The company affirmed its December guidance of annual profit to be at least $17 million. That's higher than its November range of between $15 million and $16 million, which was itself an upgrade, and would be at least 53 per cent higher than the $11.1 million it recorded in 2014.
Tourism Holdings' New Zealand rental business narrowed its earnings before interest and tax (ebit) loss to $1.1 million, from a loss of $2 million a year earlier, as flat rental income was offset by lower depreciation costs from a reduced fleet. Its tourism business, which includes Waitomo caves tours and Kiwi Experience buses increased ebit 48 per cent to $2.4 million, as New Zealand tourist numbers rose to a record in 2014.
Australian rentals lifted ebit 81 per cent to $4.7 million, as a smaller fleet meant lower operating costs. US rentals ebit slipped 3 per cent to $6.1 million, but was up 5 per cent on a US dollar basis. Lower fleet numbers during the peak season after strong vehicle sales in the second half of the 2014 financial year weighed on rental income but was largely recovered in the shoulder season, Tourism Holdings said.
The company's joint venture with Alpine Bird Manufacturing, RV Manufacturing Group, lifted ebit 55 per cent to $1.1 million, as new procurement and design adaptations drove down costs.
As at December 31 the company had $6.3 million in cash and cash equivalents on hand, down from $11.3 million a year earlier, while its assets were reduced to $301 million from $313 million a year earlier. It had $91.1 million in borrowings and loans at balance date, down from $108.3 million a year earlier.
The company said it expects its capital expenditure to be on the higher side of expectations, with full year net capex to be between $25 million and $30 million, while net debt will be between $80 million and $85 million.
Shares in the company closed down 2c yesterday at $1.85.
Tourism Holdings
• $5.6 million profit, up 128.7%
• $109.7 million sales, down 2.4%.
• 7c interim dividend, up from 5c.