Electric campervan trial coming for Tourism Holdings

Tuesday, 21 February 2017

Filling up for petrol may become a thing of the past if Tourism Holdings expands its fleet with all-electric campervans.

A trial of all-electric campervans is on the agenda for Tourism Holdings later this year.

Unlike hybrids which have a petrol engine to assist, all-electric vehicles rely solely on charging stations.

Chief executive Grant Webster said the distance capacity of the vehicles was unlikely to be a problem because most tourists stayed in camping grounds where there were plenty of opportunities to charge them.

The New Zealand campervan division of THL usually posts an interim loss but the visitor influx over recent months boosted it well into the black.

The Australian rentals business was also strong, and US operations were well ahead.

* Tourism Holdings sees higher 2019 profit**

Other income came from sales of older vehicles.

The strong performances combined to deliver the the NZX-listed company an interim profit after tax ending December 2016 up 38 per cent to $11.3m.

Chairman Rob Campbell has forecast a full year profit of $27m.

The company recently announced a $91m investment in El Monte Rents, the second largest rental business in the US, along with other investment initiatives there.

The latest result will deliver shareholders a dividend of 10 cents a share, currently trading at $3.92, representing a gross return (including share value movement) of 5.8 per cent.

Chief executive Webster said the second half result would most likely deliver a similar dividend given the policy of paying out about 85 per cent to 95 per cent of profits.

THL is the largest provider of rental vehicles in Australia and New Zealand and in US owns and operates Road Bear Rentals and El Monte Rentals and Sales. In the UK it owns half of Just go Motorhomes.

The company also operates Kiwi Experience and the Discover Waitomo group and has a joint venture in campervan manufacturing.