Shotover profit blasts ahead

By SIMON HENDERY

Shotover Jet's interim profit has blasted ahead 30 per cent, a rise the tourism operator says is due to better margins and cost control.

The company yesterday reported a net profit of $1.15 million for the six months to December 31, up from $882,000 for the same period in 2001.

Revenue for the half-year was flat at just under $11.9 million.

The company increased prices last year and said yesterday that improved margin management and cost control were key parts of its strategy.

"The strategy is working well and is evidenced by a 6 per cent gross margin performance increase, as a percentage of sales, compared to the same period last year," chief executive Adrian Januszkiewicz said.

The company, 88.3 per cent owned by Ngai Tahu Holdings, will not pay an interim dividend, because of last week's $2 million purchase of a half-share in Franz Josef Glacier Guides.

A decision on paying a final dividend would be made by the Shotover board later in the year.

Last year Shotover Jet reported a $4 million full-year net profit. Mr Januszkiewicz said despite predictions of a slower rate of tourism growth this year the company was confident in an improved performance.

Shotover Jet runs jetboat businesses on the Shotover, Dart, Kawarau and Waikato rivers, and owns the Rainbow Springs and Farm, in Rotorua, and a Fiji jetboat business.