Tourism Holdings shares spike on new profit guidance

Tourism Holdings owns the Maui campervan brand. Photo / Supplied

Shares in listed tourism company Tourism Holdings jumped more than 10 per cent after the company increased its underlying profit guidance for the year to June 30.

Tourism Holdings, which is at the sharp end of Covid disruption, revised up its expected profit from a range of between $17.5 million to $19.5m, to approximately $20m.

The "underlying" result excludes one-off items such as a $9.3 million gain from its partial exit from the Togo Group, a one-off tax benefit of $1.1m in the US and the write-off of $3.1 million of goodwill attributed to Kiwi Experience.

Statutory net profit is expected to be approximately $27m.

The company, which is due to release its result on Friday, also updated the market on its net debt position saying as at 30 June 2020 it was approximately $128 million.

That compares to earlier expectations of net debt of approximately $133 million, as noted in the company's market release of 31 July 2020.

"The variance was primarily attributable to the continued outperformance of vehicle sales, particularly in the United States," Tourism Holdings said in a statement.

Tourism Holdings has been impacted by closed borders and evaporating demand from international tourists for campervan hires.

It has started selling off vehicles to bring in cash and expected to raise more than $70 million from the sales.

The shares recently traded at $2.19, up nearly 13 per cent or 25c on Friday's close. The stock has recovered from a low of 55c in March, but is still down 46 per cent over the past 52 weeks.