In October THL paid $69 million, with shareholder approval, to acquire competitors United Campervans and Kea Campers, which boosted its camper van fleet by 1000 vehicles.
THL planned to reduce its then fleet of 2500 by almost 30% to 1800, and yesterday booked an almost 70% increase of fleet sales - from $18 million for the six months to December last year to $30.5 million - from 665 motorhome sales.
The fleet sales underpinned the overall 8% revenue increase to $78 million. Craigs Investment Partners broker Peter McIntyre said while the result had been flagged and ''would not surprise the market'', it was still ''very weak''.
Mr McIntyre was ''surprised'' THL had announced a 2c dividend for the period when debt reduction ''had clearly been the focus''. Its shares dipped 1c to 67c after the announcement, on light volumes. THL's net debt had risen from $39 million from mid-2012 to $134 million, which included $50 million for the Kea and United purchase, with the equity ratio falling from 49% to 42%.
''They are pushing on with restructuring. It's now looking like 12 to 18 months out before the restructuring programme is successfully bedded in,'' Mr McIntyre said.
THL chairman Keith Smith said the company continued to face ''significant challenges'' in the core inbound tourist markets from Europe, the United Kingdom and the United States.
''However, we're satisfied our first-half result was on track with expectations for the period. The success of the [Kea/United] merger demonstrates THL is making good progress reconfiguring the business for these conditions,'' he said in a statement.
The full-year debt targets are in line to fall from $134 million to $117 million, but the Australian business' earnings will be below previous market guidance and the after-tax profit forecast of $6.7 million would actually fall within a range of $3 million-$4 million, Mr Smith said.
Breakdown
THL's six months trading to December
•Operating revenue up 8% from $100.7 million to $108.5 million
•Earnings before interest and tax, down 54%, from $11.4 million to $5.3 million.
•Profit after tax down 112%, from $4.1 million to a $500,000 loss
•New Zealand van rentals revenue fell 20% from $25.1 million to $20.2 million.
•Australian van revenues rose 1% from $37.1 million to $37.4 million
•United States van rentals grew 1% to $11.4 million, from $11.3 million
