Tourism Holdings lifts annual profit forecast, shares rise 26 Nov 2014
Related articles
- NZ consumers grow more upbeat, may resume spending Business
- Minister launches SmartGate in Wellington Travel
- Brownlee Leads Aviation Mission To Shanghai News
- Trams to make a comeback on Auckland’s streets News
- Authentic Kiwi hospitality for 2011 rugby fans Property
- Unique website launched for Rugby World Cup Sport
- Knowles quits as CEO of KiwiBank Business
- Snow on The Remarkables Living
- NZ migration bolstered by British invasion Migration
- NZ manufacturing activity reaches highest since 04 Business
Tourism Holdings lifts annual profit forecast, shares rise
By Suze Metherell
Nov. 26 (BusinessDesk) - Tourism Holdings, the biggest campervan rental company in Australia and New Zealand, said annual profit may rise as much as 44 percent on increased sales and lower costs. The shares rose to a six-year high.
Profit is expected to be between $15 million and $16 million for the year ended June 30, 2015, up from $11.1 million it recorded this year, and up from a previous forecast of $15 million, chairman Rob Campbell told shareholders at their annual meeting in Auckland. The profit growth would follow a 192 percent rise in earnings in the 12 months ended June 30.
The company flagged a potential 6 cents-per-share dividend at the half-year, up from 5 cents per share a year earlier, and will confirm in February. It expects profit to rise 60 percent to $4 million in the six months ending Dec. 31 and plans to reduce debt 12 percent to $85 million.
Tourism Holdings has improved earnings across its business by selling off excess fleet capacity and lifting its profit margins. The company is looking to leverage earnings from New Zealand's booming tourism market to fund growth in the international motor-home market. The company said it expects profit increases in the coming year to be led by growth in its local and Australian rentals businesses, as well as cost cutting.
"The goals set out last year have been achieved, they are a maker on the road, moving Tourism Holdings to a position where the long run returns, regardless of cyclical issues, meet reasonable investor expectations," Campbell said in a statement. "Tourism Holdings is only part of the way through a major change in the nature of its business. The potential for growth in the scope, scale, earnings and shareholder value is exciting."
Tourism Holdings is downsizing its fleet, after buying its New Zealand rivals United Campervans and KEA Campers in 2011 to reduce total campervan numbers and improve margins. The company received $65 million from vehicle sales in 2014 and expects to continue to reduce its Australian and New Zealand fleets in the coming year, generating an expected $50 million to $60 million of sales, while its US fleet is likely to expand.
"It would be fair to say we still have indigestion from the mergers and acquisition over the past couple of years from an operations, brand and product perspective," chief executive Grant Webster said. "We will fix that over the coming year."
Shares of Tourism Holdings rose 4.8 percent to $1.75 and have gained 78 percent since the start of the year.
(BusinessDesk)
News
Hilary Timmins' Award-Winning UK Documentary Series To Inspire NZ Students
29 Jun 2020 Education
Dream Catchers, produced and directed by Hilary Timmins, celebrates the success stories of more than thirty inspirational New... more
New Zealand reaffirms support for Flight MH17 judicial process
7 Mar 2020 News
Ahead of the start of the criminal trial in the Netherlands on 9 March, Foreign Minister Winston Peters has reaffirmed the need to... more
Business
NZ Government's Economic package to fight COVID-19
17 Mar 2020 Business News
The Coalition Government has launched the most significant peace-time economic plan in modern New Zealand history to cushion the... more
NZ Government announces aviation relief package
19 Mar 2020 Business News
Transport Minister Phil Twyford today outlined the first tranche of the $600 million aviation sector relief package announced earlier... more
Living
Diversity was Key at New Zealand Trade Tasting in London
6 Jun 2022 Food & Wine
New Zealand Winegrowers Annual Trade Tasting was recently held in London, on Wednesday 4 May, in Lindley Hall.
It was the first... more
Kiwi author stuns Behind the Butterfly Gate
12 Jan 2022 Arts
Hidden behind the Butterfly Gate is where the secret has been kept for 76 years...
New Zealand writer Merryn Corcoran’s... more
Property
Fairer rules for tenants and landlords
17 Nov 2019 Property
17 NOVEMBER 2019
The Government has delivered on its promise to the over one million New Zealanders who now rent to make it fairer... more
New Zealand Government will not implement a Capital Gains Tax
17 Apr 2019 Property
The Coalition Government will not proceed with the Tax Working Group’s recommendation for a capital gains tax, Jacinda Ardern... more
Migration
Boosting border security with electronic travel authority – now over 500,000 issued
19 Nov 2019 Migration
19 NOVEMBER 2019
We’ve improved border security with the NZeTA, New Zealand Electronic Travel Authority, which helps us to... more
Christchurch reinstated as refugee settlement location
18 Aug 2018 Migration
18 AUGUST 2018
HON IAIN LEES-GALLOWAY
The announcement that Christchurch can once again be a settlement location for refugees... more
Travel
Gallipoli Anzac Day services cancelled
19 Mar 2020 Travel & Tourism
The New Zealand and Australian Governments have announced this year’s joint Anzac Day services at Gallipoli will be cancelled... more
New Zealanders advised not to travel overseas
19 Mar 2020 Travel & Tourism
New Zealanders advised not to travel overseas
more
Sport
The Skipper's Diary: Sir Richard Hadlee honouring his father and NZ's Forty-Niners
27 Oct 2019 Cricket
NZNewsUK London Editor Charlotte Everett spoke to Sir Richard Hadlee about why he’s chosen to publish his father’s... more
PREVIEW: All Blacks v England semi-final
26 Oct 2019 Rugby
The two most convincing quarterfinals winners are set to square off in a semifinal showdown for the ages when the All Blacks meet old... more
Columns
Gordon Campbell on the Gareth Morgan crusade
11 Nov 2016 Opinion
Gordon Campbell on the Gareth Morgan crusade
First published on Werewolf
The ghastly likes of Marine Le Pen in France and Geert ... more
Gordon Campbell on the US election outcome
10 Nov 2016 Opinion
Column - Gordon Campbell
Gordon Campbell on the US election outcome
Well um.. on the bright side, there (probably)... more
Kiwi Success
Congratulations to Loder Cup winner
26 Sep 2018 People
25 SEPTEMBER 2018
The Loder Cup, one of New Zealand’s oldest conservation awards, has been awarded to Robert McGowan for 2018... more
Appointments to New Zealand National Commission for UNESCO
16 Aug 2018 Appointments
16 AUGUST 2018Appointments to New Zealand National Commission for UNESCO
HON JENNY SALESA
Associate Education Minister Jenny Salesa is... more
Recruitment
Historic pay equity settlement for education support workers
14 Aug 2018 Recruitment
14 AUGUST 2018Historic pay equity settlement for education support workers
RT HON JACINDA ARDERN
HON CHRIS HIPKINS
Prime Minister
The... more
Historic pay equity settlement for education support workers
22 Aug 2018 Recruitment
14 AUGUST 2018Historic pay equity settlement for education support workers
RT HON JACINDA ARDERN
HON CHRIS HIPKINS
Prime Minister
The... more