Trust profit in line with forecast

SHARE
Ashburton Licensing Trust plans to invest more than $1million into the Tinwald Tavern complex.

By Mick Jensen

Ashburton Licensing Trust (ALT) will announce a bottom line profit of $826,618 when it holds its 70th annual general meeting on August 29.

That figure has been boosted by a positive property revaluation at Hotel Ashburton and if stripped out gives a normalised profit of $547,000, which represents a like for like increase of $45,000 compared with last year.

The profit figure was in line with projections calculated after ALT made the decision to restructure in 2016, said departing ALT president Fay Watson.

Mrs Watson, who has a 30 year association with ALT, including nine as a board member and three as chairman, said the trust continued to be well placed for future growth that would offer long-term support to the Mid Canterbury community.

It had a very strong balance sheet, a key to securing any business’ future, and was “in a good place”.

Cash and Cash Equivalents dropped $922,000 in the 2018/19 financial year, but the outflow made up part of the $1.98m spent on growing our investment base.

Cash inflow from operating activities was $678,000.

Other key achievements over the year, said Mrs Watson, were the $67,000 distributed to community groups, the $1.5m distributed in partnership with the Lion Foundation and the reduction of loans on Somerset House.

A project that would significantly hit the 2020 result would be an $1m plus investment into roofing and other repairs and work at the Tinwald Tavern complex, said Mrs Watson.

The one-off hit would, however, be a positive reinvestment in the property.

“Property maintenance over the next three or four years will be at a lower level than 2020, but still on the high side. After that the board expects maintenance costs to return to a normalised level.”

Current forecast data from ALT shows that it expects profits generated by Somerset House (after debt on the building has been reduced) to be distributed into the community from 2023. That could potentially generate up to $500,00 each year in time.

ALT expects to formally reconstitute as a community trust rather than a licensing trust at the end of the year, with its new name to be Braided Rivers Community Trust.

ALT will hold its annual general meeting at 5.30 pm on August 29 at the Devon Tavern.