Arrowtown’s classy Millbrook Resort has suffered its second consecutive annual trading loss.
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.