THL - Tourism Holdings

[Left Field]

Can't believe we haven't a thread for this one yet? Must be a mistake?

Aaaannyway.... nice to start a thread with a profit upgrade..... Over $30 mill NPAT expected in FY23!

https://www.nzx.com/announcements/400347

[winner (n)]

Maybe the start of big things for a bigger reinvigorated thl

$30m plus this year is an eps of 20 cents .... post completion of takeover and further growth and all those synergies anything is possible

Maybe a $4 share price next year

[Arbroath]

$6.00 by end of 2024

[Left Field]

Just goes to show.....

Miracles happen (and)

Every dog has its day.

Crikey, top of the leader board today. Holders must be ecstatic.

[Ferg]

I heard the CEO Grant Webster on the Radio this morning.  He expected business would be back to normal by about mid 2024. Australia is going well, US sales have slowed and NZ sales are around 50% of historical volumes.

[Crackity]

Can't believe we haven't a thread for this one yet? Must be a mistake?

Aaaannyway.... nice to start a thread with a profit upgrade..... Over $30 mill NPAT expected in FY23!

https://www.nzx.com/announcements/400347

The long-awaited merger between Apollo (ATL) and Tourism Holdings (NZX:THL), both Fund investments, was finally approved by competition regulators on both sides of the Tasman. The recreational vehicle operators buy, build, rent and sell vehicles in Australia, New Zealand, North America and Europe.

When the deal was first proposed in December 2021, it was optimistically assumed to complete by June 2022. Then competition authorities, New Zealand's NZCC and Australia's ACCC, raised some yellow flags. The companies are close competitors and the authorities worried that consumers would end up paying more.

To assuage these concerns, the companies offered to divest more than 70% of Apollo's Australian and NZ fleets to Jucy Rentals, a small competitor. Jucy was recently acquired by private equity player Next Capital and will take on the campervans, locations and the Star RV brand from Apollo. It will become a legitimate competitor to the combined group.

During the long deal period Apollo's Australia-heavy operations recovered faster than THL's NZ rental-heavy business. So Apollo shareholders were given a sweetener and will now own 27.5% of the combined group, up from the original 25% ownership.


The benefits of the merger remain significant for both parties. Synergies were estimated to be NZ$17-19m, about two-thirds of Apollo's stand-alone profitability. The combined group will be able to buy better, build their own inventory in Australia and NZ, rent more effectively across the world and sell better through company-owned networks.

Combined, these two stocks represent the largest investment in the portfolio and have seen some share price appreciation as the merger has become more likely and operational improvement has become clearer. There is still plenty of value on offer.

[Playa]

NZ Tourism sector should go from strength to strength with the low NZ $, making NZ an attractive destination for overseas visitors

[Crackity]

Oct 18 (Reuters) - Apollo Tourism & Leisure Ltd (ATL) :

FY23 GUIDANCE UPDATE

RENTAL REVENUE EXCEEDED INTERNAL TARGETS IN Q1 FY23 IN EVERY REGION

CURRENTLY ANTICIPATING RECORD LEVEL OF UNDERLYING NET PROFIT AFTER TAX (ON STANDALONE BASIS) IN FY23 OF ABOVE A$20 MILLION

[Crackity]

THL Off to the afternoon races today -hmmmm - probs driven by the Aussie market - sometimes takes them a bit longer to read documents 

[Basil]

Well done Crackity.  I missed this one but kudos to you and best wishes with it.

[KW]

I was a bit disappointed to find out that they have to sell 80% of the Apollo business to Jucy for competition purposes.  It would have been a cracking business if they had been able to keep it all.  Now have to ask what kind of revenue and profits will the 20% they get to keep will contribute.

[Crackity]

I was a bit disappointed to find out that they have to sell 80% of the Apollo business to Jucy for competition purposes.  It would have been a cracking business if they had been able to keep it all.  Now have to ask what kind of revenue and profits will the 20% they get to keep will contribute.
[/e



Oops my quoting went awry.....


Not quite that bad....

To address the ACCC's concerns, THL and Apollo subsequently offered a court-enforceable undertaking to divest 200 (around 80 per cent) of the four to six berth motorhomes in Apollo's Australian rental fleet and associated forward bookings to an ACCC approved purchaser.


Total rental fleet in Oz was 1050 according to the just released annual report


Arguably Next Capital got the best deal - bought Jucy out of receivership and adding 200 campervans from Apollo/THL as well. They smart peeps 

[KW]

Dont worry, Jucy will probably be IPO'ing in 3,2, 1 .... 

[Hectorplains]

The other stock to get three picks this year was Tourism Holdings, picked by Jarden, Craigs and Forsyth Barr.

In theory, it should be well placed to ride the back of a solid recovery for tourism in 2023.

"While it operates in an industry tied to the fortunes of the economic cycle, we see positive signs ahead," said Lister.

"It offers excellent exposure to the recovering travel sector, and should tourism keep improving as we expect, the company is well placed to capitalise on this. We also believe the Apollo merger is a positive for the business."

Jarden's Allbon said the merger between THL and Apollo Tourism & Leisure had created the world's largest recreational vehicles (RV) rentals business.


"THL is our preferred Covid recovery play, with a strong earnings outlook underpinned by pent-up tourism demand, merger synergies and a more manageable cost base (vs airlines) to underpin delivery," he said

Brokers' keen on THL in today's Herald picks.  Of those three, only Forbar came out ahead on last years pick thou!  I'm not so sure about this "pent up tourism demand" either.  Wonder what underpins that assumption?  The rapid rises in the cost of living would be a counterweight anyway.

[Ricky Bobby]

From memory THL was in a bit of trouble pre covid with their new software system that cost a lot and don't know if it ever got going... tempted to buy again, but not sure if the times right. A bit of a gamble, but one that could pay off!