THL result soars as major investment looms
NZX-listed tourism operator Tourism Holdings Ltd (THL) has nearly doubled its annual profit as it expands to become a global company.
Chairman Rob Campbell said the company had made another record profit from trading of $37.5 million, up 24 per cent, on turnover of $426m, up 25 per cent.
‘‘We are now embarking on a major change. We are in the midst of reallocating financial and intellectual capital to global growth,’’ Campbell said.
‘‘Our core values are unchanged and we respect our heritage, but we are no longer simply a New Zealand story.
‘‘We intend making this transition while maintaining a positive income distribution policy, but the focus is on global growth, which requires reinvestment.’’
THL is the largest provider of vehicles for rent and sale in Australia and New Zealand, and the second largest in North America, through joint ventures.
Profits in the next 12 months will undershoot the performance of 2018, due to investment in the United States, even though core operating earnings will increase.
THL chief executive Grant Webster said the profit report was ‘‘complex’’, featuring one-off gains, US tax changes, the first full year of results from its El Monte rental business, and exchange-rate movements.
The creation of the US-based TH2 joint venture would be the highlight of next year, Webster said. TH2 will buy Roadtrippers, as well as THL assets Mighway, CamperMate, and several management technology systems.
The total net profit after tax of $62m included a $24m one-off noncash accounting gain from the sale of THL’s assets into the US joint venture.
Excluding a special one-off $24m accounting gain, the aftertax profit was $37m. The fully imputed final dividend was 14 cents a share, taking the fullyear dividend to 27c a share. Net debt rose to $199m, up $23m.
Within New Zealand, THL operates Kiwi Experience and the Discover Waitomo group, which includes Waitomo Glowworm Caves, Ruakuri Cave, Aranui Cave and The Legendary Black Water Rafting Co.
THL is also a joint venture partner in Action Manufacturing LP, New Zealand’s largest motorhome and specialist vehicle manufacturer.