The company is looking to use earnings from New Zealand's booming tourism market to fund growth in the international motorhome market. Photo / Thinkstock
The company is looking to use earnings from New Zealand's booming tourism market to fund growth in the international motorhome market. Photo / Thinkstock
Tourism Holdings, the biggest campervan rental company in Australia and New Zealand, said annual profit might rise as much as 44 per cent on increased sales and lower costs. The shares hit a six-year high.
Profit was expected to be between $15 million and $16 million for the year endedJune 30, 2015, up from $11.1 million this year, and up from a previous forecast of $15 million, chairman Rob Campbell told shareholders at the annual meeting in Auckland. The profit growth would follow a 192 per cent rise in earnings in the 12 months ended June 30.
The company flagged a potential 6c-a-share dividend at the half-year, up from 5c a share a year earlier, and will confirm in February. It expects profit to rise 60 per cent to $4 million in the six months ending December 31 and plans to reduce debt by 12 per cent to $85 million.
Tourism Holdings has improved earnings across its business by selling excess fleet capacity and lifting its profit margins. The company is looking to use earnings from New Zealand's booming tourism market to fund growth in the international motorhome market.
The company said it expected profit increases in the coming year to be led by growth in its local and Australian rentals businesses, as well as cost cutting.
"Tourism Holdings is only part of the way through a major change in the nature of its business," Campbell said. "The potential for growth in the scope, scale, earnings and shareholder value is exciting."
Shares closed up 4.8 per cent yesterday at $1.75 and have gained 78 per cent since the start of the year.
