Tourism Holdings, the largest campervan rental business in Australia and New Zealand, has boosted full-year guidance for a third time and hired First NZ Capital to review its capital structure.
The Auckland-based company said it expects annual profit to be between $19.5 million and $20 million in the year ending June 30, up from the $11.1 million it recorded in 2014. Tourism Holdings has lifted its annual forecast twice before, in December it expected "at least $17 million", an upgrade for its earlier November range of between $15 million and $16 million.
The company has improved earnings across its businesses by selling off excess fleet capacity and focusing on margins and is looking to leverage earnings from New Zealand's booming tourism market to fund growth in the international motorhome market. It expects profit increases to be led by growth in its local and Australian rentals businesses, as well as cost cutting.
The company's shares closed up 19c, or 11.8 per cent, yesterday at $1.80, having risen to a seven-year high of $1.90 in February.
Tourism Holdings has announced an interim dividend of 5c per share, up from 2c a year earlier.
