Games boost for NZ concern

WELLINGTON - Kingsgate International, a New Zealand-based property investment concern, said yesterday it would focus on expanding its operations into new markets in order to maximise opportunities brought about by the Sydney Olympics.

Chairman John Wilson told shareholders at the company's annual meeting that an anticipated rise in demand for accommodation during the Sydney Olympics in September boded well for its Sydney-based Millennium Sydney Hotel.

"The Olympics will also affect business throughout the coming year. Many travellers will have to schedule their itineraries to fit around accommodation and venue availability.

"This means that not only will revenue and occupancy levels be up over the Olympics but throughout the year," he said.

Mr Wilson said barring unforeseen circumstances, the company expected a satisfactory fiscal year ending December 31, and a positive net operating profit.

Kingsgate International shares closed trading yesterday steady at 13c.

Associated company CDL Investments was well poised for another successful year following last year's 53 per cent increase in profit, Mr Wilson said.

The company would continue to focus on development opportunities "in key growth areas."

"The quality of our earnings and the strength of our financial position will ensure we are well placed to take advantage of opportunities as they arise."

The 1999 financial year was a good one for CDLI, with not only a net after-tax profit of 53 per cent, but also a 50.8 per cent increase in earnings per share, and a 44.8 per cent increase on equity return.

Last year was the first time profit had been drawn solely from developed sections, rather than the sale of undeveloped "non-strategic" sections.

A high proportion of last year's profit came directly from development of land bought since the 1994 Landcorp acquisition.

Mr Wilson said CDLI's board felt the company was maintaining its market share in spite of market volatility and prevailing economic conditions.