No designs on Ansett says THL

By KARYN SCHERER

New Zealand's biggest tourism company, Tourism Holdings, has quashed speculation it is considering spreading its wings through a stake in Ansett New Zealand.

One of its directors, Chris Alpe, has been rumoured to be eyeing Ansett, but managing director Dennis Pickup yesterday "categorically denied" the suggestion.

"Neither THL, nor any of its directors, have been approached and if we were approached we would not be interested," he said.

His comments came as the company revealed a healthy increase in profits for the six months to the end of December.

While revenue increased 18 per cent to $96.5 million, its pre-tax profit more than tripled to $15.1 million. Its bottom-line profit also nearly doubled, to $7.6 million.

While the company conceded it had been greatly helped by a buoyant tourism market, it noted that its acquisition of one of its major rivals, Australian-based campervan business Britz, had gone smoother than planned with better-than-expected cost savings.

The merger with its own Maui campervan business has so far resulted in the closure of 11 depots in New Zealand and Australia, and the loss of 30 jobs.

The purchase has meant THL is now the world's largest campervan rental operator, with a big chunk of its revenue now reliant on the Australian tourism market.

Both Maui and Britz also operate in South Africa, although these arms have been tagged for sale.

It is negotiating with five potential bidders, and hopes to sell the business before the end of June. It is also still hoping to sell the Treble Cone skifield within the next three years.

Earnings before interest and tax from its coaching business were up 35 per cent compared to last year, while its earnings from attractions such as Kelly Tarlton's and Waitomo Caves were up 20 per cent.

Even on a like-for-like basis, revenue across the business was up by 15 per cent.

It expects to reap a bonanza from the international publicity surrounding the America's Cup, although Mr Pickup said it remained concerned about airline pricing, particularly in the lead-up to the Sydney Olympics.