Dunedin City Holdings Limited

Half Year Result to 31 December 2013

Dunedin (Friday, 21 February 2014) - The Dunedin City Holdings group is reporting an improved profit after tax and higher operating cashflows in its half year result, compared to the same period last year.

For the six months to 31 December 2013, total revenue decreased by 2%, to $122.6 million. However, revenue for continuing operations has increased 8%, from $110.4 million to $119.2 million.

The profit after tax has increased 9% to $8.7 million from $7.9 million for the same period last year.

Cashflows generated by the operations of the group were $2.4 million higher at $21.7 million for the six-month period. This factor, combined with the sale of surplus assets and less spending on capital items, has allowed the group to reduce its term borrowings by $19 million.

Dunedin City Holdings Limited Chairman Graham Crombie says, “It is pleasing to be able to report a continuation of the improvement in the financial performance of the group. In addition, there has been a conscious effort to improve the cashflow across the group and this has also paid off. This has resulted in a reduction in term borrowings.”

A better financial performance came from City Forests Limited as the prices received for logs have remained strong. This was also assisted by an improvement in the performance of Delta Utility Services Limited.

Aurora Energy Limited has been adversely affected by the mild winter last year. This had an impact on its operating revenue and surplus.

Taieri Gorge Railway Limited is performing slightly worse than at the same time last year. It continues to be impacted by a weak tourism market in the South Island. The cruise ship market is also weaker this year and the cancellation of a number of ships due to weather conditions has had an impact.

Dunedin International Airport Limited profit was down compared to last year. The reduction in airline capacity across both domestic and international services for the period had an impact on the aeronautical revenue of the company.

Dunedin Venues Limited and Dunedin Venues Management Limited do not form part of the Dunedin City Holdings reporting group. Their results, however, have also been released for the six-month period.

Dunedin Venues Ltd trading was very close to its result for the same period last year. For Dunedin Venues Management Ltd, revenue was up and the $475,000 loss was slightly less than last year.

ENDS

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