Arrowtown’s classy Millbrook Resort has suffered its second consecutive annual trading loss.
Resort result: Millbrook Resort near Arrowtown is financially stable with net assets of $15.2 million
Latest financials obtained by Mountain Scene show the prestigious residential golf course, hotel and spa complex has returned an after-tax loss of $854,000 for the year ended September 2011.
This compares with 2010’s after-tax loss of $1.7 million, with the red ink that year being down to a $4m tax bill arising from Government changes to property depreciation.
By contrast, Millbrook booked a $12m profit after tax in 2009.
These latest results show total revenue down $1.1m to $25.4m, although property sales aren’t shown separately from golf and accommodation income.
Millbrook recently announced the release of its 12-home Taramea Square development, with house and land prices pitched at $1.5m to $2m.
It’s likely these and other development costs have had a negative timing effect on the latest results, with profits from consequent property sales set to flow through in the years to come.
Staff costs have risen by more than $400,000 to $7.9m, with the top six unnamed employees receiving between $100,000 and $300,000.
Borrowings total $34m – BNZ is owed $7.2m – but the loans are well covered by total assets of $63m.
Its comparatively small loss aside, Millbrook is in a financially stable state with net assets of $15.2m.
The resort was opened in 1993 and remains in the hands of its founders, the Ishii family of Japan.
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