MT COOK EXPECTS GOOD YEAR

Press, Volume CVIII, Issue 31782, 12 September 1968, Page 19

MT COOK EXPECTS GOOD YEAR

Devaluation increased revenue for Mount Cook and Southern Lakes Tourist Company, Ltd, Timaru, in the latest year but the real benefit will not be felt until the current year, says the chairman (Mr H. R. Wigley) in his annual report.

Bookings ahead are very good for all services and the current year is expected to be a good one. However, the establishment of the Hawker Siddeley 748 service this year will be costly and It may be some time before its profitability will reflect in the accounts. As announced, the profit fell $21,507, or 38.3 per cent,

to $34,523 in the year to March 31.

The dividend, maintained at 9 per cent, requires $5998 more at $29,982 because of last year’s one-for-two cash issue which qualifies for half the dividend.

The earning rate on average shareholders’ funds falls from 15.0 to 7.5 per cent, while the rate on average capital is down from 21.1 to 10.5 per cent.

Total revenue rose $115,893 to $1,158,663 but operating expenses rose $124,655 to $991,767. The depreciation provision is up $39,679 to $97,651 while that for tax Is down $34,125 to $10,283. That the substantial losses suffered by the company up to the end of September were more than recovered by the end of the financial year shows that the tourist industry is now enjoying really solid growth and that the company is sharing In this, says Mr Wigley. Only the continuous steady growth of overseas tourist traffic has allowed the company to finish the year achieving the results which allows a steady 9 per cent dividend.

Shareholders’ funds are $140,362 higher at $532,334, while capital, all ordinary, is up $133,255 to $399,753. Fixed assets are up $182,963 to $798,139, while the working capital deficit is up $41,845 to $129,547. Bank overdraft is up $94,134 to $132,584.