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Millennium & Copthorne Hotels New Zealand Limited (NZ: MCK) 2020 Results Announcement

Wednesday 17th February 2021

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MCK reports that, for the year ended 31 December 2020, the company recorded a profit attributable to owners of the parent of $46.0 million (2019: $49.7 million).

Financial Performance & Financial Position

Our 2020 results are almost entirely due to the performance of our property development operations through our majority-owned subsidiary CDL Investments New Zealand Limited which had a very positive year despite the difficulties caused by COVID-19 and sales of our apartment units in Sydney, Australia. Our hotel operations did perform better than anticipated and recorded a small profit before tax of $1.9 million (2019: $33.5 million). All of this was reflected in our earnings per share which decreased to 29.05 cents per share (2019: 31.39 cents per share).

Our 2020 revenue totaled $172.00 million (2019: $229.7 million) which was driven by CDL Investments and our Australian subsidiaries. As detailed in the 2020 Interim Report, we also recognized a one-off, non-cash tax credit of $20.06 million from the Government’s COVID-19 Business Continuity Package. Our shareholders’ funds excluding non-controlling interests was $743.6 million (2019: $715.3 million). We saw a decrease in our total assets of $987.9 million (2019: $1,008.2 million) with net asset backing (with land and building revaluations and before distributions) increasing slightly to 469.70 cents per share (2019: 451.78 cents per share).

Dividend Announcement

While the company has made a profit, MCK’s Board has resolved not to declare a dividend for the 2020 year and will instead deploy the funds for refurbishment and reinvestment in its hotels. This will also allow the company to ensure it has sufficient capital reserves to continue to trade as well as optimize its financial resources in its recovery runway objectives.

Outlook

This summer, some of our hotels are seeing significantly less occupancy compared to this time a year ago. That difference will be very significant to our 2021 results as the trading results in the first three months of 2020 were similar to 2019 and was reflected in the small profit that we announced in our 2020 interim results. Our property development activities are expected to perform positively and will again be the main driver for group profit this year.

Please see the links below for details:

MCK FY2020 Results Announcement

MCK FY2020 Chairman's Review

MCK FY2020 Media Release

MCK FY2020 Audited Financial Statements

Source: Millennium & Copthorne Hotels New Zealand Limited



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