The Oamaru Licensing Trust is taking steps to reverse the loss suffered in the past financial year, largely due to having one of its major outlets closed during a $3 million redevelopment.
In the 2008-09 financial year ending March 31, the trust had an after-tax $282,425 loss, compared with a profit of $324,474 in the previous financial year.
Trust president Ali Brosnan yesterday said one of the major contributors to the loss was the closure of the Northside complex in north Oamaru while it was redeveloped as the Northstar complex, containing a motel, restaurant, bar and bottle store.
Mr Brosnan also said the 2007-08 financial year included the sale of the Waihemo Lodge in Palmerston, which had inflated the profit.
"We started behind the eight ball [in the 2008-09 financial year] with the closure for more than three months of the Northside, which had an effect on turnover," he said.
Mr Brosnan said the trust had gone "back to the nuts and bolts to become leaner and meaner" and reduce costs.
Northstar was now fully operating and changes at the Kingsgate Brydone Hotel meant income was ahead of budget so far this financial year.
He predicted this financial year would be equally challenging, but the board remained committed to ensuring the trust and its businesses continued to innovate and improve.
Highlights of the 2008-09 financial year included the trust taking back the lease contract of the Fahrenheit bar, the agreement between the Brydone Hotel and the redeveloped Oamaru Opera House, increased sales at the Oast House off-licence, and the redevelopment of the Northstar.
Operating revenue in 2008-09 was $11,020, 354, down from $11,668,371 in the previous financial year.
The trust reduced its operating expenditure from $11,258,291 in 2007-08 to $11,122,324 in 2008-09.
Liabilities increased from $2,036,018 in the 2007-08 financial year to almost $5 million, mainly due to a loan for the Northstar redevelopment.
During the past financial year the trust made grants to community organisations totalling $374,720 from its charitable foundation and the Lion Foundation, proceeds from jointly operated gaming machines.
