THL forecasts an improved full-year result. Pictured is a
view of Mt Sefton from Mount Cook Rd. Photo supplied.
Listed Tourism Holdings Ltd has advised it expects to
''meet or exceed'' earlier profit guidance and debt repayment
is ahead of expectations.
The largest holiday vehicle rental business in New Zealand
and Australia, Tourism Holdings (THL) has disappointed in
recent years, but a merger has underpinned a turnaround in
Craigs Investment partners broker Peter McIntyre said THL had
been a ''perennial underperformer'', but after post-merger
rationalisation of its expanded vehicle fleet, investors had
growing confidence it was capable of delivering on its
strategies and plans.
THL shares were up 7% at $1.20 after the announcement, having
risen from 58c a year ago. The company said it expected to
''meet or exceed'' its February forecast for profit to rise
to $10.5 million for the year ended June 30, from $3.8
million for the previous corresponding period. Net debt for
the year to June 30 is expected to fall to $90 million, below
THL's February forecast of $95 million, and down from $97
million in December.
THL booked a much improved result for the half year to
December, with revenue up 4% at $112 million, and earnings
before interest and tax up $1.9 million at $7.2 million,
while its after-tax profit was $2.5 million, after a $500,000
loss a year earlier. THL's annual result is due for release
on August 26.