Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Tourism Holdings forecasts first-half loss on merger costs

Tourism Holdings forecasts first-half loss on merger costs

Nov. 28 (BusinessDesk) - Tourism Holdings, which merged its campervan rental business with two rivals last month, forecast a first-half loss on costs of the transaction and changes to accounting treatment of its US fleet.

The net loss will be $500,000 to $1 million in the six months ended Dec. 31, down from a year-earlier profit of $4.2 million. Earnings before interest and tax would be $4.2 million to $5 million, down from $11.5 million a year earlier.

The Auckland-based company gave the forecasts at its annual meeting yesterday and released the same guidance to the NZX today.

Costs associated with the $69.5 million merger with rivals United Campervans and KEA Campers would amount to $1.3 million. A change in the accounting treatment of fleet rebates in the US from ‘point of purchase’ to ‘point of sale’ would lop a further $1.2 million off ebit.

The first-half would also compare unfavourably with the same period of 2011, when the Rugby World Cup drove up demand for the company’s campervans.

Shares of Tourism Holdings last traded at 74 cents and have climbed about 25 percent this year.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: Wheeler Downplays Scope For ‘Large’ Rates Fall

Reserve Bank governor Graeme Wheeler says some market commentators are predicting further declines in interest rates that would only make sense for an economy in recession, although some easing is likely to be needed to maintain New Zealand’s economic growth. More>>

ALSO:

Ruataniwha Dam: Consent Conditions Could Mean Reduced Intensity

Legal advice sought by the Hawke’s Bay Regional Council on the Ruataniwha Dam consent conditions has confirmed that farmers who sign up to take water from the dam could be required to reduce the intensity of their farming operation to meet the catchment’s strict nitrogen limit. More>>

Health And Safety: Bill Now Sees Rules Relaxed For Small Businesses

Health and safety law reform sparked by the Pike River coalmine disaster has been reported back from the industrial relations select committee with weakened requirements on small businesses to appoint health and safety representatives and committees. More>>

ALSO:

Bearing Fruit: Annual Fruit Exports Hit $2 Billion For First Time

The value of fruit exported rose 20 percent (up $330 million) for the June 2015 year when compared with the year ended June 2014. Both higher prices and a greater quantity of exports (up 9.0 percent) contributed to the overall rise. More>>

ALSO:

Interest Rates: NZ Dollar Jumps After RBNZ Trims OCR

The New Zealand dollar jumped more than half a US cent after Reserve Bank governor Graeme Wheeler cut the official cash rate by a quarter-point and said the currency needs to be lower, while dropping a reference to criteria that justified intervention. More>>

ALSO:

Drones: New 'World-Class' Framework For UAVs

The rules, which come into effect on 1 August, recognise the changing environment and create a world-class framework that accommodates ongoing development while still ensuring the safety of the public, property and other airspace users. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news