Taxman takes gloss off Shotover Jet's result

By SIMON HENDERY

Tourism operator Shotover Jet has reported a $3.3 million net profit for the year to June, down from $4.1 million a year earlier.

While revenue increased just under 4 per cent for the year to $25.5 million, the company said a big component of the fall in profit was an increase in its tax bill.

As a result of moving to a full tax-paying position, its tax bill jumped from $252,000 to $1.3 million.

Shotover, which is 88 per cent owned by South Island tribe Ngai Tahu, said its cash position was "reasonable" during the year, allowing it to buy Franz Josef Glacier Guides and Hollyford Valley Walks from operating cash reserves.

It also runs jetboat operations on the Shotover, Dart, Kawarau and Waikato rivers, and owns the Rainbow Springs and Farm in Rotorua and a jetboating business in Fiji.

Because of its recent acquisitions and a commitment to invest in a new kiwi house at Rainbow Springs this year, the company would not pay a dividend.

Shotover said the tourism sector was continuing to enjoy the benefits of focused marketing and international exposure.

"However, all this was in the context of a recessionary world economy, an appreciating New Zealand dollar, the Iraq war, the outbreak of the Sars virus and the collapse of major international airlines."

The company felt it had developed strategies to maximise returns in an uncertain environment and "subject to no significant change in the macro environment", it expected to continue to deliver better returns next year.

That would be achieved by consolidating existing operations, seeking efficiencies, identifying profit improvement opportunities and selectively reinvesting capital.

Shotover would also consider acquisitions as cash became available.