billion.
"FLT’s underlying pre-tax profit (before impairment and non-recurring items) was $205.1million, a result well above its initial target of a $125million-$135million PBT," the company said.
"Non-recurring items included $6million in expenses incurred in the USA and $600,000 in impairment relating to FLT’s head office property in South Africa," the company told the ASX yesterday.
And Flight Centre was confident enough to forecast an improvement in 2010-11, despite what it said was "some ongoing volatility".
The company expects profit before tax to end up in a range of $220 million to $240 million in the year to June 30, 2011, compared with $198.5 million for the year just ended.
"While it is extremely difficult to forecast results at this early stage, we will be disappointed if we don’t improve on last year, given the momentum established in 2009/10 in most countries and most businesses," managing director Graham Turner said in the statement.
He said the current year had started with "good momentum" from 2009/10, with "healthy profit and sales results" in July.
The company declared a final dividend of 44c, fully franked, compared to no final payment for 2009.
All up Flight Centre will pay total dividends for 2010 of 70c a share (including a 26c a share interim), against the 9c a share interim paid in the 2009 financial year.
The shares rose 3%, or 55c, to $19.
The company said, "General cash totalled $322.3 million at June 30 2010, compared to $160.9 million one year earlier, and was part of a $999.5 million global cash and investment portfolio.
"This portfolio consists of company cash, cash that accumulates within FLT under its business model and airline, hotel and other supplier creditors.
"Total debt at June 30 2010 was $178.1 million, giving FLT a $144.2 million positive net debt position at year-end."
Online jobs agency Seek saw profit jump 62% in the year to June as the Australian jobs market staged a remarkable turnaround from the depressed time in 2009.
Thanks to the rebounding economy and especially the resources boom in Western Australia and Queensland, unemployment has fallen sharply as more than 300,000 jobs were created in the year to June.
Being the biggest player in the online jobs market, Seek took advantage of that and saw revenue and profits rise accordingly.
Seek said yesterday that net profit for the year to June 30 was $89.521 million, up from $55.3 million in the prior corresponding period.
The market consensus was for net profit to be $79.7 million.
Revenue was up 34.7% at $280.732 million, the company said in a statement to the ASX yesterday.
Seek declared a final dividend of 6.7c a share, fully franked (4.7c in 2009), making a total for the year of 11.9c a share (9.2c in 2009).
But the market wasn’t impressed and the shares fell 24c, or more than 3%, to $7.39 yesterday.
Seek joint chief executive Paul Bassat said the company was well positioned for further growth.
"There are still segments in the market where Seek is under-penetrated and the majority of job ad spend still resides in print," Mr Bassat said in the statement.
"If the current labour market trajectory continues, expect Seek to be the primary beneficiary given its market leading position and exposure to favourable structural trends."
Mr Bassat said Seek had "experienced sustained and consistent month on month growth in job ads’’, with online job ad volume growth outpacing growth in print job ads over the period.
"This reflects the trend of continued structural migration from print to online with online now capturing approximately 80 per cent of all job ads."
As well as its Australian job ads website, Seek also has interests in jobs websites in Brazil, China, South East Asia and Mexico.
Seek also has an education arm, offering training and student placement services.
The company said its education business reported revenue growth of 36% and earnings before interest, tax depreciation and amortisation (EBITDA) growth of 41% in 2010.
Mr Bassat said the company’s outlook for long-term growth was supported by its overseas investments in fast-growing, emerging economies.
"Seek has leading positions in exciting emerging markets which provide us with a substantial growth platform,’’ Mr Bassat said.
"Given the combined growth opportunities in employment i
