EXP results fail to excite

ADVERSE trading conditions in Far North Queensland paired with poor weather in New Zealand, are impacting adventure tourism operator Experience Co’s (EXP’s) financial results.

In an address to shareholders at the company’s annual general meeting, Experience Co Chair Bob East said the group’s Financial Year 2019 (FY19) results fell short of expectations, prompting a strategic review of the business.

However, the company said its core skydiving and Great Barrier Reef businesses were well positioned going forward, with favourable weather conditions in Australia contributing to improved tandem jump volume in Q1 2020.

As part of the review the company has revealed it is looking to divest non-core assets including its GBR Helicopters business and Raging Thunder Adventures, while also seeking to secure $5-6m in annualised savings through cost rationalisations.

“EXP’s core business continues to be attractively positioned in key markets,” East said.

“With the strategic review undertaken, the remainder of FY20 will be about executing these outcomes and will see the business consolidate, rationalise and reset for improved performance heading into FY21.”

EXP CEO John O’Sullivan told shareholders the adventure tourism sector in Australia and New Zealand was showing signs of growth, noting the restructure had given the business a “clear focus” on the core businesses, and positioned it to “deliver shareholder returns”.