Tourism Holdings' (THL) presentation is being delivered to Australian fund managers over three days this week as an ''introduction and update'', which follows the late-August release of its full year report, including its 80% after tax profit gain to $20 million.
Craigs Investment Partners broker Peter McIntyre said the presentation to Australian funds was probably aimed at increasing their interest in holding stock, which could benefit THL in several ways.
''Once companies get institutionals on board, it increases research interest [from published analysts' reports] and then more shareholder interest.
''It has a way of building on itself,'' he said.
The presentation makes no mention of any capital raising and reiterated that THL believed it had significant balance sheet flexibility which would be used to focus on value accretive acquisitions, both globally or domestically.
For its year to June, THL booked a 4% increase in revenue to $237million, a gain of 42% in earnings before interest and tax to $32million, and after-tax profit rose 80% to $20million.
THL's chairman said at the time he expected that in four years the existing business would achieve a more than $30million after-tax profit.
In the presentation, THL spelt out its business model as operating a ''build, rent, sell'' model for its recreational vehicle businesses, which operates a total 3697 vehicles in New Zealand, Australia and the US under several brands.
It also operates several New Zealand tourism sites, and its annual sales were up 14.5% on a year ago at $29.9million.
Mr McIntyre said if institutional shareholders were to come on board - taking 5% to 10% stakes - there could be a wider variety of shareholders, improved liquidity in the stock and better analysis.
From a profit slump in 2009, THL went on to book a loss in 2011, before restructuring and returning to increasing its profits annually.
THL's share price in September 2013 was 75c, then $1.44 a year later, and most recently has been trading around $2.
The presentation said THL led a New Zealand industry consolidation in 2012, buying two of the four main competitors in the large motorhome market.
Then another competitor went into receivership and left the market in 2013.
In Australia, THL had reduced fleet to ''right-size'' during the past two years, with Apollo the only significant competitor in the large motorhome market and with no known new entrants since the global financial crisis.
