Skyline to pay 'prudent' dividend

MARTA STEEMAN
Last updated 14:49 10/07/2014

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One of the country's largest tourism businesses, Skyline Enterprises, is distributing $12.6 million of profits to its shareholders, the same as the year before.

The company said its underlying trading result was much the same as the year. It posted a trading profit before tax of $52.8m for the year to March 31, 2014, boosted by some unusual items.

Removing revaluation, amortisation, tax deferred on building depreciation and insurance money resulted in $25.3m of earnings compared with $26.2m the year before, Skyline said.

The company said significant differences between the years was due to an increase in commercial property values of $7.8m, insurance proceeds from the Christchurch Casino of $10.9m and a reduction in writeoff of goodwill as well as full ownership of Christchurch Casino.

The Queenstown division of the business, which includes the gondola and luge activities, enjoyed increased trading with gondola numbers above last year's all-time high. The international luge business was about the same as the previous year.

"With trading results on par with last year, the continued investment in offshore luge and reinvestment in our established businesses, directors have adopted a prudent approach in terms of the dividend payment," new chairman Mark Quickfall said.

It declared a 37 cents a share dividend, the same as the previous year.

Skyline shares traded at $11.50 today on the Unlisted exchange. The company has about 800 shareholders.

The company said the Skyline luge operation at Mont Tremblant, Canada, achieved an improved result but the Calgary luge operation experienced issues with consenting and operations which had been resolved and a better result was forecast.

The consenting of another luge operation in Korea was progressing with an opening planned for next year.

Patronage at Christchurch Casino was still below pre-earthquake numbers but improving. Repairs to roads and other infrastructure had at times made access to the casino difficult.

But the casino was in the same precinct as the new restaurants, bars and other hospitality being established in Victoria St, Christchurch.

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