Last June, Delta bought the assets and business of Queenstown company Lakes Contract Services (LCS), for an unconfirmed $2 million outlay, which included ongoing maintenance contracts with the council.
Delta chief executive John Walsh yesterday confirmed the mowing and tree trimming contract had gone to another competitor and on July 1 Delta would have no further council contracts.
"We lost the mowing and tree trimming; but that's contracting. It's not the end of the business,'' Mr Walsh said of industry speculation on the Queenstown branch's future.
The former LCS held the council's Contract 330, which dealt with water and sewerage, reserves, cleaning and footpath services.
Mr Walsh said that of the 45 staff involved in work connected with former LCS-held contracts, plus a further 15 in electrical positions, there were 'unlikely to be any job losses".
He said the skill base of staff was varied and tradesmen employment still high in the Wakatipu Basin.
Since the announcement last week covering the outcome of the council contracts, knowing now that Delta staff were coming off contracts meant negotiations could proceed with other parties for new contracts, Mr Walsh said.
"There are plenty of other contracts out there. Contracting is by its nature cyclical. At any one time any [division] of Delta may be soft [on contracted work at hand],'' Mr Walsh said.
Earlier in the month, Delta posted an after-tax profit of $1.04 million for the six months to December, compared with $1.72 million for the same period last year.
Revenue increased 18.7% from $34.7 million last year to $41.2 million for the six months to December.
A dividend of $2 million was paid for both the six months to December 2006 and six months to December 2007.
