Campervan company suffers loss
Tourism Holdings Ltd (THL) has announced a net loss after tax of $14.5 million for the year ending June 30, 2021, as it battles with the effects of the Covid-19 pandemic on travel.
The figure was a drop of $34.3m, or 153 per cent, from the previous year’s profit of $27.4m.
There were some positives from its US and Australian markets, but the company says New Zealand rentals and tourism continue to be challenging and it predicts another net loss for the 2022 financial year.
Chairman Rob Campbell, pictured, says THL is not pleased with this year’s loss but considers the company has managed its finances well within the context of global tourism.
“We have continued to adapt, manage the balance sheet and retain opportunities for the future,” he explains.
“However, we recognise the uncertainty regarding the outlook for international tourism, particularly for New Zealand and Australia. The United States appears to be close to reopening and the current increasing vaccination rates in New Zealand and Australia are clearly positive.
“In the interim, THL remains a company with a carefully managed balance sheet that is strong for our industry segment and has a company value that is supported by a base of tangible, realisable and in demand assets that are being sold well in excess of book values.”
Total revenue was $359m at the end of June, down 10 per cent from $401m the year before, while net debt hit $49m, a drop of 62 per cent from $128m over the same period. The company has refinanced debt facilities of up to $250m through to 2024.
Record vehicle sales revenue and volumes, with growth in average sales margin per vehicle in all countries, had taken the size of its fleet down to 4,242 vehicles. This was 27 per cent below the 5,815 units it had at the end of June 2020.
At the same time sales of goods revenues totalled $229m for a 60 per cent increase from $143m.
THL reports it has lost 90 per cent of its normal rentals business in New Zealand and continues to assess how the existing overheads and network can be leveraged to bring in new revenue streams.
Revenue from vehicle sales here hit $100.9m at the end the June 2021, more than double the $45.9m achieved in FY2020, as the company reduced its New Zealand fleet by nearly 40 percent. It now has 1,547 vehicles in New Zealand compared with 2,532 a year earlier.
The company’s Australian rentals business delivered positive earnings before interest and taxes despite Covid-19 lockdowns, while in the US margins on vehicle sales were up 73 per cent on the prior corresponding period.
Grant Webster, chief executive officer, says THL is “moving forward, taking the opportunities that exist for our business in today’s environment whilst continuing to challenge and adapt as required for long-term success”.
