TUI Travel reveals record year of profits

TUI Travel posted Friday a record year of profits following strong performance in UK markets and improved operational efficiency.

The FTSE 100 leisure company reported an operating profit increase of 12% to £526m on a constant currency basis for the year ended September 30th, 2012.

The group's underlying operating profits were £490m, up from £471m a year ago.

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UK business activity contributed to the company's growth with a record underlying profit of £197m compared to £149 in 2011.

The results were also driven by revenues from international expansion across online bookings for accommodation. Online accommodation profits were up 3% to £35m.

"This has been a year of record success across the group, proving that our strategy is delivering results," Chief Executive, Peter Long, said in a statement.

"...These are the results of a resilient and flexible business with the right strategy for the market and a large number of colleagues who care about our customers, are passionate about our leisure travel experiences and can plan, implement and deliver growth."

The final dividend rose modestly to 8.3p per share from 8.0p in 2011, resulting in a full year dividend of 11.7p per share, up from 11.3p.

The company will hold its annual general meeting on February 7th to address shareholders about the results.

Shares were down 1.11%to 285.00p at 11:20 Friday.

RD