Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Millennium & Copthorne profit falls, plans to raise $60M

Millennium & Copthorne profit declines, plans $60 million capital raising for Chinese development

By Suze Metherell

Feb. 14 (BusinessDesk) – Millennium & Copthorne Hotels New Zealand, which operates 22 hotels across the country, reported a 37 percent decline in 2013 profit, reflecting one-time earthquake related gains in the year earlier.

Net profit fell to $32.2 million in the 12 months ended Dec. 31, from $50.7 million a year earlier, the Auckland-based company said in a statement. The hotelier gained a one-time insurance payment of $18.4 million in 2012 for its Copthorne Hotel destroyed by the Canterbury earthquake and $11.3 million in business interruption insurance. It had $4.2 million in earthquake insurance payments in 2013.

Millennium & Copthorne, 70-percent owned by the UK-based global hotel chain, has development interests in New Zealand, Australia and China. The company expects to detail plans to tap shareholders for $60 million in funds later this month to help fund further development in Chengdu, Sichuan Province, China, it said.

In 2013, the hotelier received $13.4 million from its 67 percent share of listed property development company CDL Investments New Zealand, and $9.8 million from its 34 percent stake in Chinese property development company First Sponsor Capital.

In Chengdu, First Sponsor in 2013 completed the commercial component of its Cityspring project, opened the first phase of the 196-room M Hotel Chengdu managed by the Millennium & Copthorne group, progressed sales of the Millennium Waterfront residential and auxiliary retail commercial units, and started construction of a Millennium-branded hotel with convention facilities.

In 2013, First Sponsor exited most of its investments in Guangdong province following a crisis in 2010 when former executive Cheung Ping Kwong was sacked after making unauthorised asset sales. The company is now looking at new property development opportunities in Dongguan, it said.

Meantime, Auckland-based CDL in 2013 increased its annual net profit 44 percent to $13.4 million, reflecting gains in its development portfolio. CDL sold 202 sections in 2013, up from 123 in 2012, 77 in 2011 and 54 in 2010. The value of its land increased 12 percent to $177.5 million.

Millennium & Copthorne will pay a dividend of 1.2 cents a share on May 16, compared with an ordinary dividend of 1.2 cents and a special dividend of 1.2 cents the year earlier. CDL increased its dividend per share to 2 cents from 1.7 cents the year earlier.

Shares in Millennium & Copthorne last traded at 66 cents on xx. CDL added 2 cents to 3.5 cents after one trade.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Prefu Roundup: Forecasts Revised, Surplus Intact

The National government heads into the election with its Budget surplus target broadly intact, delivering a set of economic and fiscal forecasts marginally revised from May to reflect weaker commodity prices and a lower tax take. More>>

ALSO:

Convention Centre: Major New SkyCity Hotel And Laneway For Auckland

Today SKYCITY Entertainment Group Limited revealed plans to build a new hotel and pedestrian laneway of bars, restaurants and boutique shopping on land it owns in the Nelson and Hobson Streets block, expanding the SKYCITY Entertainment Precinct. More>>

ALSO:

Igniting The Spark: Bringing The Digital Enabler To Life

Changing a name is, relatively speaking, the easy part of a re-invention. Changing a culture, getting all the ducks in a row, turning yourself inside-out to become customer-inspired is a much bigger challenge. More>>

ALSO:

Ebola And NZ: Targeted Screening At Airport But Risk Low

The risk of any cases of Ebola in New Zealand remains very low, but health and border authorities are well prepared... anyone arriving in New Zealand who in the last three weeks has visited countries affected will be screened for symptoms of the disease. More>>

ALSO:

Scoop Business: Brewer Seeking Crowd-Funding Cancels Shareholders’ Dividends

Shareholders in Renaissance Brewing company, the first business to seek equity through crowd-funding in New Zealand, have cancelled their claim on $147,000 of accumulated earnings “to make Renaissance a more attractive investment opportunity.” More>>

ALSO:

It's Spark Now:
Why Telecom Wanted To Change

New Zealand led the world when Chorus demerged from Telecom. It gave us a telecommunications industry structure where the network is completely separated from the products and services it delivers. The changes brought about a new market dynamic and it dramatically changed Telecom’s role. More>>

ALSO:

Glass Half Empty: Dairy Prices Fall To Lowest Since 2012

Dairy product prices slumped to the lowest level since October 2012 in the latest GlobalDairyTrade auction, paced by whole milk powder and cheddar. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news