29 Aug 2013

Drop in profit reported by THL

11:59 am on 29 August 2013

Tourism Holdings has reported a drop in annual profit but said it had turned around a loss at the half-year as forecast, largely due to the merger of its rental business with rival operators.

Net profit fell 16% to $3.8 million for the 12 months to the end of June, compared with last year.

During the last financial year Tourism Holdings merged with United Campervans and KEA Campers, which it said has been a success.

Operating profit fell 11% to $14.6 million, but the group said the two years are not comparable, due to the cost of the merger and an unflattering comparision with 2011's Rugby World Cup.

The company will pay a final dividend of 2 cents per share.

Rob Campbell was appointed as the new chairman to replace Keith Smith, who will step down from the board at the company's annual meeting later this year.

Offshore earnings

In Australia, AAP reports revenue fell 5% to $NZ86.8 million and earnings dropped 68% to $NZ1.3 million as tight economic conditions in Europe and a higher Australian dollar made the destination unattractive for tourists.

"Australia will remain tough in the coming year," the company said. "We expect revenue to fall, but operating earnings should improve."

In the United States, which is the company's largest campervan market, earnings increased 14% to $NZ6.5 million.