This could be on the up for some time.
Quote:
Originally Posted by
belgarion
GC, you'd be pretty pleased with the bullish outlook?
I was at the meeting, whats gives me confidence is that my body language
of the recently new chairman Rob Campbell is such that the outlook is believable.
Looks like THL might have turned around for the better.
I think this company is not the same with the new Chairman.
Quote:
Originally Posted by
benjitara
I find the P/EPS to be disconcerting with this stock. They may have market share in new Zealand and growth opp overseas but to me a P/EPS of 30 or so indicates a much more robust outlook than they could possibly be confident in achieving.
“
We will deliver a proper commercial return of funds employed and we will do so no later than the end of
the 2015 financial year,” he said. Rob Campbell in Media Release today.
So proper commercial return of funds employed one would think has to be a minimum of 8.4%.
Total assets as per 2013 annual report 330mil.
So it seems to me that potentially THL is expected to make 27mil plus profit.
Market cap after today SP rise to $1.00 is about $110mil.
So if my fate is correct in the media release 2015 forward looking P/E 110mil/27mil just over 4.
Yes this would be a big improvement for THL but remember THL US is already returning 8.4% on assets and the Chinese are expecting to extent the peak season for NZ tourist companies as their holiday season does not exactly overlap other markets.
Chairman Rob Campbell buying
https://www.nzx.com/companies/THL/announcements/249407
Rob Campbell sounded confident at the AGM that he can improve THL profits and now he is backing this up with some THL share purchases in march and April.
What is an appropriate rate of return on funds employed?
THL - Market Update
8:35am, 2 Jul 2014 | FORECAST
2 July 2014
NZX Market Release
Tourism Holdings Limited (THL)
Market Update
With the financial year at an end, thl can advise that based on a review of the non-audited FY14 financial results, thl’s Net Profit After Tax will meet or exceed the forecast which was released to the market in February 2014.
Net Debt will be below $90M compared with the $95M forecast in February.
Early forecasts are being completed for the FY15 year and will be discussed in more detail with the Annual Results announcement on August 26th, 2014.
At this point in time we are confident of achieving further growth in FY15 and delivering the key objectives set at the 2013 Annual Meeting. Those objectives included achieving an appropriate rate of return on funds employed in the Australian and New Zealand rentals businesses.
No further indications or details can be provided at this point in time until the full accounts are completed and audited.
Authorised by:
Rob Campbell
Chairman
Tourism Holdings Limited
In round numbers the NZ and AUS rentals had a total assets of 240mil at 31-12-13. Would it be to optimistic to expect a 10% return on this say 24mil. Take off this 7mil interest cost and there would be 17mil profit left on just the NZ and AUS rentals alone. I know this is a very simplistic way of looking at the financials but it illustrate that things are on the up as far as I see them.
What do others think?
Yes cyclical not unlike AIR
Quote:
Originally Posted by
Roger
Gents, we all know this has historically been a very cyclical company so while Rob Campbell is inferring a stronger 2015, so is AIR.
Might be a bit early to be calling for consistent growth, does a cyclical company, (leopard), really change its spots ?
I think Rob Campbell is suggesting quite a sizeable upturn, how sizeable I am trying to work out, but to me it seems that it is worth the time to look into.