Lakes Environmental's profits have turned around after services were cut in the first six months of the 2009-10 financial year.
The Queenstown Lakes District Council-controlled regulator's profit was $139,045 in the six months to December 31, compared to loss of $38,218 in the same period last year.
After tax, the surplus was $87,369.
A financial report to the council's finance and corporate accountability committee meeting tomorrow shows revenue increased by $152,008 compared to the previous year, to a total of $3,987,777.
Total expenses were $3,848,732, down $25,255 on the previous year.
Chief executive Hamish Dobbie said the company reduced its "public good" hours by 18% in the six-month period.
The reduction was a directive from the council under its contract for Lakes Environmental services.
It mostly affected the resource management (down 35%) and building ( down 72%) areas.
Animal control and liquor licensing public good hours had also been reduced by 23% and 27% respectively.
However, the cut in public good hours was having a negative impact on public perception of the services delivered by the company, Mr Dobbie said.
"It has created some pressure in some areas."However, both building (down 24%) and resource consent (down 16%) application volumes reduced significantly and staff numbers had continued to decline.
Staff numbers reduced from 83 to 76 in the six months, a reduction of 9%.
Mr Dobbie said a "realignment of roles" resulted in the number of senior managers being cut from five to three.
Compliance manager Tim Francis and environment manager Malika Rose were made redundant after their positions were axed.
"That was an unfortunate consequence of restructuring. It was not about performance or saving money.
"It was to create more integrated customer service," Mr Dobbie said.
Several team leader positions were created in the resource consent processing department.
However, the report shows employee benefits' expenses increased to $2,657,530 from $2,598,998 because the staff restructuring meant additional, unbudgeted employment-related costs.
"It is expected that the benefits of this restructuring will be seen in the second half of the year," it says.
The finance and corporate accountability committee will also consider the financial performance of Lakes Leisure and Queenstown Airport Corporation.
Lakes Leisure has recorded a $10,135 surplus, compared to a $212,775 surplus in the same period last year.
Chief executive Fiona McKissock said the surplus was not "cash available or profit".
"It is generally funding for capital projects that have not been completed within the financial period.
"We are tracking well against budget and holding costs, so we are in a positive position at half-year but there are some challenges to meet in the next six months," Ms McKissock said.
Alpine Aqualand's visitor numbers dropped 19%, from 13,697 to 11,064 visits a month.
"This typically happens to new facilities, but the swim per head of population at Alpine Aqualand is still higher than industry benchmarks.
"The closure of the hydroslide has impacted visitor numbers, especially families, and, therefore, revenue," she said.
The hydroslide was closed last June because of safety concerns after a spate of rider injuries.
An independent review in November said the slide must remain closed until modifications were made to improve its safety.
The centre's Alpine Health & Fitness gym has attracted more than 3000 visits a month since opening in October.
Queenstown Airport Corporation's profits soared 94% in the six months to December 31.
It reported an operating surplus of more than $2.02 million, compared to more than $1.05 million in the same period the previous year.
Chairman Mark Taylor said it was a healthy result in an uncertain period.
Passenger numbers were up 12%, from 363,668 to 408,426.
Favourable revenues were driven by an increase in flights, passenger loadings and good weather.
The airport also saw an increase in turnover on rents, commercial and car-parking revenues and a reduction in overheads.
