Economic recession and bad weather contributed to an after-tax loss by Omarama Airfield Ltd, jointly owned by the Waitaki District Council and Omarama Soaring Centre Incorporated.
The company's 2009-10 annual accounts, forwarded to the council as 50% shareholder, showed an after-tax loss of $13,171, compared with a profit of $23,608 in the previous financial year.
Company chairman Hugh Cameron said landing fees and turnover were lower than forecast, mainly due to the downturn in the economy affecting leisure activities and poor weather over the Christmas holidays meant many visitors cut short their stay and returned home.
Another contributing factor in terms of landing fees was the national gliding championships, which were held in the North Island, alternating between there and Omarama each year.
Landing fees in the last financial year were $26,408 (almost $29,000 in 2008-09), and turnover was $47,867 ($56,310).
Income was also boosted by a one-off $37,778 from the sale of an easement, giving total income of $146,560 ($116,239 in 2008-09).
Expenditure totalled $88,732 ($92,631 in 2008-09), the largest item being depreciation at $20,367 ($19,879).
That left an operating profit of $57,829 ($23,608 in 2008-09), but resulted in the overall deficit after $71,000 in tax (nil in 2008-09).
One issue raised by Mr Cameron was the $16,718 paid out by the company for accountancy and audit fees. Because the district council has a 50% shareholding, the audit is done by Audit NZ and has to be to international financial reporting standards.
This was more expensive than the accounting principles which would normally apply.
Mr Cameron said this brought no additional value to the company and its shareholders, but was a considerable burden on such a small company, taking 15% of its income.
"It occurs to us that an Oamaru chartered accountancy practice could offer an adequate audit service at a significantly lower cost," he said, something the company wanted to explore with the council.
