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Tourism Holdings Limited (thl) Financial Results for The Year To 30 June 2017

August 23, 2017 Financial No Comments Email Email

thl today releases its results for the full year ending 30 June 2017. The result is a record result for the Company.
thl Chairman, Mr Rob Campbell, said, “in 2015 we set a target for the business to reach $30M NPAT in FY19. This goal assisted the business to direct energy in the areas that would really make a difference. It is pleasing for the business and shareholders to deliver to this target two years earlier than originally planned.”

“In December 2016, with the announcement of the El Monte acquisition and associated transactions, we announced a new target for the business – $50M NPAT in FY20. Already, within the six months since that announcement, we have, again, seen the business galvanise around that target.”

The result was greater than expected for the second six months, due mainly to strong performance from Rentals NZ, but also included higher than expected margins on the sale of the older El Monte fleet, which had been classified as inventory fleet for sale. All business units showed progress during the year in EBIT growth and Return on Funds Employed in operating country currency.

The New Zealand rentals and sales business had an excellent year, with some benefit from the Lions tour, a strong shoulder season and higher yields in a high growth market. EBIT of $24M was up over 50% on the prior year.

Dividends have continued to rise, with a year-end dividend of 11cps taking the total dividend to 21cps for the full year. With higher New Zealand-based earnings, the year-end dividend will be fully imputed. It is expected that future dividends will return to be partially imputed, as overseas earnings grow as a proportion of the total business.

CEO, Mr Grant Webster, said “there are a number of achievements within the result which should be celebrated and, yet, we can clearly see more opportunities for improvement as we head towards the FY20 goal of $50M NPAT.”

“The year’s review should be dominated by the announcements we made in December 2016. The acquisition of El Monte to take us to a clear number two position in the USA, the investment in Roadtrippers – a leading travel and technology company in the USA – and the pilot of Mighway all reset the way we think about North America.”

“The outlook for the FY18 result will be detailed at the Annual Meeting in October, however we are providing an initial forecast range of between $36M and $39M, which includes the first full year of El Monte.”

Mr Webster noted “we operate in an industry that’s in a growth phase, we deliver compelling experiences and we are a business that has improved, is still improving and is prepared to take some careful risks for future substantial growth.”

The company has also today released its first sustainability report. The report is available online and outlines the current performance and future focus for the company from a sustainability perspective. Mr Webster said, “we do consider ourselves a responsible tourism operator. We are often leading the way within our industry segment and we will continue to do so. We have goals we want to achieve and we want to be confident we are making a positive contribution to the broader environment in which we operate.”

The shareholder review, financial statements and a detailed investor presentation are all available on the thl website.

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