Dunedin City Council-owned trading companies have emerged from a tough year of recession with a 7.6% increase in revenue, and a modest increase in profit.
The annual result has left Dunedin City Holdings Ltd (DCHL) chairman Paul Hudson pleased with the performance, and with a guarded optimism for the future.
"It was a really, really good result," he said.
Revenue for the companies reached $214 million, up from $199 million last year, and profit was $8.7 million, up from $8.6 million.
DCHL's payment to the Dunedin City Council, money that offsets rates paid by Dunedin homeowners, would be $19.8 million.
Debt has increased across the companies, with Aurora's rising from $99.6 million to $106.2 million, and Delta's from $12.5 million to $17.9 million.
Mr Hudson said much of the increase was because of capital expenditure.
Dunedin City Treasury's debt rose the most, from $292 million to $361 million.
Asked if he felt confident about the future of the companies, Mr Hudson said he would only feel that way when employment rates got better.
"That hasn't happened yet."
Employment in Dunedin would benefit from some of the council's initiatives, including the Forsyth Barr Stadium, the Town Hall and Otago Settlers Museum redevelopments, and from the University of Otago's building plans.
However, jobs had been lost with the departure of Fisher and Paykel and the closures of various small businesses.
As is the case every year, Aurora Energy's $15.4 million profit made it the leading money-maker of the group.
Property development difficulties in Central Otago, a situation Mr Hudson said would affect the company when annual results were released last year, had made the going harder, with lower liquidity across all markets.
The network growth of Aurora had continued, but at a slower rate.
Delta had made the most of opportunities to expand business in the Wakatipu Basin, and had begun building a fibre-optic network in central Dunedin.
Dunedin International Airport Ltd had struggled with a decrease in international passengers, though the introduction of Pacific Blue flights had expanded the market.
The languishing export sector had created a less than ideal environment for City Forests, but a quick response to a three-month period when things improved had allowed the company to significantly improve its cash flow.
The possible sale of carbon credits was also on the horizon.
Citibus had improved its fleet, and the Taieri Gorge Railway had invested heavily in its future.
"The strategy of the DCHL board continues to be to pursue opportunities for growth where it sees the potential to develop or extend existing business," Mr Hudson said.
The dividends paid to the council were $9.5 million, and $10.3 million for interest on the council's shareholder advance, amounting to cash payments of $19.8 million - "a substantial distribution".
The council has requested $23 million next year.
• DCHL annual results
> Aurora Energy
Owns the electricity network assets of poles, lines, cables and substations within the immediate Dunedin area and in Central Otago.
Highlights:
Revenue:
2009: $81.6m
2008: $76.6m
Profit (loss):
2009: $15.4m
2008: $15.2m
> Delta Utility Services
A multi-utility service contractor providing a range of civil construction, environmental services, field services and electrical contracting to local authority, private sector and public clients.
Highlights:
Revenue:
2009: $87.8m
2008: $86.2m
Profit (loss):
2009: $3.8m
2008: $1.9m
> City Forests
Actively harvests and markets products from the 16,100ha of forests it owns. Products are sold in both the export and domestic markets.
Highlights:
Revenue
2009: $33.8m
2008: $30.3m
Profit (loss):
2009: $300,000
2008: $1.4m
> Dunedin City Treasury
Provides the group with funding and financial services.
Highlights:
Revenue:
2009: $25.7m
2008: $20.5m
Profit (loss):
2009: $11,000
2008: $15,000
> Citibus
Operates coach tour and charter services throughout the South Island, sightseeing, school bus and commuter services within Dunedin, and sightseeing services between Dunedin and the tourist centres of Queenstown, Wanaka and Mt Cook.
Highlights:
Revenue:
2009: $8.6m
2008: $6.8m
Profit (loss):
2009: ($300,000)
2008: ($700,000)
> Taieri Gorge Railway
Operates a daily tourist train on the Taieri River Gorge railway line and the Seasider service on the Karitane coastline.
Highlights:
Revenue:
2009: $4.6m
2008: $4.3m
Profit (loss):
2009: $14,000
2008: $59,000
