THL struggles awake from Australian nightmare

By SIMON HENDERY tourisim writer

After a horror year which slashed Tourism Holdings' profit to half that initially forecast, the company says the worst is over for its sluggish Australian operations.

New Zealand's largest tourism company yesterday reported a $13 million net profit for the year to the end of June down 12 per cent on last year, and less than half the $26.8 million result it was predicting this time last year.

Revenue from the company's New Zealand businesses (which include Maui and Britz campervans, Kelly Tarlton's, Waitomo Glow Worm Caves, the Helicopter Line, Mount Cook Ski Planes and the Kiwi Experience backpacker bus network) was up 11 per cent.

But Australian business (Maui, Britz and Kiwi's Australian sister company, Oz Experience) was down 49 per cent, blamed on the post-Olympic Games, post-GST economic malaise.

On both sides of the Tasman, the fall in the value of the Kiwi and Australian dollars had hiked fuel and vehicle maintenance costs. The company had also grappled with problems integrating Britz, which it bought in late 1999, and Maui.

"We are glad last year is over and a lot of things affecting Australia are behind us," managing director Dennis Pickup said.

The company's annual turnover, which for the first time included a full year of revenue from Britz, was up 9 per cent to $200.5 million.

Company chairman Keith Smith said the trading outlook in both New Zealand and Australia was positive.

"Equally we foresee major visitor growth to New Zealand from Australia, our largest single market."

Mr Smith said forward bookings, particularly in the rentals and coaching operations were up on previous years.

Two new booking systems due to be online by April next year would give the company a substantial marketing boost, Mr Pickup said.

One analyst said although yesterday's result had been "at the disappointing end" of expectations, the company has resolved most of the problems surrounding its merger of Britz and Maui, and could now expect to benefit from increasing tourist numbers on both sides of the Tasman.

The analyst predicted a bottom line result of between $15 and $18 million next year.

The company will pay a final dividend of 5c per share on October 23, taking its full-year payout to 9c, unchanged from last year.

THL shares yesterday closed down 5c, or 3.4 per cent, at $1.43.