The ILT held Group its meeting on Tuesday, providing an overview of its financial performance for the year ending March 31, 2023, and presenting the final audited accounts for the years 2020, 2021, and 2022.
With challenges including the pandemic, staff shortages, rising inflation and increasing costs, the overall reported financial performance had also been impacted by the impairment of assets, including The Langlands.
This was a direct result of audit requirements, and reflected revaluations that were based on the impact of Covid-19.
The impact of this had to be spread across the past four financial years.
This resulted in the community owned organisation posting a surplus, after tax and donations, of over $1.58 million for the financial year ended March 31, 2023.
For the year ending March 31, 2021, the Group posted a surplus of $953,000 after accounting for taxes, donation and the impairment. The year ending March 31, 2022, and the final results for the year ending March 31, 2020, both showed deficits of $6.9m and just over $6m, respectively.
ILT Group chairman Paddy O’Brien acknowledged that on face value these results might look concerning, but emphasised the group was still in a very strong financial position and producing industry leading results.
“The impairment of some of our hospitality assets, including The Langlands, is not unusual. Effectively, this is a book entry and does not change our cash position. In fact, it will improve our overall results moving forward as the impairment will actually result in a lower depreciation cost.”
Mr O’Brien highlighted the organisation’s contribution to the community during this period.
“Despite the challenging circumstances, ILT has produced a solid financial performance and most importantly, we have continued to grow our community donations back to pre-covid levels. This funding supports a wide range of community groups and initiatives.
“Over the last four years we have returned over $29 million, which is a considerable amount given the remarkable economic climate we have traded under,” he said.
ILT chief executive Chris Ramsay believed the result demonstrated the group’s financial resilience.
“This has been the most disruptive period in our industry’s history, but we’ve successfully navigated it, while continuing to invest in our businesses and our people. The Langlands is one example of us investing in the future of Invercargill and looking for opportunities to grow our community contributions,” Mr Ramsay said.
“We have a ‘people first’ approach that ensures competitive remuneration and creates better outcomes for our ILT family of over 670. Earlier this year we were pleased to be able to recognise their efforts through our first ever staff-wide bonus.”
