27 Feb 2014

Tourism Holdings increases forecast

10:58 am on 27 February 2014

Campervan rental company Tourism Holdings is increasing its end-of-year profit forecast to $10.5 million from $3.8 million.

That's after the company announced on Wednesday its first-half profit to December reached $2.5 million, up from a loss of $500,000 a year before.

Revenue from motorhome rentals in Australia fell 18 percent but revenue from rentals in New Zealand and America, and from tourism businesses, all increased.

The company will pay a first-half dividend of 5 cents per share, up from 2 cents last year.

Tourism Holdings chief executive Grant Webster says the new projected profit is a 175 percent increase.

He says Tourism Holdings is expecting to make a profit in Australia for the full year but it's still a tough operating model there although the firm is confident that a stringent review of costs and operations will make a difference there.

Mr Webster says it's a turnaround and the company has a lot of new board members who are committed to ensure it's sustained.