KEY POINTS:
Tourism operator Tourism Holdings reported today a 22 per cent increase in full year net profit on strong trading.
It posted a June year net profit $13.4 million compared with an $11m profit the year before.
The company, the subject of an unsuccessful takeover bid last month, decared an unchanged imputed dividend of 6 cents per share.
Shares in Tourism Holdings, closed on Monday at $2.18, having gained 9 per cent so far this year, compared with an 0.7 per cent rise for the benchmark NZX-50 index.
The company operates fleets of rental campervans in New Zealand and Australia, tourist bus services, as well as tourism attractions such as the Waitomo glow worm caves.
Earlier this month, it said it was selling two-thirds of its interest in Johnston Coachlines, freeing up around $11 million, as well as looking at the future of other parts of its business.
The $277m takeover bid for Tourism Holdings by Australia's MFS Living and Leisure Group failed last month after some institutional shareholders resisted the offer.
Chairman Keith Smith said that since the failed MFS bid, THL had received a range of proposals relating to the acquisition, disposal or partnering of businesses within the group and THL was "examining these proposals".
Trading in the first quarter of this year is in line with expectations, with generally softer conditions, particularly in the inbound market for tourists from Asia. Bookings in the rental division were up due to discounting initiatives.
The company expects increases in operating costs, including wages and additional borrowing costs resulting from interest rate rises, to affect performance.
The net profit was slightly above earlier guidance as a result of record trading in the rentals division, a strong recovery by the Tourism Leisure Group and improvement from its Ex Group.
Operating revenue rose 8 per cent to $190m and operating surplus from continuing operations before tax rose 20 per cent to $19.4m.
Earnings before interest and tax (ebit) excluding one off items increased from $27m to $33m and earnings per share rose 16 per cent to 13.5cps.
Declining visitor numbers from Japan were offset by increases from other markets.
The high New Zealand dollar had also affected the result.
THL's gearing ratio (debt to debt-plus-equity) was 40 per cent compared with 43 per cent at June 2006. Operating cash flow increased to $51m for the year, compared with $42m for the 2006 year.
- NZPA
