One-off costs and a weak Australian market have hit the
after-tax profit and earnings before interest and tax (ebit) of
camper van rental company Tourism Holdings Ltd (THL), but
mergers last year are beginning to bear fruit.
While revenue for the year to June rose 12%, from $200
million to $225 million, ebit decreased 10%, from $16.3
million to $14.6 million, and after-tax profit fell 16%, to
Chief executive Grant Webster said the 2013 results were not
directly comparable to the previous year, because of a
''number of one-off factors'', including $1.4 million in
merger costs from the acquisition of Kea Campers and United
Campervans, a $4.5 million ebit contribution from Kea and
United, and also that the previous year the company had
benefited from an estimated $4.5 million from Rugby World Cup
THL declared a 2c dividend, bringing the total for the year
to 4c. After the announcement yesterday, its shares were up
5% at 63c, albeit on low volumes.
Craigs Investment Partners broker Peter McIntyre said, while
the total 4c dividend was a show of confidence from the
company's board, investors may remain ''cautious''.
''Investors are going to need more convincing and will be
watching closely over the next 12 to 18 months on how well
the merger has bedded in,'' he said.
Mr Webster said the merger was now ''fully implemented'' and
based on early-season bookings, which represent about 25% of
high-season bookings, he expected New Zealand to see
double-digit hire growth, while the United States was showing
''Longer term, the reduction in industry capacity in the
market should underpin earnings growth in the coming years to
achieve acceptable returns,'' he said.
However, conditions were challenging in Australia with its
weakening economy, and relatively high dollar, while core
European markets were ''still weak'', he said.
THL's annual shareholders' meeting is in November, where a
half-year financial forecast will be delivered.