THL posts record profit

TOURISM Holdings Limited (THL) has more than doubled its Net Profit After Tax to NZ$62.4m for the year ending Jun 2018, up 107% on the NZ$30.2m posted in the same period last year.

The record result was fuelled by a 25% surge in revenue to NZ$426 million, as well as a NZ$24.3 million one-off non-cash gain as a result of the formation of TH2 - a digital joint venture business with American RV manufacturer Thor Industries.

The latest financial report indicates the new TH2 business would be a focus for investment in the next 12 months.

“The creation of TH2 would be the highlight of the year, given the potential of this business,” said THL chief executive officer Grant Webster.

“We have made the decision to invest in this business in FY19 to create an even better product and to develop the market faster.”

Despite the positive bottom line, net finance costs for the 12 months to Jun increased to NZ$9.38 million, up from NZ$6.68 million reported in 2017.

“In many ways this is a complex result with the one-off gains, USA tax changes, the first full year of El Monte and exchange rate movement impacts,” Webster said.

The company has also flagged a need to “address New Zealand vehicle sales shortfalls” in the first quarter of FY2019.