Business South has reported a loss of more than $500,000 for its first financial year as it dealt with "significant merger costs" and the effects of Covid-19.
The organisation was founded in October last year as the result of a merger between the Otago Chamber of Commerce and the Otago Southland Employers’ Association.
In its first annual report, it reported $2,670,445 in revenue, but expenses of $3,285,037, leaving a net loss of $574,230.
Between the funds distributed from the Otago Chamber of Commerce and the Otago Southland Employers’ Association, the hit left the organisation with an equity balance of $1,904,530.
In the notes on the financial statements, the report said the loss reflected "significant merger costs and the ongoing impacts of Covid".
The budget for 2023 showed a reduction in those costs and projected a return to a "more acceptable" financial result.
Management continued to look for opportunities to reduce costs and increase revenue, it said.
In the report, board chairman Neil Finn-House said adjusting to a post-Covid-19 world had been difficult for some of the organisation’s traditional areas of membership activity, such as training and events.
Now the challenges were starting to normalise and Business South was confident it was returning to a more predictable cadence in those areas.
Chief executive officer Mike Collins said the first year had been "extremely busy" with the completion of the merger.
The regional business partners team had actively supported 333 businesses across Otago.
It had worked with 1078 tourism businesses in the Queenstown Lakes District through the Tourism Communities Funds and allocated $16.5 million of Government funding to help businesses navigate the effects of Covid-19.
