Tourism Holdings (THL) announced an FY15 NPAT of NZ$20.1m (guidance range NZ$19.5-20m). The result showed improved ROCE of 13.3% (the company’s target is at least 14%), which was 2.6x better than the returns of just two years ago. The improved result was achieved from a combination of solid top-line growth of 4%, fleet optimisation, improvements in manufacturing and reduced operating costs. We expect a continuation of solid tourism growth (~5%), more operating efficiencies and a flow-through from initiatives that should see THL sell more services to its customers. FY16 guidance will be provided at the annual meeting.
