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.