Tourism Holdings signs 5-year contract to supply ambulances to St. John
By Jason Krupp
Sept. 2 (BusinessDesk) - Tourism Holdings, the campervan rental company hurt by the Christchurch earthquakes and Queensland flooding earlier this year, said it's branching out of its traditional markets further, signing a contract to supply St. John with ambulances.
The company’s Ci Munro subsidiary will supply the emergency services provider with customised vehicles for the next five years, according to a statement filed with the NZX today.
The deal is expected to see the first tranche of 50 new vehicles rolled out over the next 12 months, with an initial estimated value of $6.8 million. Shares of Tourism Holdings rose about 5% to 64 cents and have declined 21% this year.
Ci Munro’s specialist transport engineering arm, Action Motor Bodies, will work with St. John to develop the ambulances, which are based on a 318 Mercedes cab chassis. It is the first time the emergency services provider has tendered its ambulance purchasing on a national basis.
The deal could prove a shot in the arm for the THL, which last month reported a full year net loss of $27.3 million in the 12 months ended June 30, down from a profit of $4.6 million a year earlier.
The loss included a $26 million write down the goodwill on its rentals business in Australia and New Zealand, where the flooding in Queensland, earthquakes Christchurch, and the strength of the kiwi dollar negatively impact on overseas visitor numbers.
The tourism unit's pretax earnings fell 36% to $3.9 million in the period.