ILT Group held its Annual General Meeting on 31 October 2023, providing a comprehensive overview of its financial performance for the year ending 31 March 2023. This meeting also marked the presentation of the final audited accounts for the years 2020, 2021, and 2022.
Despite a challenging four-year period impacted by the pandemic, staff shortages, rising inflation and increasing costs, ILT has consistently returned profitable results. This overall reported financial performance has been impacted by the impairment of a number of assets, including The Langlands. The impairment of these assets was a direct result of audit requirements, and reflected revaluations that were based on the impact of Covid, which was keenly felt by the hospitality industry.
The impact of this had to be spread across the past four financial years. This resulted in the community-owned organisation posting a surplus, after tax and donations, of over $1.58 million for the financial year ended 31 March 2023.
For the year ending March 31, 2021, the Group posted a surplus of $953k after accounting for taxes, donation and the impairment. The year ending March 31, 2022, and the final results for the year ending March 31, 2020, both showed deficits of $6.9 million and just over $6 million, respectively.
ILT Group Chair Paddy O’Brien acknowledged that on face value these results may look concerning, but emphasised the group was still in a very strong financial position and producing industry leading results. “The impairment of some of our hospitality assets, including The Langlands, is not unusual. Effectively, this is a book entry and does not change our cash position. In fact, it will improve our overall results moving forward as the impairment will actually result in a lower depreciation cost,” said Mr O’Brien.
Mr O’Brien highlighted the organisation’s remarkable contribution to the community during this period. “Despite the challenging circumstances ILT has produced a solid financial performance and most importantly, we have continued to grow our community donations back to pre-covid levels. This funding supports a wide range of community groups and initiatives.”
“Over the last four years we have returned over $29 million, which is a considerable amount given the remarkable economic climate we have traded under,” said Mr O’Brien.
ILT’s Chief Executive Chris Ramsay believes the result demonstrates how financially resilient the group is. “This has been the most disruptive period in our industry’s history, but we’ve successfully navigated it, whilst continuing to invest in our businesses and our people. The Langlands is one example of us investing in the future of Invercargill and looking for opportunities to grow our community contributions,” said Mr Ramsay.
“We have a ‘people first’ approach that ensures competitive remuneration and creates better outcomes for our ILT family of over 670. Earlier this year we were pleased to be able to recognise their efforts through our first ever staff-wide bonus,” he added.
It was noted that Audit New Zealand was the appointed auditor for the 2020, 2021 and 2022 financial years, with KPMG taking over from 2023 onwards. Mr O’Brien thanked both organisations for the seamless transition between auditors.