Tourism Holdings may beat annual profit guidance
By Tina Morrison
July 2 (BusinessDesk) - Tourism Holdings, the largest holiday vehicle rental business in New Zealand and Australia, may beat its annual profit guidance.
The Auckland-based company expects to "meet or exceed" its February forecast for profit to rise to $10.5 million in the year ended June 30, from $3.8 million a year earlier, it said in a statement citing unaudited figures. Its earnings will be released Aug. 26, when it expects to detail forecasts for the coming financial year, it said.
The company expects to achieve further growth in its 2015 financial year and deliver on its key objective of achieving an appropriate rate of return on funds employed in the Australian and New Zealand rentals businesses, it said.
Tourism Holdings has been lowering its debt since it bought rivals United Campervans and KEA Campers to reduce overall fleet numbers and boost profitability in 2012. Net debt in the year just ended is expected to fall to $90 million, lower than its February forecast of $95 million and down from $97 million in December, the company said.
The company's shares last traded at $1.12 and have gained 19 percent so far this year.