The licensing trust board will discuss the financial impacts the pandemic has had on its business at its monthly meeting in Invercargill today.
Among items tabled in ILT chief executive Chris Ramsay’s report, is a summary of the operating profit for the first quarter (April to June this year) which includes the drop of more than $7million in sales and accommodation profit down 67%, as well as the allocation of more than $150,000 in approved grants last month.
Mr Ramsay said this week most of the 87 staff who were initially made redundant as a result of the impact of Covid-19, had been offered employment back in the business and 33 had taken up the offer of work.
"A lot of them have, some of them had found other employment and some others are looking at employment options they’re exploring elsewhere," he said.
While demand in accommodation and functions had still not bounced back since Alert Level 1 began, the increase in hospitality had surpassed predictions, so some staff had been redeployed to other areas of the business, he said.
"It’s [business] trending really positively in the right direction now, though I do say it with a wee counter of the high gross profit areas, of function activities and accommodation, are still well back on the same time last year but all other business areas have bounced back really well."
"It’s ahead of what we forecast.
"We were very wary of when we did the forecast because the concern for us was absolute unpredictably of how quick it would bounce back."
The Tiwai Point aluminium smelter announcement was also a "massive concern" for the business, he said.
"What we did the minute the announcement was made was just assess what direct revenue impact it would have on us if it was to close tomorrow. So at least we know our worst-case position."
The new Langlands Hotel build was the first thing Mr Ramsay considered when the smelter announcement was made.
"The worst thing that could happen, given we’re in the throes of building a hotel and Covid-19’s hit, but when you’re committed to a project and you’re committed to a future that’s beyond five and 10 years then you’ve got to make the move."
Business had now hit a level he believed they could continue to trade at.
"We know that we’re not going to hit the lofty heights that we hit last year, in revenue terms, in areas such as accommodation until the borders open.
"We’re not going to get that back, but the reality is where we’re settling now we’re happy with because it’s better than we forecast."
