THL - Tourism Holdings

[winner69]

Jeez — Rob Campbell reads the same stuff as I do T breakfast time —

Grant and I have spent some time discussing how best to portray the strategy on which we are engaged in thl. Reading early this morning, I discovered a new study released by Boston Consulting Group and Fortune which identifies the key things which distinguish companies which are both established and manage to thrive in a changing market. They describe this characteristic as “vitality” and quote the novelist F Scott Fitzgerald as saying “vitality shows not only in the ability to persist but the ability to start over”. That captures what we are trying to do.

As Bon Jovi said ‘keep the faith’ .....but at least Rob said something big about to happen ....one day ....so let’s hope the market builds this into the share price and don’t worry about short term declining profits and stretched cash flows

[minimoke]

Shame they aren't heeding the "diversity" cry. Only one white male on the board by the looks of it. No cries of "Over representation of stale pale female"?

[winner69]

Shame they aren't heeding the "diversity" cry. Only one white male on the board by the looks of it. No cries of "Over representation of stale pale female"?

Could be the reason they are doing so well after so many years of being a market pariah

[percy]

Could be the reason they are doing so well after so many years of being a market pariah

Yes Rob Campbell was the catalyst.
White male.
"The Power of One."

[simla]

th2 will create a $15m hit against profit before tax next year we were told with the 2018 results. But it seems possible that that comes from expensing development costs, though we cannot know that. You might therefore possibly take the view that the underlying profit might be increasing nicely if that was depreciated instead of expensed? Software is about the only major investment that often gets expensed instead of depreciated and maybe we should remember that if so?

[winner69]

Yesterday’s article posted here extract —

“The absolute worst case scenario is we’ve created a product that’s excellent for our customers........” .....and not too much in it for thl

[BlackPeter]

Not really following them these days, but just curious. My notes contain still a comment that the company targeted for 2020 $50m NPAT (which would be 43 cents per share). This target looked already optimistic before THL decided to sink millions into TH2, and it was never shared by the analyst consenus.

Anybody knows what happened to this target? Am I right to assume that they didn't mention it in the recent AGM - did they?

[simla]

They said they are reviewing their future goals due to making a lot of changes lately, but had no reason to back away from that forecast presently.

[simla]

Probably an important part of the presentation was: p7 http://nzx-prod-s7fsd7f98s.s3-websit...075/289588.pdf

"Currently, we see potential M&A opportunities across the world. Although there are some opportunities for small additions in New Zealand, we consider this to be less likely given that we already have a strong presence. We also see small opportunities in Australia for acquisitions within our core business as well as in adjacent businesses. Looking further in the world, we are also exploring opportunities within the USA and the UK.

We also keep a close eye on markets across the globe that we don’t currently operate in, but that are experiencing strong RV sector growth such as Europe, Canada and China. We are considering greenfield development, partnerships and acquisitions as the methods of entry.

Beyond M&A activity, we consider that there are still further growth opportunities in the jurisdictions that we operate in today. We will continue to take advantage of those opportunities by leveraging all aspects of the RV eco-system and continuing to implement our core business model of building, renting and selling to maximise the value we get from each RV."

It seems likely that the sale of assets recently mentioned are to go in that direction at a guess?

[forest]

Not really following them these days, but just curious. My notes contain still a comment that the company targeted for 2020 $50m NPAT (which would be 43 cents per share). This target looked already optimistic before THL decided to sink millions into TH2, and it was never shared by the analyst consenus.

Anybody knows what happened to this target? Am I right to assume that they didn't mention it in the recent AGM - did they?

Yes the target has slightly changed as I understand it, to $50m NPAT from continuous operations. We just do not know at present which operations will be sold of and which might be added in 2020. So depending on the profitability of what gets sold or added their is likely an adjustment. That is my understanding.