Tourism Holdings’ Profits Benefit From Merger
Tourism Holdings has reported a net profit of $3.8 million, following the successful 2012 merger of its New Zealand rental business with United Campervans and KEA Campers. Revenue from continuing operations in the 12 months to June 30 grew 12% to $225 million from $200 million in the prior year.
According to a report by Stuff.co.nz, the RV rental and tourism operator last year posted a net profit of $4.3 million for the 12 months to June 2012.
THL also announced Rob Campbell had been elected as chairman, effective Aug. 29, 2013. Campbell replaces Keith Smith, who signaled at last year’s annual meeting he would step down once integration of New Zealand rentals, KEA and United businesses was complete. Smith will retire from the board at the conclusion of this year’s annual meeting in November.
Smith said the merger with United and KEA had delivered on its objectives to position THL for the challenging market conditions it faced.
“It has linked our highly competitive international sales and service infrastructure with high-quality brands servicing complementary market segments, and is allowing the orderly reduction of the New Zealand motorhome fleet,” he said. “THL is a much stronger company as a result. The rationalization of the New Zealand rental fleet is on track. We have consolidated the three businesses’ back-office operations and service centres, and the capital invested in the business.”
Campbell said he was optimistic about the year ahead and looking forward to leading the company in its next phase of development.
“Motorhome bookings for the New Zealand summer season are shaping up well,” he said. “Our U.S. operation, now in the midst of its high season, continues to deliver excellent results and the New Zealand tourism operations including Kiwi Experience and Waitomo Caves are performing steadily. Our Australian business faces tough trading conditions, but restructuring programs are positioning it for the future.”
THL declared a final dividend of 2 cents a share taking total dividends for the year to 4 cents a share, the same as the previous financial year.
THL chief executive Grant Webster said strategic decisions made over the past two and half years to enter the United States market plus the New Zealand rentals merger were delivering the expected results.