NZ Ski Fields shows modest profit

Waimarino Bulletin, Volume 6, Issue 242, 10 May 1988, Page 11

NZ Ski Fields shows modest profit

Aeaiand Ski Fields Limited, which owns the Turoa Skifields operation on Mt. Ruapehu has reported a tax-paid operating profit of $147,000 for the nine months to 31 December 1987. This is down from $859,000 earned the previous period.

Gross revenue for the period to 3 1 December 1987 was down 9% to $3,312,000 (last year $3,634,000), reflecting the worst ski seasons for snow cover on record. The company's profit was after atax creditof $21,000 (last year tax provision of $487,000). Profit after tax and after minority interests of $15,000, (last year nil) and no extraordinary costs, (last year $180,000), was $ 1 32,000 (last year $679,000). A positive trading cash flow was generated of $536,000 (last year $936,000). Directors recommend a final dividend of 2%, being the only divided for the period, totalling $111,000. (Last year 8% totalling $330,000). Share registry will close on May 31, 1988 for dividend entitlement. Shareholder 1988 skifield carparking entitlement will also close on that day. To ensure that the balance sheet reflects more closely mar-

ket values, land and buildings have been revalued with an amount of $675,000 brought into account. (Last year nil). This has been taken in through an assetrevaluation reserve and is not included in the reported profit for the period. Net tangible asset backing per share after the revaluation is $1.15. (Last year $1.05). The Managing Director , Mr A.D.R. (Tony) Wright, described the result as pleasing considering the adverse circumstances of the 1987 season. "After an excellent start to the 1987 season when revenue was 33% up on last year, the skifield suffered a major loss of snow in early August. This was caused by heavy unseasonal rains whilst the country was affected by the influence of a weather phenomenon called 'E1 Nino'." "The conditions brought about by this rain prevailed through the normally high period of the season. Revenue for this

high period was down 5 1 % from last year," Mr Wright I stated. New facilities "We feel confident that the growth in New Zealand skiing will continue. We have continued our upgrading and development programme of the Turoa skifield, with more than $1

million spent at Turoa this year in preparation for the 1988 season." The immediate impact upon skiers will be the now totally sealed access road to the skifield from Ohakune. "This will give Turoa skiers the finest skifield access road in New Zealand. Other projects include the installation of a new high level T-Bar, the upgrading of the Giant cafeteria, the fitting of a new gearbox on the Giant chairlift and the purchase of a fourth snow groomer. Mr Wright commented, "That the business of

skifield operations is a volatile activity was clearly illustrated in this financial period being reported upon. The wisdom of initially restructuring NZ Ski Fields with no interest bearing debt was well illustrated. This ensured that borrowing facility was available when needed to finance the company's activities and capital developments over the 1987/88 off-season period." Good prospects Despite uncertain economic times, Mr Wright stated that N.Z. Ski Fields "remains confident that its

market will remain as keen as ever, to go skiing." Added interest for the 1988 season will be the international FIS ski racing series to be held at Turoa. Mr Wright added, 'Turoa is budgetting for a record number of skiers for the 1988 season. The additional facilities now in readiness for the season will greatly expand Turoa's capacity to service the North Island market. Turoa has more ski-lifts than any skifield in the South Island." By tradition, the 1988 season is expected to start onJulyl.