Dunedin City Holdings Limited Half Year Result

Dunedin City Holdings Limited Half Year Result to 31 December 2014

Dunedin (Friday, 27 February 2015) – The Dunedin City Holdings group is reporting an improved profit after tax and higher operating cashflows in its half year result, compared to the same period last year.

For the six months to 31 December 2014, total revenue increased by 9%, to $128.3 million. This was due to strong income growth from across the group.

The profit after tax has increased 17% to $10.1 million from $8.7 million for the same period last year.

Cashflows generated by the operations of the group were $96.4 million which was $4.4 million higher than for the six-month period last year. Capital expenditure for the group was $4.1 million higher than at the same time last year.

Term borrowings (including the term debt due to mature within the next year) have decreased by $25.8 million to $586.5 million. These borrowings include debt held with the Dunedin City Holdings (DCHL) group, DCC operations and the Forsyth Barr Stadium companies as they all flow through Dunedin City Treasury Limited, a DCHL group company.

DCHL Chairman Graham Crombie says, “The first six month of this financial year have produced a pleasing result for the group. Cashflow within the group is strong, the profit is higher and debt has reduced. This is a good outcome for shareholders, the ratepayers of Dunedin.”

Aurora Energy Limited has had a good start to the financial year, being ahead in revenue and with a higher profit than last year. This is helped by higher demand at present in Central Otago due to additional irrigation activity.

Delta Utility Services Limited profit is slightly down on last year, but revenue has continued to grow.

Last year’s results were influenced by the discontinuation of some activities within the group.

Dunedin International Airport Limited profit was up compared to last year. Changes in capacity at the Airport continue to be a challenge for the company.

Taieri Gorge Railway Limited is performing better than at the same time last year. The tourism market has picked up. Some of this has been due to the timing of the cruise ship session being earlier this year than last.

City Forests Limited profit for the first six month period has reduced. Log prices have fallen from the highs last year. The drop in the New Zealand dollar has assisted the company recently.

Dunedin Venues Limited and Dunedin Venues Management Limited do not form part of the DCHL reporting group. Their results, however, have also been released for the six month period.

Dunedin Venues Ltd trading was very close to its result for the same period last year. For Dunedin Venues Management Ltd, revenue was on budget for the first six months ($3.9 million) which was slightly down on same time last year ($4.1 million). The loss for the first six months was $1 million.

The company expects to makes its budget for the full year.
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