THL to 'meet or exceed' profit guidance; debt down

THL forecasts an improved full-year result. Pictured is a view of Mt Sefton from Mount Cook Rd. Photo supplied.
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 fortunes.

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.

- simon.hartley@odt.co.nz

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