Tourism Holdings, the campervan rental company, lifted first-half profit 38 per cent with strong tourist demand in New Zealand and Australia, and said it will at least deliver its forecast annual profit of $27 million.
Net profit rose to $11.3m in the six months ended December 31, 2016, with revenue rising 9 per cent to $146m, the Auckland-based company said in a statement. The company maintained annual guidance for 2017, but said it will "continue to drive the business to exceed that expectation and treat the $27m as a minimum deliverable."
Tourism Holdings has set a goal for $50m in profit by 2020, which it says is based on conservative top line growth expectations. It is forecasting gross capital expenditure of $175m in the full year, and $118m in vehicle sales, with the latter recognising an increase in sales from its US Road Bear operation, flex fleet sales and the inclusion of sales from US campervan rental and sales business El Monte Rents which it bought for $91m effective on January 1.
"We have growth and improvement plans for the existing businesses, a clear action plan for El Monte and clarity on the strategic direction of the company as we continue to build our position as a global leader in the RV industry," the company said. "There are areas for improvement and we continue to challenge ourselves, stretch ourselves and focus on continuous delivery to publicly declared goals."
Tourism Holdings said global political events like Brexit and the US presidential election had created some uncertainty, with risks of volatility in consumer confidence or exchange rates, but to date it hasn't seen a material change in bookings.
