Australia’s second largest hotel and resort operator Mantra Group says net profit is consistent with the company’s prospectus forecast following June debut

Australia’s second largest hotel and resort operator Mantra Group is on the hunt for acquisitions after notching up a profit consistent with its full year prospectus forecast.

Mantra, which debuted on the Australian Securities Exchange in June, says the accommodation industry is poised to grow in line with favourable supply and demand factors in full year 2015.

The Sydney-based company said pro forma net profit was $31.2 million which was consistent with its full year prospectus forecast of $30.1 million.

Shares in the company jumped more than five per cent on the news.

Based on the group’s earning capability and cash flow position, Mantra chief executive Bob East said his company was well placed to take advantage of growth opportunities.

“We continue to strengthen our platforms and we are taking advantage of leading distribution capabilities and brand appeal,” Mr East said.

“These factors are also aiding our development team as they continue to sign new properties into the portfolio.”

The company expects to announce its first dividend for the six months to December 31.

Mantra reported a four per cent increase in pro forma revenue to $452.6 million, reflecting improved occupancy levels and average room rates as well as a focus on costs and improved efficiencies.

However, statutory net profit was down $0.3 million which was still higher than prospectus forecasts of $2.2 million.

The company added that it plans to target higher yielding corporate accounts and secure corporate contracts as well as expanding through the acquisition of properties in key CBD and leisure destinations in Australia, New Zealand and the south-east Asia region.

Between January and June 2014, Mantra Group added five new hotels to its network, including two in Brisbane, one in Melbourne, one in Wollongong and the first Peppers property in Bali.

At 1200 AEST Mantra shares were 12 cents, or 5.8 per cent, higher at $2.18.

The group’s shares debuted on the market at $1.85 two months ago.

Mantra Group manages and markets hotels and resorts on 114 properties in Australia, New Zealand and Indonesia under the brands Peppers, Mantra and BreakFree.