Campervan and tourism operator Tourism Holdings (THL) has reported another first half loss, as the pandemic continues to curtail the sector's operations.
Photo: 123RF
"The loss is reflective of another period where THL has been materially impacted by the ongoing Covid-19 pandemic," THL chair Rob Campbell said.
"Despite this, THL remains proactive in mitigating the current impact on its business and positioning itself to succeed assuming international tourism returns in a meaningful way."
He said the most significant activity in the first half was the planned merger with Australia's Apollo by way of a scheme of arrangement, which the board was recommending to shareholders," he said.
Key numbers (for the six months ended 31 December 2021 vs year earlier)
- Net loss: $4.4m vs $1.8m
- Revenue: $174.9m vs $205.8m
- Expenses: $69.2m vs $75.7m
Apollo shareholders recently approved the deal valued at about $143m, which was still subject to approval by Tourism Holdings shareholders.
THL says about $2.1m of one-time transaction costs was included in the first half result.
"The proposed merger is expected to provide both sets of shareholders with the benefits of the material cost synergies that aren't available to either party without the merger. In doing so, it positions us to be a more resilient company that can regrow with greater efficiency as fleet is rebuilt in line with tourism activity."
Chief executive Grant Webster said international travellers were already visiting the United States and beginning to book for Australia.
"The fact that New Zealand has no certainty on the removal of self isolation requirements is frustrating but it won't stop THL investing globally for growth," Webster said.
He said vehicle sales margins continued to be higher than historical norms, but were expected to normalise over time.
"Additionally, the strong vehicle sales environment is a common trait across all of our jurisdictions and our teams are focused on maximising margins whilst managing sales volumes to position the businesses with the fleet required for peak season rental needs."
No dividend was declared for the half and it is expected that this will remain the same for the full year.
The company said it was tracking to make another full year loss, but smaller than the previous year's excluding another $4m of transaction costs associated with the Apollo deal.