Tourism Holdings Trading Results

23 February 2012

MEDIA RELEASE

TOURISM HOLDINGS LILMITED

TRADING RESULTS
SIX MONTHS ENDED 31 DECEMBER 2011

Tourism Holdings Limited (thl) has achieved significant turnaround in performance in the half-year to December 2011, with strongly increased profit, a resumption in dividend payments and positive indicators for continued growth.

The Chairman, Keith Smith, said Net Profit After Tax (NPAT) for the first half was well above that for the December 2010 half-year, due to the Rugby World Cup effect in New Zealand and the first high-season profit from the Road Bear business in the USA, acquired in December 2010.

Key points from the result included:

• Revenue increase of 27% to $108m

• NPAT of $4.2m, up from a loss of $1.3m previously

• Dividend of 2cps declared

• Road Bear performance continuing to surpass expectations –first-half EBIT of $6.1m

• New Zealand Rentals EBIT of $2.9m, up from loss of $3.5m previously, with the increase due primarily to Rugby World Cup

• Reductions of more than 10% in rental vehicle building costs in large vehicle range

Mr Smith said the Board’s expectation for full-year earnings was for EBIT of between $16m and $17m, and NPAT of between $5.0 - $6.0m.

“The Board is encouraged by the performance of the business at present, in an operating environment that continues to be very difficult.”

Mr Smith also welcomed the announcement earlier this week of a joint venture agreement with Kea Manufacturing (New Zealand) Limited over the manufacture of rental vehicles in New Zealand.

“As noted by our CEO Grant Webster in making the announcement, the joint venture provides an outstanding and rare opportunity to create a step change in cost and efficiency, and a platform for strong profit growth in that business,” Mr Smith said.

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