Tourism Holdings Ltd has booked a turnaround profit - largely on the back of Rugby World Cup rentals - replacing last year's $1.3 million loss with a $4.2 million after-tax profit for the six months trading to December.
The turnaround in Tourism Holdings' fortunes is seen as well overdue by analysts as the company had been beset by poor trading in recent years.
Shares in Tourism Holdings rose 3% to 65c after the announcement.
Craigs Investment Partners broker Peter McIntyre said the profit was a "positive result", but the company "has had its trials and tribulations in recent times and the result was well overdue".
Forsyth Barr broker Suzanne Kinnaird said over the past few years THL's performance had been "well below expectations", but she was happy with the progress it was making to improve the operating performance of its rentals business.
Tourism Holdings earnings before interest and tax (ebit) loss last year of $3.5 million was replaced by a $2.9 million gain this year from Rugby World Cup rentals, cost reductions in the building of large vehicles and the launch of the Motek brand, which is focused on vehicle sales.
Total operating revenue was up 27%, from $84.9 million to $108 million, including the first high-season profit from the Road Bear business in the United States, which represented $11 million of the revenue increase.
Mr McIntyre said the Road Bear acquisition had been important for Tourism Holdings, but cautioned the company had set its full-year 2012 budget at a US80c-$NZ1 exchange rate, and currency could yet have a bigger negative impact in second-half trading profitability.
Ms Kinnaird yesterday said: "As a sign of confidence in its outlook and the strength in its balance sheet, Tourism Holdings has reinstated its interim dividend at 2c, and we expect this will be matched by a final dividend of 2c." She also noted the Road Bear operation was the "star performer", but the areas which disappointed were Australian rentals, with ebit down 21% to $3.4 million, and the Leisure Group Waitomo businesses, Black Water Rafting and Kiwi Experience, with ebit down $300,000 to $700,000.
Earlier this week, Tourism Holdings announced it had entered a 50-50 joint venture with Kea Manufacturing to make campervans and motorhomes, prompting the closure of its Hamilton motor-body assembly business with the loss of up to 63 jobs.
The company said combining both companies' business skills, in the face of a downturn in European and United Kingdom visitors and the negative effects of high New Zealand and Australian dollars, would create a platform for strong profit growth.
The forecast for the year end is ebit between $16 million and $17 million, with after-tax profit in the range of $5 million to $6 million.
"The macro trends for the New Zealand and Australia rentals businesses remain difficult, with the high exchange rates being of particular concern," Tourism Holdings chairman Keith Smith said.
