Rainbow's End owner to spend $3.5m on castle upgrade
New Zealand Experience, which owns the Rainbow's End amusement park, plans to spend $3.5 million upgrading its Castle Land area.
BUSINESSDESK: New Zealand Experience, which owns the Rainbow’s End amusement park, plans to spend $3.5 million upgrading its Castle Land area, which is expected to boost earnings when it reopens next Easter.
The development is expected to lift medium-term profitability, the Auckland-based company said.
It affirmed annual profit guidance of between $1.2m and $1.4m, even though it flagged short-term earnings may be hit during the construction phase.
“The expected growth in revenues, and the reduction in our exposure to unfavourable weather for this targeted business, together provide opportunity for improved profitability at Rainbow’s End,” the company said.
NZ Experience cut its forecast annual earnings of between $1.4m and $1.6m after first-half trading was hit by competition from the Rugby World Cup and unfavourable weather.
The company also says it has agreed to a new $5.1m banking facility with Bank of New Zealand.
The shares, the bulk of which are held by Canada’s Garlow Management, the trustee for the Estate of George Ryerson Gardiner, last traded at 40 cents apiece, valuing the company at $14.8m.
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Rainbow's End owner to spend $3.5m on castle upgrade
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