Depreciation sees motelier lose $1 million

WELLINGTON - Listed motel operator Manor Inns posted a $1.02 million half-year loss, largely due to an increase in depreciation costs.

The loss compares with a $638,000 loss for the six months to December 31, 1998.

Turnover was 7.4 per cent ahead of the previous half-year, at $2.46 million against $2.29 million, but depreciation wiped $271,000 from the bottom line.

Depreciation costs were previously just $7000.

Manor Inns said acquisition costs of $116,000 also had an impact in this reporting period.

A competitive market continued to affect trading, and the company was focusing on operational efficiencies to improve performance. It expected its second-half result to be ahead of the same period in 1998.

Manor Inns' shares ended down 1c at 16c, with just 2000 shares crossed. - NZPA