FLT Trading Halt: Raising $180m in fresh equity today at $14.60 to buy UK-based luxury tour operator Scott Dunn for $220m as they push further into the luxury market, this time focussing on a younger demographic with Scott Dunn’s customer base primarily in the 35-45 year age bracket. This is also a play on affluence with the average spend per booking of $39k meaning less price-conscious consumers which should in theory help FLT margins. While promoting the acquisition, they also increased earnings guidance, with 1H underlying earnings tipped to be $95m which is above prior guidance of $70-90m. A good update from FLT, strong trends in travel clearly helping their business however, the significant increase in shares on issue during COVID continues to hurt the recovery in share price.
MM remains neutral FLT ~$16
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