Millennium and Copthorne profit drops

MICHAEL FOREMAN
Last updated 14:51 14/02/2014

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Listed hotels company Millennium & Copthorne Hotels New Zealand has reported a profit of $32.2 million for the year ended December 31, down from $50.7m in the prior year.

Revenue grew to $123.4m from $116.5m in 2012.

Millennium managing director B K Chiu said the fall in profit reflected the difference between one-off items recorded in 2012 mainly due to the Canterbury earthquake. In 2012, gains from one-off items totalled $19m, including an $18.4m gain from the settlement of material damage insurance claims relating to Copthorne Hotel Christchurch Central.

"In 2013, we were pleased to see progress in increasing our operating hotels' revenue and their revenue per available room performance," Chiu said. "We also benefited from strong contributions from CDL Investments reflecting increased sales and confidence in the local property market and we also booked profits from our investment in China through First Sponsor Capital," he said.

Millennium received $13.4m from its 67 per cent-owned subsidiary CDL Investments while First Sponsor contributed $9.8m from sale of land and residential developments.

A fully imputed dividend of 1.2 cents per share will be paid to shareholders on May 16 with a record date of May 9.

Millennium also announced it intends to undertake a capital raising to meet a capital call from its 34 per cent-owned subsidiary First Sponsor Capital. Millennium's share of the call will be about $60m as it intends to maintain its current percentage shareholding in First Sponsor Capital, the company said.

Chiu said that with New Zealand economic indicators pointing to growth over the medium term, Millennium must ensure that it can take full advantage of increased business activity.

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- Fairfax Media

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