Millennium and Copthorne hotels profit up 5.3%

By NZPA

Friday 16th February 2007

Productivity gains helped Millennium and Copthorne Hotels lift net profit 5.3% to $26.9 million in a difficult year to December.

Managing director BK Chiu said the results reflected efforts made by the company through productivity gains, cost savings and value enhancements across the group.

The year was difficult in many respects, with falls in visitor numbers from some key markets such as Japan, he said.
Chiu expected 2007 to be another challenging year.

"Our competition is increasing across all of our markets, visitor numbers remain static and new inventory is being introduced in the main centres."

The rise in net profit to $26.9m from $25.6m in 2005 was achieved on revenue up 23% to $187.3m.

Operating profit before tax and minorities was down 6.9% to $47.3m from $50.8m.

A fully imputed ordinary dividend of 2.5 cents per share -- an increase of 0.4 cents or 19% on the previous year -- would be paid.

The company owns, leases, manages and franchises a portfolio of hotels across New Zealand and trades under the Millennium, Copthorne and Kingsgate brands.

During 2006, it added another franchised property, Copthorne Hotel Marlborough, to its network bringing the total number of hotels within the group to 32.

Millennium and Copthorne Hotels shares were up 2c in mid-afternoon trade to 72c, its highest level in the past year.

Comments from our readers

No comments yet