Tourism Holdings Limited (THL) has reported net profit after tax of $29.8m for its annual results, down 52% from last year’s $62.4m.
Chairman Rob Campbell says the board is not satisfied with the 2019 financial year results.
“We remain very confident in the future of the business and our competitive position within the market. We have a strong balance sheet and our global growth strategy remains in place,” Campbell says.
Although total group revenue was down 1% on the prior year at $423m, rental revenue was up 9%.
“Strong rentals market offset by vehicle sales market,” Campbell says. “The future remains positive.”
While vehicle sales decrease, chief executive Grant Webster says the New Zealand rentals and sales business was a key highlight for 2019. It delivered an EBIT of $31.5m, representing 23% growth on the prior year.
On August 27, THL launched its journey to become a Future-Fit Business (FFB).
“THL has the responsibility to make further gains in profit in a sustainable manner. It is, therefore, imperative at this time that THL commences its journey to be an FFB,” Campbell says.
A global tourism operator, THL is Australia and New Zealand’s largest provider of RVs for rent and sale.
It has a joint venture with Togo Group, a global digital platform for the RV industry.
“We remain very committed to Togo Group. The Roadtrippers business exceeded expectations and is delivering strong subscription revenue growth,” Webster says. “The Togo RV product is behind from a development perspective, but we are confident that the opportunity remains substantial.”
THL is a joint venture partner in Action Manufacturing LP, New Zealand’s largest motorhome and specialist vehicle manufacturer.
A final dividend of 14 cents per share takes the full year dividend to 27 cents a share, on par with last year.
