Gullivers half year profit puts them on track

Gullivers Travels today announced a maiden $5.67 million September half year net profit that it said was in line with last year's prospectus forecast.

The travel company announced a fully imputed 3.746cps dividend to be paid on December 12.

The profit was on total operating revenue of $284m.

Ebitda (earnings before interest tax depreciation and amortisation) was $13.98m, with net profit after tax and before goodwill amortisation at $8.65m.

Although comparable figures were not available for the period prior to listing last year, managing director Andrew Bagnall, said the result was "very pleasing and in line with expectations for the full year".

"The directors remain comfortable with the FY 2006 profit forecast as disclosed in the prospectus of November 2004."

The prospectus forecast earnings per share of 13.8c for 2005, and 14.4c for 2006. Ebitda were forecast at $22.75m for the 2005 year and $24.23m in 2006, up from $18.48 million in 2004.

Mr Bagnall said the strong financial performance was expected to continue in the 2006 financial year provided current operating conditions remained.

The result reflected strong demand for international travel as well as tight control of costs throughout all operations, he said.

After balance date, on October 31, the PIH Group was acquired for $23.1m on 31 October 2005 and it was expected to be profit neutral for the 2006 year with efficiency gains being realised during the next two years.

The directors maintained the dividend policy outlined in the prospectus, whereby 65 per cent of annual net profit after tax would be paid as dividend with 40 per cent paid in the first half.

Gullivers shares closed yesterday on $1.39. The shares were issued at $1.60 last November and closed on $1.59 on their first day's trading on December 15.

- NZPA