The first six months of the financial year are proving to be profitable for Tourism Holdings Limited, which reported a 48 percent increase in profits.
During the first half of the 2014/15 year, the company saw its operating profit before financing costs and tax rise to $10.6 million – up from $3.4 million the prior corresponding period.
Net profit after tax doubled from $2.5 million to $5.6 million and the company’s net debt decreased to $85 million down $12 million year-on-year.
Chairman Rob Campbell said business is growing in a ‘smart manner’ mainly due to the company’s initiative of employing new opportunities.
“We are operating in a positive tourism environment and have addressed the core operating issues within the business.”
Rob Campbell, THL Chairman
“It is pleasing to see the company on track for the increased year end forecast we released in December.”
He expects further earnings improvements based on the current operations and says the company is in line to achieve more than $17 million in new profit after tax for the full financial year.
Meanwhile, thl’s demand continues to increase over last year.
In December, demand for motorhomes in Australia and New Zealand were firm, while numbers for the tourism group jumped 20 percent.
January this year was in line with last year and February on track to deliver double digit growth.
The company’s Australian rentals were up $2.1 million or 81 percent on the prior year to reach NZ$4.7 million.
The main contributor to this growth was from lower depreciation in line with reduced fleet, repairs and relocation costs.
“These benefits have now created a much stronger operating capacity within the business.”
In the US profits for the Road Bear RV business were marginally down to $6.1 million from the $6.3 million achieved last year.
thl attributed this to lower fleet numbers during the peak season due to strong vehicle sales during the second half of the 2013/14 financial year.