As a phase of exciting growth continues, ILT has announced another strong financial performance for the year ending March 2019.
While the reported after-tax profit of $2.951 million shows a $1.9 million decrease on last year’s result, this can be attributed primarily to the write-off of both Barluca and The Kiln which were demolished to make way for construction of The Langlands inner-city hotel.
“In the normal scheme of things this would be something to be very concerned about but this is the write-off of the building assets on the new hotel site,” chief executive Chris Ramsay said.
“We’ve actually managed to increase comparable profit by 2.9 percent at a time when we’ve closed two businesses so the process has been very well managed. We’re in a sound financial position and this is another solid financial year’s performance.
“We’re in a growth phase, particularly with regard to reinvesting in and adding to our asset base. Moving forward our budget for the coming year again has aggressive targets for project repair and maintenance work, including the Homestead Avenal which is currently underway.”
Chairman Alan Dennis said despite allocating substantial budget to various projects, ILT remained committed to continuing its support for a vast array of local organisations.
Grants totalling $8.399 million were injected into the community, compared to $8.318 million last year.
“We’re building a new hotel, reinvesting in our businesses at a record level of $7.5 million and we’re doing this whilst maintaining our current grant levels,” Dennis said.
“When we reviewed our strategic plan, it became very clear to us that we wanted to live and breathe our new vision ‘a vibrant Invercargill’ and our new mission as an organisation ‘for our community’.
“So many worthwhile organisations rely on the level of support we provide and we’re certainly aware of the vital role we play in our community. However, we are being challenged by an increased demand for funding while the level of money we have to contribute is forecast to remain static.
The city would continue to benefit from ILT funding one-off projects.
“As a great working example of that, ILT was the primary funder for the marketing fund which enticed the direct Air New Zealand flights between here and Auckland. That’s testament to our commitment to help drive events and activity in the city,” Dennis said.
“As we strive to create a more vibrant Invercargill we will continue to proactively challenge the status quo as we explore new opportunities.
“The exciting progress being experienced in Invercargill is evidence community-owned enterprises and private enterprise can work effectively together to achieve positive things.”
Ramsay said the community ownership model was becoming more valued globally.
“It’s both our uniqueness and our reason for being,” he said.
ILT employs 700 staff across its establishments, whilst also spending over $30 million with local suppliers annually.
The AGM was held on Wednesday, 28 August 2019 at Elmwood Garden.