THL confident despite profit downgrade

By Phil Boeyen, ShareChat Business News Editor

Monday 13th November 2000

Tourism Holdings has dropped its forecast after-tax profit for the year by around $5 million dollars to $21 million but says it remains confident of a "healthy financial future".

At its AGM today the company announced it had been hit by a number of negative factors in the first quarter of the new financial year and trading was well short of budget.

Chairman Graham Sinclair says these include fallout from the political and coup events in Fiji, a disappointing ski season, fuel price rises and a poor performance in Australia.

"The position is that our results to date and our performance indicators are telling us that unless we can recapture some of the revenue shortages experienced thus far in the financial year, our Australian businesses will be well short of plan."

THL says its Helicopter Line business is another area of concern, having experienced a bad season to date with weather, and some unexpected special costs with aviation plant.

However Mr Sinclair reminded shareholders at the meeting that the company will still make a substantial profit for the present year, up around 42% on last year's result.

"Your directors have a strong belief in the future of tourism in New Zealand and Australia, and are confident that the company is well positioned for a very healthy financial future."

Mr Sinclair was has retired as THL chairman but will stay on as a director of the company. Deputy chairman Keith Smith replaces him.

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