Dunedin City Council – Media Release
Dunedin City Holdings Limited Half Year Result to 31 December 2014
This item was published on 27 Feb 2015
The Dunedin City Holdings group is reporting an improved profit after tax and higher operating cashflows in its half year result, compared to the same period last year.
For the six months to 31 December 2014, total revenue increased by 9%, to $128.3 million. This was due to strong income growth from across the group.
The profit after tax has increased 17% to $10.1 million from $8.7 million for the same period last year.
Cashflows generated by the operations of the group were $96.4 million which was $4.4 million higher than for the six-month period last year. Capital expenditure for the group was $4.1 million higher than at the same time last year.
Term borrowings (including the term debt due to mature within the next year) have decreased by $25.8 million to $586.5 million. These borrowings include debt held with the Dunedin City Holdings (DCHL) group, DCC operations and the Forsyth Barr Stadium companies as they all flow through Dunedin City Treasury Limited, a DCHL group company.
DCHL Chairman Graham Crombie says, “The first six month of this financial year have produced a pleasing result for the group. Cashflow within the group is strong, the profit is higher and debt has reduced. This is a good outcome for shareholders, the ratepayers of Dunedin.”
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Aurora Energy Ltd has had a good start to the financial year, being ahead in revenue and with a higher profit than last year. This is helped by higher demand at present in Central Otago due to additional irrigation activity.
Delta Utility Services Ltd profit is slightly down on last year, but revenue has continued to grow. Last year’s results were influenced by the discontinuation of some activities within the group.
Dunedin International Airport Ltd profit was up compared to last year. Changes in capacity at the Airport continue to be a challenge for the company.
Taieri Gorge Railway Ltd is performing better than at the same time last year. The tourism market has picked up. Some of this has been due to the timing of the cruise ship session being earlier this year than last.
City Forests Ltd profit for the first six month period has reduced. Log prices have fallen from the highs last year. The drop in the New Zealand dollar has assisted the company recently.
Dunedin Venues Ltd and Dunedin Venues Management Ltd do not form part of the DCHL reporting group. Their results, however, have also been released for the six month period.
Dunedin Venues Ltd trading was very close to its result for the same period last year. For Dunedin Venues Management Ltd, revenue was on budget for the first six months ($3.9 million) which was slightly down on same time last year ($4.1 million). The loss for the first six months was $1 million. The company expects to makes its budget for the full year.
█ The half year reports can be found at http://www.dunedin.govt.nz/dchl
Contact Chairman, Dunedin City Holdings Limited on 03 477 4000.
DCC Link
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Posted by Elizabeth Kerr
What if? Dunedin... 
Did people notice that the under the table subvention payments directly to DVML so they can pay them back to DVL as ‘rent’ has ceased.
But instead has been replaced by $1m in loans from Aurora/etc (making it look like they only lost $1m rather than $2m) including a ‘loan’ of $300k from advance ticket sales for concerts – I think that allows them to take this cash in hand and treat it as income when really it’s money they owe some promoter. It also likely means that the tax treatment for this money is different – if the same money from Aurora/etc was transferred directly to DVL as a subvention payment it would result in a tax savings for DCHL, this likely means we’re wasting something in the range of $200k.
And all this money will eventually have to be repaid in the future, meaning that DVML is essentially borrowing from its future profitability, expect them to ask for an extra million dollars next year to cover the “unexpected shortfall” when they have to pay back the money they borrowed.
### ODT Online Mon, 2 Mar 2015
Debt drops by $25m
By Chris Morris
The Dunedin City Council’s group debt has dropped by more than $25 million on the back of stronger results by its companies, new figures show. The companies’ six month results to December 31, released on Friday, showed an improving picture, with group revenue up 9% to $128.3 million, while after tax profit jumped 17% to $10.1 million. At the same time, debt levels across the council and its companies dropped by $25.8 million, to $586.5 million, the companies’ reports showed.
Read more
● ODT: Stadium: ‘Completely different ball game’ promised
At ODT Online….
Good news …. and bad news
Submitted by MikeStk on Mon, 02/03/2015 – 10:49am.
Well there’s some good news here, DVML is no longer squirreling “subvention payments” from council companies that were supposed to go to DVL on to their ledger to make it look like they are coming close to profitability.
The bad news is that they’ve been replaced by over a million dollars worth of loans from those same companies, including borrowing money from ticket sales ($300k) for future concerts (much of which will have to be passed to the promoter) and counting that against their income too.
Read more
### dunedintv.co.nz March 18, 2015 – 5:51pm
DVML allocating funds to community groups
Staff at Dunedin Venues Management Limited are assessing applications for the latest round of community events funding. The company, which manages Forsyth Barr Stadium, gets $750,000 each year to allocate to community groups. That’s so the stadium can be used as a community facility, as well as a commercial venue.
The latest round of funding has attracted 25 applications from a variety of local organisations. They’ll be assessed over the next two months, and grants allocated accordingly.
A second round of funding will open in September, for community events to be held at the stadium next year.
Ch39 Link [no video available]
It will be interesting to see how many ‘community organisations’ are rugby related. Will need to check if they are fronts for the ORFU. Just wondering. I wouldn’t put it past them.
News from Christchurch City Council…. LTP considerations.
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### Stuff.co.nz Last updated 05:00, May 4 2015
Christchurch City Holdings loses its discretionary power
Source: The Press – Business
The Christchurch City Council is terminating its investment arm’s discretionary investment authority. Christchurch City Holdings (CCHL) will no longer be able to make investments up to a maximum of 1 per cent of the holding company’s total assets without consulting the council.
The change was revealed in CCHL’s draft statement of intent for the three years to June 30 2016, June 2017 and June 2018.
CCHL has assets of $3.2 billion with one per cent of that being $32 million. The assets comprises seven trading companies including the port, airport and electricity network.
Read more
### dunedintv.co.nz Thu, 24 Sep 2015
DCHL in strong position
More than $15m has been paid out to the city council and its subsidiaries in the last financial year.
Ch39 Link
39 Dunedin News Published on Sep 24, 2015
DCHL in strong position