Millbrook Resort posts $1.7m loss for 2010

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The 2010 financial year was a forgettable one for Arrowtown’s picturesque Millbrook Resort. 

The Japanese-owned residential golf course resort, hotel and spa has posted a red-ink result of negative $1.7 million after tax, compared with $12 m of after-tax profit the previous year. 

Sales plummeted $9.2m or 26 per cent to $26.3m. 

And like other entities with heavy property investments, depreciation changes resulted in an additional $4m tax bill. 

Although the figures are not broken out, much of Millbrook’s sales decline is likely to have come from a drop in property deals. 

Selling expensive villas and sections has always been Millbrook’s core business – despite the swanky golf resort and spa wrapped around the picturesque land. 

Total staff costs rose steeply from $6.3m to $7.4m, including five “key management personnel” who are each paid between $100,000 and $300,000. 

Millbrook also suffered a loss in its 2008 financial year, albeit smaller at $212,000 after tax. 

Despite this latest setback, Millbrook remains financially strong, thanks to the long-term ownership of Japan’s Ishii family. 

Although borrowings have risen in this latest fiscal year, net assets total $16m. 

Millbrook’s 2011 calendar year has started well. 

The resort announced this week that it’s enjoyed almost 100 per cent occupancy since New Year, “largely due to high-end incentive market visitors from the United States”, Millbrook boss David Onions says.