Tag Archives: Consolidated debt

DCC: DCHL/DVL/DVML limited half year result | Term borrowings $586.5M

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.

Graham Crombie DCHL 2DCHL 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.”

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

Posted by Elizabeth Kerr

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Filed under Business, DCC, DCHL, Delta, DVL, DVML, Economics, Name, New Zealand, People, Politics, Project management, Property, What stadium

Newspaper errs . . . #Dunedin #Elections

Post updated 24.12.13
This link and content has been removed from ODT Online:

Opinion: DCC councillor report cards
http://www.odt.co.nz/news/dunedin/274117/opinion-dcc-councillor-report-cards

Received.
Sunday, 22 September 2013 12:03 p.m.

Election hoardings 1

—— Forwarded Message
From: Lee Vandervis
Date: Sun, 22 Sep 2013 12:01:03 +1200
To: EditorODT , NICHOLAS GEORGE S SMITH, “Julian. Smith”
Cc: Chris Morris
Conversation: A reporter’s ranting ratings! – Letter to the Editor
Subject: A reporter’s ranting ratings! – Letter to the Editor

Letter to the Editor.

A reporter’s ranting ratings! – on voting-papers-weekend!

Dear Editor,

With two pages of a reporter’s ranting ratings! on Councillors, the ODT has emotively screwed with voter preferences just as their voting papers arrive.
For the Mayoralty the ODT has again backed a TV-show-pony instead of a work-horse.

Where was Saturday’s headline ‘Cull falsely claims saving ratepayers $100+ million’ when the ODT knows he tried costing us that $100+ million in 2012 to disguise a double digit rates-rise? *
Where is the headline ‘Imaginative and informative election posters from Vandervis’?

You have helped buy a Stadium that we can not pay for, neither capital nor operational, and failed the only candidate that told you so and still might have been able to pay for both.
You are sending our new CEO saviour in search of a saner situation.
You have, in this most important ODT issue of the triennium, taken the Dunedin disease of savaging style over substance to new debilitating depths.
You have permanently compromised any perceived impartiality of your primary DCC reporter, and warned off any decent future DCC candidates.

Winchell’s fate awaits you.

Cr. Clydesdale Vandervis

[“Walter Winchell – Wikipedia, the free encyclopedia
en.wikipedia.org/wiki/Walter_Winchell
You know what Winchell was doing at the end? Typing out mimeographed sheets with his column, handing them out on the corner. That’s how sad he got.”]

* “Mayor Dave Cull said he was “vehemently opposed” to repaying the debt over 40 years, because of the interest it would add to the bill, but would support it in the meantime to keep rates down.” [ODT 26 Jan 2012]
—— End of Forwarded Message

Posted by Elizabeth Kerr | in the interests of health and safety in the social and built environment at Dunedin [townscape] —mind the curve

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Cull on senility (firing up graduates)

HOW TO CAPTURE THE UNIVERSITY VOTE ?!?

[Mayor Cull] also noted the “mental sclerosis and settled habits that so often accompany age”.

F***erama! The Old Fool Codpiece spins towards his grave, with the Jinty espied as Angel.

Dave Cull merge copyAgeist: A person who discriminates based on age…usually an old dude or a dumb blonde [Urban Dictionary]

### ODT Online Mon, 19 Aug 2013
Graduates urged to take place as leaders
By John Gibb
Planet Earth and its inhabitants are facing a “perfect storm” of extreme climatic and environmental challenges and the future will have “no precedent in the past”, Dunedin Mayor Dave Cull has warned. The pace of change was now so great that University of Otago graduates should not wait to become what was “sometimes patronisingly” termed “the leaders of tomorrow”, but should start leading now. That was Mr Cull’s message in an address to about 350 graduates, in a wide range of disciplines, during the university’s latest graduation ceremony, at the Dunedin Town Hall at 3pm on Saturday.
Mr Cull said that over the past few years he had “learned more from younger people than older”. And, including while hearing submissions on various plans and strategies, he had been ”incredibly impressed by the commitment, intelligence, passion and values of so many of the young people”, particularly those in the city’s tertiary education sector. “That’s not undervaluing the wisdom of age, just appreciating the vibrant pertinence of so many younger voices and minds.” And he also noted the “mental sclerosis and settled habits that so often accompany age”.
Read more

Related Post and Comments:
16.8.13 DCC nominations —All the mops, brooms and feather dusters

● Ageism, or age discrimination is stereotyping and discriminating against individuals or groups because of their age. It is a set of beliefs, attitudes, norms, and values used to justify age based prejudice, discrimination, and subordination. This may be casual or systematic.

Posted by Elizabeth Kerr

*Image: Photomerge by Whatifdunedin – Mayor Cull explains the loss-making sale of Carisbrook to Calder Stewart (stills from Channel 39 footage)

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Stadium financials: Calvin Oaten on DVML, DVL and DCHL

### ODT Online Fri, 2 Nov 2012
Opinion
DCHL covering DVL and DVML losses
By Calvin Oaten
Stadium finances dismay, says the headline (ODT, 31.10.12). The story states Dunedin Venues Management Ltd (DVML) as posting a loss of $3.214 million. Mayor Dave Cull says “it is not sustainable”.

But let’s look at the combined performance of DVML and Dunedin Venues Ltd (DVL) and we see a fuller picture. Let’s face it, these two entities are joined at the hip and are no more than an arrangement of convenience, for the dispersion of liabilities attached to the stadium. DVML’s loss at $3.214 million is arrived at after receiving revenue of $6.093 million, offset by expenses of $6.395 million.

