Tourism Holdings Limited (THL) has posted a net loss after tax of $14.3 million for its full-year result, down $34.3m on the year prior.
Operating revenue was down 10% to $359.2m for the 12 months to June 30 with COVID-19 impacting international tourism.
However, the company reported record vehicle sales revenue and volumes, with growth in average sales margin per vehicle across its New Zealand, Australia and USA operations.
The New Zealand campervan rentals and tourism industry suffered ongoing COVID-19 challenges with a loss of about 90% of normal business. Its local operations posted $132m in revenue across vehicle rental and sales.
The company’s USA operations had a strong performance, posting $147.1m revenue across vehicle rental and sales. THL says the business benefited with fewer travel restrictions there.
Australia operations posted $65.5m revenue across rentals and vehicle sales. THL says business performed well there during open domestic travel but was impacted by multiple lockdowns.
The company says it continues to focus on several domestic growth opportunities to balance its reliance on international tourism and build greater resilience.
This includes growth in Action Manufacturing’s special commercial vehicle design and manufacturing business, and the “possibility of inorganic growth opportunities” that complement Action’s core commercial elements.
It’s also looking to establish an RV Super Centre as a one-stop shop for all things RV-related in New Zealand, with growth in retail sales, servicing and repair work.
Expanding the vehicle sales businesses by introducing a greater range of new ‘direct-to-yard’ vehicles and updating fleet designs to reflect sales customers’ needs.
Alternative RV rental revenue such as event accommodation and emergency response needs, it also being considered.
Chief executive Grant Webster says the company “capitalised on the relative category growth for the RV experience” and improved vehicle sales expertise to deliver a record sales year.
“A key priority for the year has been keeping customers and crew safe from COVID-19. We are very pleased to have had no traceable cases linked to our operation from any of our 40 locations globally.
“Despite the challenging times and uncertainty, our crew have adapted and delivered.
“Regardless of the demand environment today our belief in becoming Future-Fit remains, and is directing us on what we believe is the right path, ensuring we will be sustainable in all aspects of the business as we reset and prepare for the years ahead,” he says.
