Tourism Holdings lifts annual profit 21%

Tourism Holdings [NZX: THL], the campervan rental company, lifted annual profit 21% as revenue increased and the company continues to target net profit of $30 million by 2018.

Net profit rose to $24.4 million, or 21.4c per share, in the 12 months ended June 30, from $20.1 million, or 17.9c, a year earlier, the Auckland-based company said in a statement. In April, Tourism Holdings said it would "meet and likely to some extent exceed" its earlier guidance for the year of $24 million. Revenue rose 18% to $279 million.

The company didn't give guidance for 2017 but reiterated its goal of $30 million net profit in the 2018 year, a goal it brought forward in April having first set it as a goal for 2019.

"We promised revenue growth and are achieving it without any loss in focus on returns on funds," chairman Rob Campbell said. "The year's result is good but far from faultless, providing more upside in the coming years."

"The launch of new initiatives is pleasing but means nothing until scalable models are proven and returns are achieved," Mr Campbell said. "The future of the company is a company that is structured to deliver positive returns from a core business with exciting growth prospects in the global tourism industry through a smart balance of capital management and digital development."

The company has previously said it anticipates rental growth and increased yield in 2017, particularly in New Zealand. It expects the British and Irish Lions rugby tour in late June and July that year to have a positive impact on results in the period, though will incur some increased costs to prepare its fleet.

It expects to provide guidance for the current financial year at the annual meeting in October.

The board declared a 10c per share final dividend, 50% imputed, with an October 7 record date, payable on October 14. That takes total dividends for the year to 19c per share, up from 15c last year.

The shares last traded at $3.04, and have risen 38.8% this year. The stock is rated buy by one analyst recommendation compiled by Reuters, with a median target price of $3.25.

(BusinessDesk)

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