It then pays DVL $3.667 million rental for the use of the stadium. This is offset by receiving a (subvention) payment of $782,000 from Aurora. Net loss $3.214 million. But we then need to add the carried forward loss of $3.256 million from the previous period to disclose the consolidated loss at $6.470 million.

Turning now to DVL, we find the declared position is: Revenue $3.672 million, expenses $16.051 million for a loss of $12.379 million. This is offset by a (subvention) payment from Aurora of $7.292 million leaving a loss of $5.087 million.

This is offset by a tax credit of what could be $775,000 for a net loss of $4.312 million To this is added interest rate swap losses (a totally incomprehensible concept) of $8.579 million for a total consolidated loss of $12.891 million.

So combining the two scenarios we have a total consolidated loss attributable to the stadium of $19.361 million. This, Mr Cull, is really what is not sustainable.

Interestingly, nowhere in either set of accounts can one find any evidence of income derived from the much vaunted private funding. Why? Is it because as the PwC report says, it can only be treated as operational revenue, and therefore goes direct to the events promoters such as the ORFU?

Looks like it. They in turn simply pay – or not – a rental to DVML for the use of the stadium by event. This is what is expressed in DVML’s revenue statement. All this raises the question: what happens if DCHL is unable to produce those subvention payments?

It has already served notice that since July 1, 2012, it will no longer borrow to provide payments of $23.2 million to the DCC which consisted of, $10.450 million dividend, $5.25 million capital repayment of stadium debt, and subvention payments to DVL and DVML. As can be seen this amounts to $17.25 million offsetting the already considerable losses incurred.

There is no doubt but that the stadium will figure very largely in the city’s future funding difficulties, which are so manifest.
ODT Link

Posted by Elizabeth Kerr

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Stadium financials: JimmyJones v Peter Hutchison (DVML) on accounting method

### ODT Online Wed, 31 Oct 2012
Stadium finances dismay
By Chris Morris
Dunedin Mayor Dave Cull says the Forsyth Barr Stadium’s finances are “not sustainable”, after confirmation the company running the venue lost nearly $1 million more than expected in its first year of operation. The result was contained in Dunedin Venues Management Ltd’s 2011-12 annual report, released to the Otago Daily Times yesterday, which showed the company lost $3.2 million in its first year. […]A copy of Dunedin Venues Ltd’s annual report was also released yesterday, and showed the company that owned the stadium – and received rent from DVML – recorded a $4.312 million loss for the same period.
Mr Hutchison cautioned against adding the two losses together, as they overlapped, and because DVL’s results were largely accounting losses – not cash – and expected. “It [DVL] is behaving exactly as it should do.”
Read more

More ‘fallout’ stories at the Otago Daily Times:
● Wed, 31 Oct 2012 – Report about stadium loss slips under radar
● Thu, 1 Nov 2012 – Councillors blindsided by DVML results
● Thu, 1 Nov 2012 – Stadium loss rates fears
● Fri, 2 Nov 2012 – Stadium rate ‘tax on being busy’

The following comments appear at ODT Online, in reply:

DVL loss not as expected
Submitted by JimmyJones on Thu, 01/11/2012 – 2:56pm.

DVL and DVML director Peter Hutchison says that the size of DVML’s $4.3 million loss was as expected. This statement does not match with the official forecast in DVL’s Statement of Intent which predicted that the year’s result for 2012 would be $6.5 million (before the ratepayer subsidy). This latest result is a loss of $11.6 million (before ratepayer subsidy) – so this is much worse than expected.
The loss of $11.6 million is much bigger than the official $4.3 million loss because this doesn’t include the $7.3 million DCC subsidy. It is wrong to exclude the DCC subsidy when considering the overall effect on the finances of the DCC and the ratepayers. Both DVL and DVML are paid a subsidy that doesn’t show-up in their net profit/loss figures.

****

Stadium losses add up
Submitted by JimmyJones on Thu, 01/11/2012 – 11:47pm.

Mr Hutchison, the director of the stadium owning company DVL, says that the losses of DVL and DVML can’t be added together because they overlap. This is misleading and seems to go against the basic principles of accounting. Each of the companies is a separate entity and they have separately audited accounts. To say that the losses overlap is to claim that one or both full year results are wrongly stated. As a director, Peter Hutchison did however vote that these accounts were true and correct; Their auditor has agreed with this. There is no overlap, and they can be added together.

Adding the two losses gives $3.2m + $4.3m = $7.5 million. The real loss is, however, a lot more than $7.5 million because this figure does not include a number of disclosed and undisclosed subsidies, paid either directly or indirectly by Dunedin’s renters and ratepayers. The DCC has so far actively avoided providing the total of all the ongoing losses and costs of their stadium.

****

Big, real, ugly, stadium loss
Submitted by JimmyJones on Thu, 01/11/2012 – 11:57pm.

Mr Hutchison says that “DVL’s results were largely accounting losses – not cash – and expected”. In saying this he is implying that the year’s loss is mostly not a real loss. Our accounting system has evolved over a few thousand years to provide the most “real” measure of profit/loss. This is about the best we can do, and that means that both cash and non-cash items are included. If Mr Hutchison thinks he has a better way, he should write a book about it, but in the mean time he needs to stick to the standard NZIFRS method. His statement is in fact wrong, because most of DVL’s expenses are actually cash expenses and because the loss is a real, authentic, auditor certified loss. DVL’s finances are a sensitive area for the DCC, and Mr Hutchison should not be seen to be promoting any particular viewpoint.

Posted by Elizabeth Kerr

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