Trust chairman Ali Brosnan puts the loss down to a substantial fall in revenue, combined with increased operating costs and continuing difficult conditions in the hospitality industry.
Today, the trust releases its result for the 2010-11 financial year, its annual accounts showing a $1,448,767 loss. That came with a substantial drop in operating revenue - from $11.4 million in 2009-10 to $8.76 million last financial year - and a corresponding drop in operating expenditure from $11.7 million to almost $9 million.
That left an operating loss of $251,891 compared with $271,367 in 2009-11.
Where the trust was hit was in interest ($280,098) and an impairment cost (revaluation) for the new Northstar complex ($916,778), which boosted the overall loss to $1.4 million.
The trust's total assets also declined to about $7.2 million, compared with just over $9 million in 2009-10.
The trust operated five outlets in Oamaru last financial year, although it closed Waitaki Wines and Spirits, which was to promote local wines and quality spirits, after it recorded a $47,000 loss.
The Northstar complex, a $3.2 million redevelopment of the former Northside complex, was the biggest loss maker ($233,000) in its first full year of operation, but that included depreciation of $332,000.
The Kingsgate Brydone Hotel also made a loss for the year of $51,000, against a profit of $52,000 the 2009-10 year.
Fahrenheit bar had a net profit of $8000 and Oasthouse Liquorland a profit of $134,000.
After the loss in 2009-10, which prompted the biggest turnout for years at a trust annual meeting and criticism of the publicly elected board, a major review of operations was undertaken. The trust also brought management back to Oamaru, recently appointing Carey Lister as its chief executive.
Mr Brosnan said operating costs increased, especially in repairs and maintenance to the Brydone Hotel which was targeted by the board for major improvements and upgrading over the next two years to get it back to a 4-star ranking.
The decrease in revenue had come from a reduction of $2.7 million in sales through the Oasthouse, after it was decided to discontinue the wholesale operation.
Wholesales were stopped because, while they generated turnover, profit margins were very low and carried high risks from bad debts.
While revenue from Northstar improved, it was offset by a reduction in income from the Brydone Hotel.
Operating expenses increased across all establishments, rising to 167.5% of revenue last financial year, compared with 13.4% in 2009-10.
That was largely due to increases in commodity costs against declining revenues.
All establishments continued to face challenging conditions within the hospitality trade.
"The year ahead will no doubt be another difficult one as we balance our responsibilities to upgrade and maintain our venues - the Brydone Hotel in particular - with the need to improve our balance sheet and turn the trust into a more financially sound community asset," Mr Brosnan said.
