KEY POINTS:
Takeover target Tourism Holdings has warned shareholders of a weaker start to the new financial year as the deadline for the offer looms.
The NZX-listed company said yesterday that the June year just ended would be towards the top end of a profit range of between $17.5 million and $18.5 million, before one-off costs of about $6.5 million after tax.
The independent directors are recommending shareholders accept a full takeover bid by Australian firm MFS Living and Leisure at $2.80 a share, which closes on July 21.
Shares closed up 4c yesterday at $2.54 each.
Chief executive Trevor Hall said the trading outlook for the current first half was for softer conditions.
A satisfactory first-quarter order book in the rentals division had been price-led and the company was getting relatively nervous about the exchange rate.
"It's pushing New Zealand [domestic] visitors overseas and we are getting tagged as an expensive destination," Hall said.
The company also highlighted a soft inbound Japanese market, domestic spending affected by high interest rates and the impact of this year's Rugby World Cup in France.
Returning New Zealand and Australian fans were squeezing down the seat capacity, Hall said.
However, despite the warnings, the company was not overly concerned and did not say whether it expected the current half-year to be up or down.
"We can't define that because the market could come late," Hall said.
First NZ Capital analyst Jason Familton said it was not possible to read too much into the update because the first three months of the year wer generally the quietest.
The one-of costs included the transfer of the CI Munro manufacturing facilities from Otorohanga to Hamilton and preparing for a proposed sale of leisure assets.
