BIL half-year profit falls

BIL International Ltd today posted a 5.5 per cent first half profit fall, as the July bombings in London and higher lease costs ate into earnings at its main investment, the Thistle Hotel chain.

BIL reported an unaudited net after tax profit of US$30.7 million ($45.88 million) for the six months to December 31, compared with US$32.5 million in the same period a year earlier.

Today's result included a one-off gain from asset sales of US$14.5m.

BIL was formerly New Zealand corporate raider Sir Ron Brierley's Brierley Investments Ltd. It is now controlled by Hong Kong listed Guoco Group but has a secondary listing in New Zealand.

BIL said the July bombings on the London underground had a negative impact on occupancy and average room rates.

Higher lease rental costs due to a sale and leaseback transaction completed in April last year also lowered earnings.

Shares in BIL, which announced it would not pay a dividend, last traded in New Zealand yesterday at $1.28, against a year high of $1.37 touched earlier in the week.

- NZPA