THL
04/08/2015 08:56
GENERAL
PRICE SENSITIVE
REL: 0856 HRS Tourism Holdings Limited
GENERAL: THL: THL - Strategic Review of Capital Structure Complete
4 August 2015
TOURISM HOLDINGS LIMITED (thl)
NZX / MEDIA RELEASE
Strategic Review of Capital Structure Complete - Outcomes Announced
In April this year thl announced the commencement of a review of the capital
structure of the company. thl engaged First NZ Capital to conduct the review.
The process is now complete and the Board would like to announce the
following outcomes:
o thl expects to remain a publicly listed company.
o An updated dividend policy has been adopted. The policy targets a payout
ratio of 75-90% of annual Net Profit After Tax (NPAT). Consistency in
dividend levels is also a focus of the policy.
o thl believes it has significant balance sheet flexibility. The Board
intends to use this flexibility to focus on value accretive acquisitions,
either globally or domestically.
o thl intends to continue to use financial benchmark ratios consistent with a
Baa/BBB credit rating used by the recognised international credit rating
agencies as a guide for target debt levels.
o thl is targeting growth in NPAT to at least $30M in the 2019 financial year
from the existing businesses. The Board notes this is before any acquisitions
or greenfields development. The internal work completed through this
strategic review provides the basis for this goal.
o The Company is preparing to announce a number of new operational
initiatives at both the Annual Results release and Annual Meeting in
November. Whilst still in progress, these initiatives will increase revenue
and earnings, selling more services to rentals customers and vehicle sales in
the New Zealand market.
END
Authorised by:
Rob Campbell
Chairman
Tourism Holdings Limited
For further information contact:
Grant Webster
thl Chief Executive
Direct Dial: +64 9 336 4255 | Mobile: +64 21 449 210
Mark Davis
thl Chief Financial Officer
Direct Dial: +64 9 336 4212 | Mobile: +64 27 444 0199
End CA:00267891 For:THL Type:GENERAL Time:2015-08-04 08:56:01
