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New Zealand Experience, the owner of Auckland fun-park Rainbow's End, expects to boost its net profit to $1.1 million, despite tough economic conditions and a 17 per cent rise in wage costs.
Chairman Tony Frankham told shareholders at yesterday's annual meeting the group was on track to meet the forecast, although the figure would be reviewed in February after the peak summer season.
"We have had an extended period of wet weather over the two school holiday periods so far, however we maintain this profit forecast," he said.
The forecast is slightly up on the June 2008 year in which the group made a net profit of $1.047 million.
The group's profits were hit by a 17 per cent increase in employee benefits driven by a rise in the minimum pay rate and the increase in annual leave. To cope with the increase the park had to increase its gate prices in August.
The group had also hoped to extend its lease agreement with the Manukau City Council beyond the current cut-off date of 2019 but had been unable to do so forcing it to delay investment in a new attraction that would have opened this summer. Rainbow's End aimed to invest in a significant new attraction every three years but it has been four years since the last major new attraction was opened.
However Frankham said discussions were now under way with the council and it hoped to sign off an extension to the lease by the end of the year. The group paid a final dividend of 2.5c per share in October.
