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PORT MARLBOROUGH 2010 ANNUAL RESULT
14 October 2010
Adverse property revaluations and other non-cash items have significantly impacted Port Marlborough’s 2009/10 financial result with the port company reporting an after-tax loss of $9.36 million for the year ending 30 June 2010; 20% down on the previous year.
The reported loss includes a $11.37 million write down of asset values and a deferred tax liability of $2.35 million relating to the removal of tax depreciation on buildings. Adjusting for non-cash items, Port Marlborough achieved a pre-tax operating surplus of $5.53 million on total revenues of $17.8 million.
Chairman Ed Johnson said that Port Marlborough’s trading result was broadly in line with expectations and reflected solid operating performance in the challenging business conditions that prevailed throughout the period. However, our reported result also needed to include several non-cash adjustments:
“The accounting treatments imposed by International Financial Reporting Standards (IFRS) require that revaluations of the Company’s property portfolio along with other non-cash items must now be recorded in the Income Statement rather than as movements in Balance Sheet reserves,” he said. “Our required revaluations in the 2009/10 year included all port company land and buildings together with major wharf infrastructure, and along with the impact of recent changes in tax depreciation on buildings, substantially underpinned the reported loss.”
Mr Johnson said that given the recessionary trading environment the port company did well to achieve operational targets. Revenues were boosted by a significant increase in log volumes through Shakespeare Bay, which climbed 50% to 378,104 JAS in the 2009/10 year, and show promising signs of producing record volumes in the current year.
In total, 406, 238 tonnes of bulk cargo moved through Port Marlborough’s facilities during the year, along with 2.265 million lane metres of rail and commercial vehicle freight and in excess of one million ferry and cruise ship passengers.
As signaled in the previous financial year, a special dividend of $7.5 million was paid to the port company’s shareholder MDC Holdings Ltd as the balance of the $10 million special dividend committed for payment in the 2009/2010 financial years. Since establishment in 1988 to date Port Marlborough has paid the shareholder, a wholly-owned subsidiary of the Marlborough District Council, dividends totalling $51.8 million.
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