Friday, 29 March 2024

Announcement

FLLYR: MCK: MCK: 2016 Results Announcement

17 Feb 2017 14:22NZX
MCK provides its audited financial statements for the period ended 31
December 2016, Chairman''s Review and Press Release, the text of which follows
below:

***

CHAIRMAN''S REVIEW

Financial Performance & Financial Position

The Directors of Millennium & Copthorne Hotels New Zealand Limited ("MCK")
are pleased to report a profit attributable to owners of the parent of $40.4
million (2015: $21.7 million) for the year ended 31 December 2016.
MCK''s revenue for the year increased to $172.0 million (2015: $136.5 million)
and profit before tax and non-controlling interests totalled $70.5 million
(2015: $40.0 million). The increases in revenue and profit from 2015
reflects both positive trading conditions in the tourism industry in New
Zealand and ongoing positive sales activity from majority-owned CDL
Investments New Zealand Limited.
Shareholders'' funds excluding non-controlling interests as at 31 December
2016 totalled $489.1 million (2015: $389.3 million). Total assets at 31
December 2016 were $713.9 million (2015: $590.0 million). Net asset backing
(with land and building revaluations and before distributions) as at 31
December 2016 has increased to 308.91 cents per share (2015: 245.9 cents per
share).
Earnings per share increased to 25.56 cents per share (2015: 13.70 cents per
share).

New Zealand Hotel Operations

Reflecting the current trading environment, revenue for the hotels increased
by 9.9% to $94.6 million (2015: $86.1 million) and revenue per available room
(RevPAR) increased by 14.8% over 2015. Occupancy also increased to 80.7% in
2016 (2015: 77.1%). These increases reflect better sales and marketing
initiatives, profit conversions and continued productivity improvements
across all business units.
Of the owned / operated hotels, Copthorne Hotel & Resort Queenstown Lakefront
and Millennium Queenstown were notable for their performance in 2016.  The
management lease for Grand Millennium Auckland commenced in September 2016
and is proceeding in line with expectations.
As announced in July 2015, Copthorne Hotel Auckland Harbourcity was closed
for a refurbishment programme and is expected to be completed by the second
quarter of 2017. The hotel will be extensively refurbished and its operations
will be appropriately repositioned as the MSocial Auckland.

Canterbury Update

MCK''s remaining insurance claims for its chattels and property relating to
Millennium Hotel Christchurch were settled during the year. MCK is actively
considering development and rebuild options for its former Copthorne Hotel
Christchurch Central site on Colombo Street with a view to commencing works
in the medium term.

CDL Investments New Zealand Limited ("CDLI")
CDLI continued to perform strongly and announced a record operating profit
after tax for the year ended 31 December 2016 of $27.0 million (2015: $17.5
million).  CDLI''s sections continue to be in high demand particularly in
Auckland and Canterbury.
As a result CDLI increased its ordinary dividend to 3.0 cents per share
(2015: 2.2 cents per share).  MCK''s stake in CDLI reduced slightly to 66.70%
as a result of MCK taking its dividend in cash and not shares.

Australia Update

In Australia, the occupancy at the Zenith residences was high at 98% while
the litigation affecting a wholly-owned subsidiary was settled out of court
during the year.
Dividend Announcement

Reflecting its positive results in 2016, MCK has resolved to declare and pay
all shareholders a fully imputed dividend of 5.0 cents per share (2015: 2.8
cents per share) which represents a 78.6% increase over the 2015 dividend.
The Board has chosen to increase MCK''s dividend once more as it remains
confident as to MCK''s ability to deliver consistent results and returns from
its business units.
The dividend, payable to all shareholders, will be paid on 19 May 2017. The
record date will be 12 May 2017.
Outlook

2017 will be another exciting year for MCK as it will mark the opening of
MSocial Auckland in the second half after extensive refurbishment.  The
financial impact of having Grand Millennium Auckland for a full year will
also be reflected in our results.
We expect to benefit from the growing tourism interest in New Zealand and the
Lions Rugby Tour.  We also expect strong sales activity at CDL Investments to
continue which will also assist our profitability.
Given all of these factors, we aim to exceed our 2016 trading results in
2017.
Management and staff

On behalf of the Board, I wish to thank the Company''s management and staff
for their hard work and commitment to the Company during the last twelve
months and for delivering another exceptional result.

Wong Hong Ren
Chairman
17 February 2017

***MEDIA RELEASE***

MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND
REPORTS INCREASED 2016 REVENUES AND PROFIT

Millennium & Copthorne Hotels New Zealand Limited (NZX: MCK) today reported
its preliminary results for the year ended 31 December 2016 and announced a
profit after tax and attributable to owners of the parent of $40.4 million
(2015: $21.7 million) on total revenue of $ 172.0 million (2015: $ 136.5
million).
Despite the closure of the Copthorne Hotel Auckland, Harbour City for its
refurbishment, MCK''s hotel operations grew both its topline revenue and
profit. The management lease of Grand Millennium Auckland also commenced in
September 2016. The strong sales at MCK''s land development subsidiary CDL
Investments New Zealand Limited contributed significantly to MCK''s results.
MCK Chairman Mr. HR Wong said that the Board was pleased with the continued
improvement in the hotel operational efficiencies by its staff and the
extension of MCK''s product range.     .
"Our continued focus on our core businesses and the efficiencies we have been
making in both areas are producing results for our shareholders", he said.
MCK has resolved to declare an increased and fully imputed dividend of 5.0
cents per share for 2016 to all shareholders (2015: 2.8 cents per share).
The dividend reflects the continued positive operational profitability of the
Company. With the reopening of Copthorne Hotel, Auckland Harbour City as the
MSocial Auckland in the second half of 2017 and the full year operations of
the Grand Millennium Auckland, the Board is confident in exceeding its 2016
trading results in 2017. The dividend will be paid to shareholders on 19 May
2017. The record date will be 12 May 2017.
Summary of results:
o Profit after tax and non-controlling interests   $40.4 million  (2015:
$21.7m)
o Profit before tax and non-controlling interests   $70.5 million  (2015:
$40.0m)
o Group revenue      $172.0 million  (2015: $136.5m)
o Shareholders'' funds excluding non-controlling interests  $489.1 million
(2015: $389.3am)
o Total assets      $713.9 million  (2015: $590.0m)
o Earnings per share (cents per share)  25.56 cents  (2015: 13.70 cents)

ENDS
Issued by Millennium & Copthorne Hotels New Zealand Limited
Enquiries to:
B K Chiu
Managing Director
(09) 353 5058
End CA:00296964 For:MCK    Type:FLLYR      Time:2017-02-17 14:22:25
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