1988 ski season worst ever

Waimarino Bulletin, Volume 6, Issue 258, 11 October 1988, Page 1

1988 ski season worst ever

The managing director of New Zealand Ski Fields Tony Wright, last week described the 1988 season as the most difficult ever experienced in New Zealand.

"This is also true for Turoa. The usual first weekend in July opening was delayed one week, and marginal snow conditions persisted for the remainder of that month. "This was followed by extremely unsettled.

mild and rainy weather throughout August and September. This had its effect on patronage, resulting in gross revenue at September 30, 1988 being three per cent down from last year." While there is some

prospect of late season skiing at Turoa, Mr Wright anticipates this will not impact significantly on the season's results. "The drop in revenue, along with an increase in costs due to the reporting period now encompassing a full 12 months, (1987, nine months), and higher interest costs, will effectively eliminate any

chance of a profit being declared in respect of this year," Mr Wright stated. The directors of NZSF announced that,

following two successive poor snow seasons, major cost reductions have been initiated to ensure a return Turn paee 2

Worst Turoa season

From page 1 to acceptable levels of profitability. Mr Wright said last week the company was still working on the details of the cost reductions and that where they will be made will not yet be made public. They also announced a one for five issue of options. The options are to be issued free to shareholders. They will rank equally with existing options which were issued in 1986 at a cost of one cent per option. New Zealand Stock Exchange approval for listing of the options has been applied for. Books will close at 5pm Friday, October 21, 1988. Mr Wright said in a year of no profitability this issue of options will give shareholders some tangible benefit from their investment. "At the same time it sets the framework for subsequent supply of equity which will be necessary consequent upon a return to profitability and anticipated funding of growth." Details of the issue are: 1.6 million options to be issued to all ordinary shareholders of the company registered on October 21, 1988 at the ratio of one option for every five ordinary shares held. These options will rank pari passu with existing options. They are to be issued free to shareholders.

The options will carry an exercise price of $1.25 per option, and will be exercisable at the holder's discretion during the month of June in any of the years 1989-1993.

The options will be fully transferable and shall be entitled t o participate in any cash or bonus issue of equity prior to the exercise of the options.