First Choice has been focusing on specialist holidays to drive sales

The UK group, which has been cutting costs in the face a slump in tourism, saw its pre-tax profits jump to �87.1m ($151.2m) in the year to 31 October.

First Choice's upbeat outlook comes despite lagging sales for summer 2004 as customers continue to book their holidays later than usual.

The company said in October that it expected to hit its full year targets.

Analysts forecasts had ranged from �80m to �85m, with a consensus in the region of �83.1m.