Vacation examines its development

Press, 30 June 1982, Page 24

Vacation examines its development

PA Auckland Vacation Hotels, Ltd, has launched a survey of all its operations and is assessing present market potential so that decisions can be taken “in . the light ofits altered circumstances." The chairman (Mr J. T. Sheffield) says that the aim is that decisions can be taken on the most profitable direction for the company, both now and in the future.

Writing in the annual report on present and future developments, Mr Sheffield says the first stage of the rebuilding of Vacation Rotorua has been completed and the 147 rooms opened for six months, have been closed temporarily to allow construction of the next stage. But plans for the renova-

tion of the Christchurch hotel, purchased by the company last financial year, are being reviewed.

“O'Connells Hotel is at present undergoing major refurbishing which, it is expected, will upgrade that type of market in Queenstown,” he said.

The "altered circumstances" of the group are the result of the sale by Alex Harvey Industries of its 51 per cent holding to Jit Poh Investments Pty, Ltd, and Tai Tak Securities of Singapore, which now hold 67.6 per cent of the capital. The annual report details the retirement of AHI nominees and names as new directors Messrs Ho Whye Chung (now joiint managing director) and Ho Sim . Guan, Miss Ho Chai Ling and Mr Ho Sim Keng, all of Singa-

pore, and Messrs F. H. Renouf and G. H. Datson, of Wellington. As reported. . Vacation Hotels earned a net $2,395,050 on revenue of $27,980,195 for the 17-months period to March 31. Mr Sheffield says that, in considering the results, it is necessary to remember that the figures include two peak summer periods. Although profits for the 12 months to October 31 w’ere well ahead of the previous corresponding period,. the operating results for the five months to March 31 were well below expectations. “They were severely hit by the general continual fall in inbound tourists during that period and the uncertainty of the world-wide economic climate, both of which have affected the industry as a whole,” he says. The report says the first year depreciation allowances on new hotel accommodation facilities opened during the period materially reduced the income tax which otherwise would have been payable.

The consolidated balance sheet shows shareholders’ funds increased to $13,840,917 (previously $10,044,287), with issued ordinary capital rising to 11,225,000 50c snares.

Current assets at March 31 stood at $4,236,318, compared with $2,104,315 at October 31, 1980. Current liabilities totalled $4,691,946 ($3,483,517).