The Dunedin City Council's group of companies are set to
deliver ''really solid'' results to councillors this week,
despite some mixed performances, Dunedin City Holdings Ltd
chairman Graham Crombie says.
Mr Crombie told the Otago Daily Times he was
encouraged by the performance of the companies, even though
some continued to feel the lingering effects of the global
financial crisis and Canterbury earthquakes.
Aurora Energy Ltd, Delta, Dunedin International Airport Ltd
and Taieri Gorge Railway Ltd would all present their
six-month reports - covering the period to December 31 last
year - to this week's full council meeting.
The reports, made public before today's meeting, showed
Aurora had booked an after-tax profit of $5.79 million for
the period, while Delta continued to bounce back from a rough
2011-12 with a $2.765 million profit.
However, Dunedin International Airport Ltd, in which the
council had a 50% stake, recorded a profit of $895,483, about
$300,000 below its $1.2 million budget.
Taieri Gorge Railway Ltd had also struggled, with a $498,000
loss, which was larger than the $351,000 expected.
The latest reports came after Dunedin City Holdings Ltd, City
Forests and Dunedin Venues Management Ltd all reported to the
council in February.
DCHL's report had shown an after-tax profit of $8.667 million
across the group, up 10.1% on the previous year, while its
own profit was $1.4 million, down from $2.3 million in 2012.
City Forests' profit was up, at $5.1 million compared with $2
million the previous year, while DVML's loss - at $475,000 -
was a slight improvement on 2012, when it lost $690,000.
Mr Crombie told the Otago Daily Times on Friday the
companies' results showed ''really solid'' progress despite
some challenging conditions, and he was ''pretty comfortable
with how they're all travelling''.
That included the airport company, which he said was
''travelling along pretty well'' despite facing some
''challenging times'' in the wake of the Canterbury
''I think they're a little bit behind where they hoped to
be,'' he said.
Airport chief executive John McCall, in his report, said the
company had experienced a 5.1% drop in aeronautical income,
due in part to a reduction in domestic jet services landing
at the airport and changes to the type of aircraft that still
Scheduled domestic landings were steady, at 2731 for the last
six months of 2013, but international landings were down 6%,
to 140, he said.
Domestic passenger numbers were up slightly, by 0.8% to
402,487, in the same period, but international passenger
numbers were down 1.7%, to 34,797, he said.
Those factors meant the company's profit, at $895,483, was
25.9% below budget expectations.
But the company was not alone in facing tough market
conditions, as the Taieri Gorge Railway was also still
affected by disruption to the tourism sector caused by the
Canterbury earthquakes, Mr Crombie said.
''It's changed the nature of what people do. In the past,
lots of people would've flown into Christchurch and jumped in
camper vans or rental cars and cruised around the place.
''It's not back to where it was.''
Aurora's results had also been dented by a ''warm winter'',
but the company was now experiencing a ''trending up'' of
work related to subdivision and building developments, such
as new electricity connections and substations, he said.
DVML's result showed signs of improvement, and - with a
second All Blacks test for the year, against England,
scheduled for June - the company was ''pretty hopeful they'll
get a reasonable outcome'' for the year, Mr Crombie said.