At its Annual Meeting Tourism Holdings (THL) provided guidance for FY16 of NZ$37m EBIT and NZ$22m NPAT. This is an expected annual increase in NPAT of 10%. THL reported that the tourism markets in its key markets of New Zealand and Australia remain strong and that ongoing focus on cost reduction, improved efficiency and innovative ways to reduce capital costs are expected to drive ROCE. The company expects to achieve its long-term average ROCE of 14% in FY16. Our FY16 EBIT forecasts EBIT are unchanged. There have been some minor changes to interest and tax to reduce our FY16 NPAT forecasts from NZ$23m to NZ$22.4m.
