Tourism Holdings upgrades guidance again

Tourism Holdings upgrades guidance again

The largest campervan rental business in Australia and New Zealand, Tourism Holdings, has boosted full-year guidance for a third time.

It has also hired First NZ Capital to review its capital structure.

The Auckland-based company said it expects annual profit to be between $NZ19.5 million and $NZ20 million ($A18.61 million-$A19.09 million) in the year ending June 30, from the $NZ11.1 million it recorded in 2014.

Tourism Holdings has lifted its annual forecast twice before. In December, it expected at “at least $NZ17 million”, an upgrade for its earlier November range of between $NZ15 million and $NZ16 million.

The company has improved earnings across its businesses by selling off excess fleet capacity and focusing on margins.

The company is looking to leverage earnings from New Zealand’s booming tourism market to fund growth in the international motorhome market.

It expects profit increases to be led by growth in its local and Australian rentals businesses, as well as cost cutting.

The company has also hired First NZ Capital to review its capital structure as it looks for a way to “maximise shareholder value”.

The shares last traded at $NZ1.61 and have fallen 11 per cent since the start of 2015, having risen to a seven-year high of $NZ1.90 in February.

Tourism Holdings has announced an interim dividend of NZ5 cents per share, up from NZ2 cents a year earlier.

In 2007, shareholders rejected a takeover bid by Australian company MFS Living and Leisure when the shares were at $NZ2.80.

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