Skifield shows profit

Waimarino Bulletin, Volume 4, Issue 48, 19 May 1987, Page 6

Skifield shows profit

New Zealand Ski Fields Limited, which owns the Turoa Skifields operation on Mt Ruapehu, last week reported a maiden tax-paid operating profit of $859,000 for the nine months to March 31, 1987. This is ahead of the recent prospectus forecast of $831,000. The company's result is subject to final audit. Gross revenue for the period to 31 March 1987 was up 32% to $3,633,000 (last year $2,750,000). Th company's profit was after tax provision of $487,000 (last year credit $28,000). Profit after tax and extraordinary costs of $180,000 was $679,000 (last year $337,000). The extraordinary costs relate to the recent public issue. The managing director, Mr A. D. R. (Tony) Wright, described the result as satisfactory being in line with expectations. "We feel confident that the growth in New Zealand "skiing will continue. New marketing initiatives are also being taken in the Australian market. A new development plan is currently being prepared, geared to meet this anticipated increased demand." "The construction of the new quad chairlift is proceeding wcll and will be open in time for the 1987 season. In addition, another large section of the access road has been sealed, making 15 kilometres out of 17 kilometres now sealed. The skifield restaurant is being

extended and upgraded. We are confident these improvements will further enhance the international rating of Turoa Skifields." The 1987 season also sees the new initiative taken by the company in providing new skier accommodation, starting with the up-market Beechers Lodge development in the Turoa Alpine Village, Ohakune. Other expansion in Ohakune will combine to contribute to the popularity and appeal of the resort. Since 31 March 1987 balance date, New Zealand Ski Fields has completed a succes'sful public share issue, lifting paid up capital to $5,525,000. A feature of that share issue was certain shareholder benefits on the skifield and in relation to the company's accommodation developments. Holders of more than 5,000 shares in New Zealand Ski Fields registered by 25 May qualify for the Benefits. The company sold 500,000 new shares and one million existing shares. Last week these $1 shares were quoted on the New Zealand Stock Exchange at $1.25. Mr Wright stated, "The objective of this share issue was to enable the company, largely through equity sourced capital, to optimise its potential as an international standard ski resort. At the same time, it will contribute to and benefit from tourist development in the Ruapehu-Taupo region generally."