Licensing trust net profit slips

17:00, Aug 15 2014

The Invercargill Licensing Trust has posted a net profit of $10.362 million for the 2013-14 year.

The annual report, released this week, says the group produced a solid performance even though the figure represents a decline of 5.2 per cent on last year.

Last year's profit was $10.925m. The trust's pre-tax operating surplus, before grants, was $7.198m, which was down 4.2 per cent on last year.

Trust general manager Greg Mulvey said he was pleased with the year's result, attributing the decline to a small decrease in sales and an increase in operating expenses, which was related to the inflation rate.

The trust exceeded budget expectations but it was a solid result for the year, especially because of the challenging economic environment.

The report says the aftermath of the Christchurch earthquakes continued to impact negatively on trust's operations with a reduction in visitor numbers to the region.

The trust's financial position remained strong with a low level of term debt and total assets of $85.7m including substantial cash reserves available for future developments to benefit the city, the report says.

The ILT Foundation posted a profit of $4.282m, down from $4.648m last year.

Mulvey attributed the decrease to a reduction in gaming income, which was a national trend.

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The Southland Times