“The board acknowledges that its view on valuation is materially above the last trading price for THL prior to receipt of the BGH proposal,” the company said.
“The board also accepts that there is an inherent risk in execution of THL’s growth roadmap and global economic factors which may affect THL’s future outlook.”
THL’s board said that the current proposal was “well below” a level it could engage with based on the value of currently underperforming parts of the group, even allowing for significant downsides.
It rejected the consortium’s offer, but said it remained open to engagement with the group or other potential bidders if a significantly improved offer is provided.
BGH has acquired a relevant interest in 19.99% or 44,197,503 of THL’s shares.
THL also provided an update on its 2025 full-year underlying net profit, which it said would remain in line with its announcement from July 4, with net profit expected to come in at the lower end of the analyst range of $27.0 million to $34.4m.
In its interim six-month result to December 31, 2024, the firm reported a statutory net profit after tax (npat) of $25.3m, down 36% or $13.2m on the prior corresponding period.
However, total sales grew, with revenue increasing to $458.3m in 1H25, up from $449.1m in 1H24.
Growth roadmap
With the rejection of the consortium’s offer, THL released a presentation detailing what it believes will help drive growth over the coming years.
THL chair Cathy Quinn said the recent developments within the company’s planning process, and the assessment of the offer, made it the right time to present THL’s roadmap.
“The board is unanimous in its belief that THL has now passed an inflection point in terms of performance and, over the next few years, expects rental revenue to grow significantly, debt to reduce significantly, and its near-term cost reduction plan to be successfully implemented,” Quinn said.
The presentation outlined a number of initiatives that THL has been working on, including a strategic review of the UK and Ireland division, and the acceleration of THL’s North American synergy project.
THL is taking steps to address a gap between its manufacturing costs in New Zealand and Australia, where on certain models THL manufactures for 20% less in New Zealand after allowing for shipping costs to Australia.
The company also planned to reduce capital employed and improve profitability in the Australian retail sales division through overhead and inventory reduction and a rationalisation of products and brands.
THL said the growth drivers and strategic initiatives position the company to achieve its goal of $100m in net profit after tax over the next three to four years.
However, the company has made a number of key assumptions to achieving that goal, including its fleet reaching 9000 vehicles by June 2028, and debt reduction of over $100m.
THL also outlined some key risks to achieving the goal, including tariffs, an extended economic downturn, and technology risks because of the business’ reliance on internal combustion engines.
The company intends to release its financial results and annual report for the 12 months ending June 30, 2025 on August 25.
Tom Raynel is a multimedia business journalist for the Herald, covering small business, retail and tourism.
