28 Nov 2012

Tourism Holdings says outlook is positive

7:30 am on 28 November 2012

Tourism Holdings warns trading conditions remain tough but says its outlook for the year is positive following the merger of its New Zealand business.

Earlier this year, the listed caravan and tourism operator merged with United Campervans and Kea Campers.

The firm is forecasting its gross earnings to more than half to between $4.2 and $5 million for the six months to December, due to the cost of the merger, while it also enjoyed a boost last year from the Rugby World Cup.

But chief executive Grant Webster says the merger will mean it can rationalise its fleet, properties and reduce costs in New Zealand.

But he says the company needs to do more to Australia, including cutting its fleet.

Mr Webster says the company is forecasting profit after tax of about $6.6 million for the full year.