Thursday 17th February 2011
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Hotel owner and operator Millennium & Copthorne New Zealand reported an after tax loss of $10.1 million for the year ending December 2010.
It also reported a total revenue of $115.9 million.
In 2009, the group made a $12.4 million profit and its total revenue was $108 million.
The company put the loss down to the Government's change in tax policy, which stopped companies claiming depreciation on buildings.
"It has had a disproportionate effect on our results given that we believe it is better to own our portfolio than to rely on leases or other similar arrangements," chairman Hong Ren Wong said.
Wong said the group's investment in China had recorded a profit for the financial year and had agreed on a settlement with its former joint venture partner Cheung Ping Kwong.
Cheung is the founder and former chief executive of the Idea Valley group.
Last year, Cheung was ousted from the group after seizing control of the company seals and making unauthorised sales.
In China, the affixing of the company seal, together with the legal representative's signature, represents the full authority of the company.
However, the settlement meant Cheung no longer held any interest in Idea Valley and most of the losses and provisions could be written back, he said.
The group recorded a $0.3 million net loss on its Chinese investment, which was a significant improvement on its $5.3 million loss in June 2010.
"We have retained control of valuable assets that are critical to our future success and we remain committed to our investment," he said.
Wong said Idea Valley could now move on and continue developing its portfolio and deliver positive returns to shareholders.
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