Half-year results for DCHL - the parent company for six council-controlled companies - released yesterday showed group revenue to December 31 increasing 10.9% to $110.5 million compared to the corresponding period to the end of 2007, while the group's after-tax profit declined 30% from $2.6 million to $1.8 million.
The figures included an interim payment of a dividend plus cash - interest paid to council in advance - of $6.6 million for the six-month period.
DCHL chief executive Bevan Dodds said the group remained on track to meet its full-year forecast payment of $19.8 million in dividends and cash to the council when results were released later this year. Most payments were made towards the end of the 12-month cycle.
"You have got to make it [money] before you pay it," Mr Dodds said.
Releasing yesterday's half-year results, DCHL chairman Paul Hudson said he expected dividend payments would continue as scheduled in the council's draft long-term council community plan (LTCCP), despite the growing pressure of the worsening economic climate.
In January, council chief executive Jim Harland warned annual increases in the amount paid by the DCHL to the council, to help to ease the rates burden, would have to cease in 2009-10, to avoid the risk of cashflow and liquidity problems.
The 2009-10 increase would see the payments peak at $23.1 million, remain the same for 2010-11, then reduce by $5 million per annum from 2011-12 to service stadium debt, should the project proceed.
However, Mr Hudson yesterday said the group of six companies - Citibus, Aurora Energy, Delta Utility Services, City Forests, Dunedin International Airport and the Taieri Gorge Railway - was "not stretched".
"We are not stretched, but about where we should be at the moment."
The companies had never failed to respond to a council request, and although the economic climate emphasised the need for financial responsibility, "my view is the holding company and council companies are put there to service the council".
Ratepayers "should be happy" with the performance of the companies and the dividend over the past six months.
"The council companies insulate the ratepayers from rate increases that are seen in other areas. If you look at our average rates it's very much lower than most other similar cities, and a bit of that is due to the holding company and the group of council companies."
