Tourism Holdings Financial Results to 30 June 2014
26 August 2014
MEDIA | NZX RELEASE
TOURISM HOLDINGS LIMITED (thl)
FINANCIAL RESULTS FOR THE YEAR TO 30 JUNE 2014
thl NPAT up 192% with more growth forecast
• Net Profit After Tax (NPAT) of $11.1 million up 192% on prior year
• Operating Profit Before Financing Costs and Tax (1) (EBIT) of $22.8 million up 57% on prior year
• Net Debt reduced to $79 million (2) from $120 million
• Final dividend of 6 cents per share (cps) declared, making total for year of 11 cps up from 4 cps in prior year
• All operating businesses improved profitability in FY14
• Forecast FY15 NPAT of at least $15 million, or at least 35% growth over FY14
New Zealand’s leading tourism group Tourism Holdings Limited (thl) (NZX:THL) announces a successful turnaround in the company’s profitability and outlook with a 192% increase in NPAT, a further 35% increase in forecast NPAT for FY15 and a gross annual dividend of 11 cents in calendar 2014.
Chairman, Mr Rob Campbell said, “The thl team has achieved the commitments we made to shareholders a year ago. We cannot yet claim to be a successful company, but we will be. We have higher expectations for the company, expectations for growth and the development of a business model that is more robust, less capital intensive and focused on world leading customer experiences.
We have confidence in the coming year and have set a forecast of at least $15 million NPAT for FY15. This represents a further increase of 35% on the FY14 result released today. Shareholders should expect more from us in the future. That is the expectation we have of ourselves.”
The final dividend of 6 cps will be partially imputed (up to 50%). The company has been in a tax loss position in New Zealand and will resume a cash tax paying position in New Zealand in FY15.
Chief Executive Officer, Mr Grant Webster said, “From my perspective I have been encouraged that the turnaround in profitability has been driven by both revenue growth in most business units, and cost reductions. We are focussed on both.
Every business unit within thl has improved profitability. Importantly, this is not just a market led recovery. We have had clear plans for improvement and business model changes that we see the benefits of within the FY14 results.
There is still lots of work to do in this business and we can now aggressively focus on growth strategies as well
(1) EBIT excludes joint venture earnings
(2) In addition to Net Debt in FY14, there is a $6.0 million commitment against a Letter of Credit facility in favour of RVMG LP for Work in Progress fleet purchases which wasn’t in place in the prior corresponding period