Australia's largest travel agency, Flight Centre, has posted a 72 per cent plunge in annual net profit, but says early results for the new financial year are encouraging.
Flight Centre posted a net profit of $38.164 million for the year to June 30, down from $134.78 million in the previous financial year.
The bottom line result was affected by $59.4 million in one-off asset impairment and writedowns, plus $38 million in US trading-related losses and expenses.
The company's pre-tax profit was $40.4 million for 2008-09, down from $201 million a year earlier, which was in line with company guidance of between $36 million and $40 million.
"Flight Centre starts 2009-10 with some positive momentum from the fourth quarter of 2008/09 and early results for the new year are encouraging," the company said on Tuesday.
The company said it would initially target a pre-tax profit between $125 million and $135 million in an improving but still uncertain trading climate during 2009-10.
Flight Centre said it would declare no final dividend, opting to preserve cash.
"Flight Centre's board expects to restore its policy of returning 50 to 60 per cent of net profit to shareholders as soon as it is reasonable to do so," the company said.
Flight Centre said sales results were affected by a slowdown in global demand during the second and third quarters and lower than normal yields late in the year, reflecting unprecedented airline and land operator price discounting.
Flight Centre said it improved its net debt position during 2008-09, with debt at $128 million, down from $161 million one year ago.
AAP