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Tourism Holdings half-year revenue down 8%

Thursday 24th February 2011

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Tourism Holdings reported a half year loss after tax of $1.3 million, compared to a profit of $1.4 million a year earlier, as revenue fell 8% to $84.9 million and costs were reduced 5%.

Net debt increased to $90.5 million from $36.5 million at June 30, as a result of the acquisition of US business Road Bear RV Rentals and Sales, and increased fleet in Australia.

The company forecast a full year after tax loss of $4 million, including $1 million of costs relating to the Road Bear acquisition.

The year end debt position was expected to be around $112 million, including $37 million related to the Road Bear acquisition and their increased fleet build which was at its peak in June.

The company operates holiday rental vehicle businesses in this country and Australia, along with bus operator Kiwi Experience, activities at Waitomo Glowworm Caves, and motorhome and caravan manufacturer Ci Munro.

Yesterday Tourism Holdings said it had resolved a banking covenants breach issue with its banks, after previously forecasting it would not be in compliance with covenants for the March quarter following a sudden drop in forward bookings during the key January booking month.

Today the company said weekly booking periods in January and February were down up to 35% on the previous period, as the perception of Australia and this country as travel destinations was affected by coverage of natural disasters in Australia.

All the company's Christchurch crew were safe following the Tuesday earthquake, with facilities in the city showing no damage.

 

NZPA



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