28 Aug 2012

Tourist operations pruned

7:04 am on 28 August 2012

Tourism Holdings is continuing to cut its domestic operations as demand remains lacklustre.

In February 2012 , THL forecast a full year profit of between $5 - $6 million.

But the caravan and tourism operator made only $4.3 million in the year to June, compared with a loss of more than $27 million in the previous year when it wrote-down book values for goodwill.

Total revenue across its businesses in New Zealand, Australian and the United States rose 8% to $200 million.

Chief executive Grant Webster says that while the US economy appears to be picking up, demand on this side of the world remains sluggish.

The company will pay a dividend of two cents per share.

Mr Webster said the company will make forecasts about the next few months at its annual general meeting in November.