The Invercargill Licensing Trust was continuing to take a cautious approach towards capital expenditure due to the ongoing impact of sudden Alert Level changes.
“Planning for capital expenditure projects for the impending new financial year is underway, with a total review of some of the larger projects that were in the schedule being a part of this process,” chief executive Chris Ramsay said.
In a report before today’s monthly meeting, Chris said lower liquor distribution sales into the Queenstown Lakes and Central Otago districts have accounted for a slightly lower ILT forecast profit for January 2021.
The report for the month showed that sales for January were lower by $717,000 or 10.1% less than January 2020.
However, the forecast profit before tax and donations for January 2021 was only slightly less than the $427,000 in January 2020, which was a good result, he said.
“Our sales in January were affected by Covid-19 border restrictions which has resulted in the loss of some international tour groups and also changing corporate travellers plans and also the way local people are now holidaying in New Zealand away from Invercargill,” he said.
Despite the lower sales, business were able to minimise wage and operating costs during the month, and as a result the overall trading profile was only $20,000 less than last year.
The year-to-date profit before tax and donations is now $7.4 million which is just under $200,000 lower than last year.
“This is a pleasing result given the disruption and uncertainty caused by the Covid-19 pandemic,” he said.
The ILT board also voted on a new deputy at its monthly meeting today, (Thursday 25th February) with board member Angela Newell stepping into the role, after Mike Mika resigned to become a district court Judge.
Newell was nominated by Paddy O’Brien and seconded by Suzanne Prentice.
The following grants have been approved by the ILT for January 2021:
The following grants have been allocated by trustees of the ILT Foundation: