Tough year for tourism arm

Weather conditions stopped operations at Queenstown's Shotover Jet during the two busiest weeks...
Weather conditions stopped operations at Queenstown's Shotover Jet during the two busiest weeks of the year. Photo supplied.
Environmental challenges and a generally ''tough'' market has seen Ngai Tahu Tourism experience one of its toughest operating years ever, with earnings nearly halving from the previous financial year.

In April, the Franz Josef glacier retreated to the point where walking access to the terminal face was no longer safe, while weather conditions in Queenstown halted operations at Shotover Jet on the two busiest weeks of the year.

Those events reflected the risks involved with operating in the natural environment and, combined, had a ''significant effect'' on Ngai Tahu Tourism's bottom line, with operating ebit down from $6.5 million to $3.5 million for the year ended June.

But, in releasing Ngai Tahu Holdings Corporation's results, chairman Trevor Burt said the forecast for tourism was looking much improved.

Consolidating the growth achieved at Rainbow Springs in Rotorua, and reshaping its West Coast businesses would remain the critical priorities for Ngai Tahu Tourism over the coming year.

While short-term measures were in place to help mitigate the financial impact at Franz Josef, a longer-term strategy was required for recovery.

Ngai Tahu Holdings Corporation has reported an operating profit of $49.2 million, down $5.9 million on the previous corresponding period.

Reported profit for the year was $77.9 million, down $17.8 million on the pcp.

While the figures were down, total returns including appreciation in the corporation's listed investments, such as Ryman, were up $92 million to a record $181.6 million.

The 2012 operating surplus also included a one-off benefit of $3.8 million from the sale of forestry leases and that year's net profit included a $27 million gain on the sale of Ryman shares, the corporation said.

Mr Burt said the commercial highlights included the ''rise and rise'' of Ryman Healthcare, the significant progress being made on residential developments and Ngai Tahu Seafood delivering its fourth record consecutive result.

Ryman Healthcare continued to be a ''jewel in the crown'' of the NTHC group investment portfolio.

Share prices boomed over the past year, almost doubling in value, with its 6% shareholding worth $191 million at financial year-end.

Ngai Tahu Seafood had a subsidiary operating ebit of $17.5 million, up from $17.3 million for the pcp, which was particularly pleasing given the tougher market in China and the ongoing strengthening of the New Zealand dollar.

Ngai Tahu Property reported a year-end operating ebit of $38.2 million, down slightly on last year's $38.6 million.

Mr Burt said NTHC was well positioned for growth with a very strong balance sheet and its focus was firmly on exploring new investment potential both within and beyond its existing portfolio.

It has committed $110 million over the next three years to developing its rural land in North Canterbury and the West Coast and recently announced an interest in investing in the Ruataniwha irrigation scheme in Hawkes Bay.

NTHC's distribution to Te Runanga o Ngai Tahu would be $28.25 million. Total assets under management by the combined group increased by $222.64 million to $1.03 billion.

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