Dunedin City Holdings half-year profit up sharply

Dunedin City Holdings said today its December after tax net surplus jumped 170 per cent to $19.3 million.

Much of the improvement was due to the reversal of $9.4m tax provision.

Without the provision, the surplus would have been up 38 per cent to $9.9m.

Sales increased 21 per cent to $86.7m due to strong growth in the holding company's power utilities, Delta Utility Services and Auroa Energy.

Rapid development in Central Otago had underpinned the "excellent" result from the electricity units.

City Forests, which recently opened a new processing plant in Milburn, produced only a "modest" result as anticipated.

The company's Taieri Gorge Railway reported increased sales in a "fickle" tourism market.

- NZPA