KEY POINTS:
Tourism Holdings Ltd today forecast annual profit at the upper end of previous guidance, but warned the first half of this year would be softer.
Net profit after tax for the year ended June 30 would be at the top of the $17.5 million to $18.5 million range announced in April. One-off costs were estimated at $6.5m, up from earlier guidance of $1.5m after tax.
Net profit last year, before a $3.7m writedown, was $14.7m.
About $2m of costs related to the takeover bid by MFS Living and Leisure, THL said. A further $2m was incurred in the transfer of caravan maker CI Munro manufacturing to Hamilton from Otorohanga, and the rest was due to restructuring costs.
"The trading outlook for the first half of the current year is for softer conditions than prevailed in the same period last year," chief executive Trevor Hall said.
"The rentals division has satisfactory orders for the first three months, but these have been significantly price-led in competitive market conditions.
"The board remains concerned about the likely impact of the further appreciation in the New Zealand dollar, a soft inbound market for tourists from Japan, high interest rates affecting domestic discretionary spending and some concerns around the World Cup and its impact on October 2007 trading," Mr Hall said.
The board decided not to pay a special dividend of up to 30c per share from available imputation credits, despite the forfeit of the credits if the takeover failed, because some shareholders would be disadvantaged by a special dividend.
MFS Living and Leisure is offering $2.80 a share. The offer closes on July 21, and is conditional of 90 per cent acceptances. MFS currently has 21.5 per cent.
THL shares were steady at $2.50.
- NZPA
