KEY POINTS:
Tourism Holdings has increased its trading profit forecast, but says its one-off costs this year will be much more than predicted.
Chief executive Trevor Hall said moving the CI Munro caravan and motorhome manufacturing plant from Otorohanga to Hamilton had been more difficult than expected, and other group
restructuring moves had been moving more quickly than expected.
Tourism Holdings owns coaches, rents vehicles and operates attractions including Kelly Tarlton's aquarium and the Waitomo glow-worm caves.
One-off costs for the year to June would be well over the previously forecast of $1.5 million after tax, Hall said.
But a total group restructure cost of $6 million to $7 million announced at last year's annual meeting would not blow out.
"We don't see that total at risk whatsoever, but we certainly won't be spending it all this financial year," he said.
After-tax trading profit would now be between $17.5 million and $18.5 million - up from the previous prediction of $15 million to $18 million.
Tourism Holdings shares closed up 7c yesterday at $2.17.
First NZ Capital analyst Jason Familton said one-off costs tended to be disregarded in looking at earning potential.
"From that perspective it's a positive announcement from the company," he said.
Tourism Holdings boss Hall said the January to March quarter had been fantastic.
"I think we've put in a solid result in spite of the dollar ... and that reflects some improved marketing, particularly of our attractions businesses," Hall said.
Rental operations had had a good year, while Milford Sound Red Boat Cruises and Waitomo Cave attractions had been stand-out successes, Hall said.
An expected softness in May and June had been built into the forecast, but the first quarter of the next year was looking stronger.
"If Air New Zealand and the Tourism Board's marketing activity can stimulate some late visitor arrivals into the May-June period then there is a chance, but we're not seeing it in the order book yet and there's only 10 weeks to go," Hall said.
The company did not provide a full-year net profit forecast, although Hall said it would be above last year's $11 million, which had been affected by a $3.7 million writedown of Kelly Tarlton's.
Hall said he had been watching keenly as the Reserve Bank raised the official cash rate to 7.75 per cent.
Higher interest rates were putting upward pressure on important exchange rates.
"Out of today, we would see the chances of New Zealand, for example, reviving the Japanese market, remain very bleak," Hall said.
The number of visitors from the highly-valued Japanese market has been falling for 21 months, and was down 11 per cent in March to 13,179.
