Trans Holdings profit rises 30.3 ner cent

Press, 25 February 1978, Page 18

Trans Holdings profit rises 30.3 ner cent

j The group net trading pro-> | fit of Trans Holdings. Ltd, I rose 30.3 per cent in the six .1 months to November 30, com- \ pared with the previous cor-! ■ responding period, says the , chairman (Mr D. A. Mundell) in the half-yearly report to i shareholders.

Because of the seasonal nature of the company’s business, Trans Holdings has a dispensation from the stock exchange not to provide a profit figure, Mr Mundell told “The Press.”

The trading result is reigarded as satisfactory, in 'view of the subdued economic climate that prevailed during the period under review, he says.

The trading result was achieved on sales revenue increased 18.3 per cent to $19,683,122. ! Because Trans Holdings I has not been immune to the economic pressures in New Zealand during 1977, the

planned financial restructur-1 ing of the group has taken longer than anticipated. Mr! Mundell says. “With the expected im- : provement in investment con- 1 fidence and general liquidity i within New Zealand, it is expected that the final stages' of the group’s refinancing j will be concluded before the j annual balance-date, May 31.1

“The diversity of the group’s trading areas en-l abled it to weather the; sharp downturn in the Aus-1 tralian sales market during I 1977 much better than in the! past when Trans Holdings was involved in one facet of, the tourist industry. “Australia is the maiori market for New Zealand and Fiji tourism. More than; 70 per cent of passengers i handled by Trans Tours I (N.Z.) Ltd, and 50 per cent I of the passengers of Tourist Corporation of) Fiji, come from Australia,” he i says.

Since the beginning of the 1978 calendar year, an air of confidence has emerged in Australia. “Australians are now on the move again, which is confirmed by a steady rise in bookings being received bv Trans Tours (Australia), Ltd, and substantiallv increased sales for the rr.aior Australian retail travel chains to destinations world wide.

“This augurs well for a satisfactory result by Trans Holdings, in ’he year to May 31,” Mr Mundell says. On the subsidiaries, he says that Trans Tours (N.Z.) equalled its previous best half-yearly result despite depressed market sales, and similarly Trans Hotels (N.Z.) attained a profit in line with the corresponding period last year, in difficult trading. The contribution by the

transport division rose substantially, and the trend is expected to continue in the final six months.

“Trans Tours (Australia) did not escape the recession that occurred in Australia during J 977 and because of the difficult trading, total sales reached 79.4 per cent of the budgeted figure. “The Tourist Corporation of Fiji continued to trade profitably during this period. The spectacular increases in passengers handled and hotel occupancy rates enjoyed at the commencement of the 1977-78 financial year unfortunately were not maintained.

“Nevertheless it is pleasing to note that in the six month period, passengers handled by the Corporation rose 46 per cent compared with the previous corresponding period,” Mr Mundell says.