Tourism Holdings questioned over 20% fall in price

By Phil Boeyen, ShareChat Business News Editor

Friday 17th May 2002

A drop in Tourism Holdings' (NZSE: THL) share price has sparked an inquiry from the Market Surveillance Panel but the company says recent results are running to plan.

The inquiry came after the tourist operator's share price fell to 80 cents in early morning trading on Friday, a 16 cent or 20% drop from earlier in the week.

In February the company told the market that its result for the year ended June was likely to be breakeven at best, with a small loss possible.

"The company has no new information at this time and expects to achieve this forecast of breakeven before one off gains or losses from the sale of non-strategic assets," THL says in a market notice.

"To date one small business, namely Milford Hydro Scheme, has been sold at slightly more than book value. Fleet disposals of campervans and coaches remain as planned and results to the end of April are in line with forecast."

Investors have been unhappy with Tourism Holdings performance for some time but particularly as its results have not kept pace with a generally stronger tourism market in New Zealand.

In the past six months a number of other tourist operators such as CDL Hotels (NZSE: CDL) and especially Auckland International Airport (NZSE: AIA) have reported improved results.

THL's earnings for the six months ended December were 61% down on the previous year at $2.56 million, which the company attributed to the combined effects of the global tourism downturn and Ansett Australia's collapse.

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