Tourism Holdings has more than doubled its first-half net profit in its latest results.
The New Zealand company, the world’s largest recreational vehicle (RV) rental business, posted a net profit of $22.8 million in the six months ending December 31.
It’s up 102% from the previous year’s result of $11.3m with total revenue up 43% to $209m.
The results were boosted by the strong performance of its recently acquired El Monte RV business, as well as a non-recurring tax benefit and a lower tax expense due to the new USA tax legislation introduced in December 2017.
The net debt of $178m is below the forecast of $200m.
Chief executive Grant Webster says the company increased its debt to purchase El Monte RV and reduced debt “further than originally planned”.
“The outlook remains positive and we will continue to grow in a sensible but global manner,” he says.
Chairman Rob Campbell says “it is pleasing to see most of the core businesses continue to improve, as well as seeing the El Monte RV business outperform our expectations for the calendar year”.
The company also announced last week a joint partnership with Thor Industries, the world’s largest RV manufacturer.
“We remain focused, aware of our opportunities to improve what we have today, whilst creating another exciting future,” Campbell says.
