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- Release Date: 24/01/13 17:41
- Summary: FORECAST: NZE: Preliminary Financial Results and Expectations
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NZE
24/01/2013 15:41
FORECAST
REL: 1541 HRS New Zealand Experience Limited
FORECAST: NZE: Preliminary Financial Results and Expectations
PRELIMINARY FINANCIAL RESULTS AND EXPECTATIONS
24 January 2013
New Zealand Experience Limited (NZE), owner and operator of Rainbow's End
Theme Park, will make its preliminary announcement of the financial results
for the first six months to 31 December 2012 on 21 February 2013.
RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2012:
Preparation of the financial results for presentation to the Board of NZE is
continuing. Draft results have been received by the Committee of Independent
Directors of NZE, that Committee being in place in relation to the Takeover
Offer process which is currently still in progress by Rangatira Limited in
respect of the shares of NZE.
Further to the update on year to date trading provided on 11 December 2012,
the draft results for the six months to 31 December 2012 indicate a net
profit after tax which is similar to the corresponding period to 31 December
2011. Visitor levels have been lower than our own internal targets,
primarily affected by greater than anticipated disruption to the operations
from the substantial redevelopment undertaken to transform the Castle Land
area into Kidz Kingdom. The full closure of this area was determined as the
best means of achieving required completion targets. This also caused a flow
on effect to our normal pricing structures due to the change in offerings to
accommodate our younger visitors.
The short-term outcome is disappointing, however that impact is now behind us
with stage one of Kidz Kingdom completed on time and open for visitors to
enjoy. Construction works relating to stage two which will complete the
development and is due to open in April, can continue without further
disruptions. We remain confident that Kidz Kingdom will provide an excellent
platform for the growth of the Park into the future.
FULL YEAR EXPECTATIONS TO 30 JUNE 2013:
Our expectations set at the start of this year were for a target net profit
after tax of $1.4 million to $1.6 million. Based on the draft results for
the first half of the year, we expect to revise our full year expectations to
be within a range of $1.3 million to $1.4 million. As occurred in the last
financial year we will continue to seek out initiatives to maximise our year
end results. Our updated target will be confirmed and advised when we make
our preliminary announcement on 21 February 2013.
We do not expect the second half of this financial year to be as strong as
the corresponding period to 30 June 2012, due to promotional activity
associated with the April opening and launch of Kidz Kingdom, coupled with
initial operating costs, and also the scheduled refurbishment of three of our
major rides in the main park area, including a full repaint of the high
profile and feature Fearfall and Roller Coaster rides.
The 2013 financial year promises to be one of substantive change for the
Park, with the excitement and prospects of Kidz Kingdom and the continuing
refresh programme for the main park (of which Kidz Kingdom is one part). We
will also be continuing with our planning process for the next new attraction
for the main park as we look to further grow our visitor numbers in the 2014
financial year.
For enquiries relating to this release please contact Rodney Walshe, Chairman
of the Board and of the Independent Committee, on 021 630 777.
End CA:00232296 For:NZE Type:FORECAST Time:2013-01-24 15:41:25
