Whitestone chairman of directors John Walker yesterday announced a $100,000 contribution to the $9.7 million redevelopment and restoration of the Opera House, in addition to a $300,000 tax-free subvention payment it would make from its profits to the council.
The contribution is for naming rights of an area within the Opera House, one of several naming rights the council hopes to sell as the project nears completion and its official reopening in February next year.
Waitaki Major Alex Familton said the company had had a significant financial turnaround in the last financial year, a notable performance.
The "cherry on the top" was the company's contribution to the Opera House project.
In the 2007-08 financial year ending June 30, the company had a major turnaround in its fortunes from the previous year.
It recorded a pre-tax profit of $933,158, compared with $284,754 in the 2006-07 financial year.
That was from turnover of $20.3 million, compared with $19.625 million the previous financial year.
Mr Walker told the council meeting yesterday turnover had increased by 47% over the past six years and described the before-tax profit as "very favourable" and a "very significant turnaround" for the company.
That had been achieved by a reduction in overheads, including company amalgamations, staff changes, reallocation of work positions and training targeted at needs.
The company would continue to focus on costs, including targeting training and offering cadetship training for young people.
Other measures included enhancing its workshop operations and reducing radio telephone costs.
Asked if the company could maintain its present turnover of $20 million in a deteriorating economy, Mr Walker said Whitestone had some long-term contracts and tenders, but some of its business depended on new contracts and businesses.
It was difficult to predict the company could maintain its current business.
The workload for the start of the current financial year had been moderate, indicative of the present economic climate, but the company was continuing to reduce overheads and improve contracts performance to retain a competitive edge.
It continued to be committed to the area, employing 165 people, of which about 120 were based in Oamaru, and distributing $32,385 in direct sponsorships.
Operating expenses totalled $19.25 million, compared with $19.21 million in the 2006-07 financial year.
After income tax and the subvention payment, the company had a profit of $533,577 compared with $110,7735 in 2006-07 when no payment was made to the council.
Mr Walker said retained profits would be used to reduce debt and pursue business opportunities to stimulate future profitability.
