Tourism Holdings Limited (THL) has reported net profit after tax of $62.4 million for its annual results.
This is up 107% from its previous year’s profit. It includes a $24.3m one-off non-cash gain through its TH2 partnership with United States company Thor Industries, the world’s largest RV manufacturer.
Normalised profit for the one-off gains is $37.5m, up 24% year-on-year.
THL chief executive Grant Webster says it’s a “complex result” with the one-off gains, USA tax changes, the first full year of El Monte EV rentals and exchange rate impacts.
“The creation of TH2 would be the highlight of the year, given the potential of this business.
“We have made the decision to invest in this business in FY19 to create an even better product and to develop the market faster,” Wesbter says.
THL will invest around $15m into TH2 over the next year.
“The outlook for the FY19 result is difficult to determine, given the number of activities under way at present.
“We will provide more guidance at the annual meeting in October,” Webster says.
THL chairman Rob Campbell says the company is “embarking on a major step change”.
“We are in the midst of reallocating financial and intellectual capital to global growth. Our core values are unchanged and we respect our heritage, but we are no longer simply a New Zealand story.
“We intend making this transition while maintaining a positive income distribution policy, but the focus is on global growth, which requires reinvestment, and there will be times of consolidation to create and execute on the global platform.
“THL has substantive global opportunity in this context and this is the next chapter in our story,” Campbell says.
Final dividend of 14 cents per share took the full year dividend to 27c a share. Net debt rose $199m, up $23m.
THL operations include Kiwi Experience and the Discover Waitomo group, which includes Waitomo Glowworm Caves, Ruakuri Cave, Aranui Cave and The Legendary Black Water Rafting Co.
THL is also a joint venture partner in Action Manufacturing LP, New Zealand’s largest motorhome and specialist vehicle manufacturer.
Action Manufacturing recently announced the acquisition of refrigerated truck body and trailer manufacturer Fairfax Industries.
