Christchurch City Holdings profits up 25% on quake rebuild
BUSINESSDESK: Christchurch City Holdings Ltd, the investment arm of the city's council, posted a 25% increase in full-year profit after its City Care infrastructure unit doubled its construction activity as the region's rebuild got under way.
Profit increased to $97.3 million in the 12 months ended June 30 from $77.3 million a year earlier, the company said in a statement. Total income rose to $903 million from $750 million.
Construction revenue from City Care quadrupled to $121 million from $31 million a year earlier.
"The group has continued its recovery from the Canterbury earthquakes, with some of our companies experiencing very strong demand for their services, such as City Care and the Lyttelton Port Company," chairman Bruce Irvine says.
Lyttelton Port, the South Island's biggest port operator, reported strong improvements in trading and record container and coal volumes.
"More important than the immediate financial return to the group is the continued focus on rebuilding the region's infrastructure so the people of Christchurch and Canterbury can have confidence they have reliable infrastructure available to facilitate their own future investment decisions," Mr Irvine says.
The investment company paid $27.4 million in ordinary dividends and $8 million in special dividends to the city council.
It is also majority shareholder of electricity network Orion New Zealand, Christchurch International Airport Limited, fibre-optic network Enable Services, Red Bus and infrastructure and maintenance service provider EcoCentral.