jasons travel media financial forecast to march 2013.pdf
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7/29/2019 Jasons Travel Media Financial Forecast to March 2013.pdf
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Jasons Travel Media Financial Forecast for Y/E March 2013
Continual Disclosure
(NZAX code: JTM)
25 March, 2013
As advised earlier this month Jasons is now posting an updated financial forecast for the
year ending 31 March along with commentary on current trading conditions and expectationsfor the start of the new financial year.
At the beginning of the financial year the company remained optimistic that the travel sectorwould weather the impacts of global economic change and experience improvement overthe period. At the half year the company indicated that it expected to deliver better year-endresults than the 2012 year, however, that is proving not to be the case.
In the half-year report the company did go on to caution that the tourism market remaineddepressed and that the motel sector in particular was the worst performing of allaccommodation tourism sectors.
As the company prepares to deliver its end-of-year financials, it is now obvious that theresult will be a net loss before tax. Accordingly, the company has breached its interest coverand Debt / EBITDA covenants with the ANZ Bank. The company has asked the bank towaive the breach and is working through this process with them. A further update will bereleased when the matter is resolved.
Although, the New Zealand operation has continued to be a challenge and New Zealandsales were slightly behind budget, Australian sales have fallen well behind budget. Followinga positive result from its Australian operation for the y/e 2012, that region has again droppedback to a loss for y/e 2013. As a result, the company has decided to significantly scale backemployee numbers and areas of operation in Australia for 2013/14. The company will also
account for non-cash adjustments and increased accruals for bad debts both in Australiaand New Zealand.
Jasons has tackled its balance sheet with rigour and paid down relatively large amounts ofdebt during a time of global economic uncertainty while at the same time implementing anumber of changes designed to better serve its customers and meet client expectations,says Jasons Chairman John Sandford.
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Weve strengthened and streamlined our internal processes, applied a much more strategicapproach to our business, and introduced a new digital product range to complement our
existing digital range and very successful suite of print products. No other travel mediabusiness in New Zealand can offer the depth and range of market access options providedby Jasons.
Recent research into consumer and market expectations and trends underpins a solid salesand marketing strategy that our New Zealand team are currently implementing nationwide.
Mr. Sandford said Jasons sell significant amounts of forward business and, although theteam are only 6 weeks into the 2013/14 sales programme, early indications are that thecompany should see better outcomes for the 13/14 year.
We remain cautiously optimistic, but the period ahead will be a challenging one. Were
focused on re-building the companys position as a profitable, successful company based onour position as a trusted source of travel information he said.
Ends
Contact:John SandfordChairmanJasons Travel Media ltd.E-mail:[email protected]
Phone: 021 926 942
mailto:[email protected]:[email protected]:[email protected]:[email protected]