|CentrePort Annual Report|
|Tuesday, 01 September 2009 12:00|
CentrePort today announced an underlying profit before tax of $11.4m for the year ended June 2009. The result mirrors the performance of the previous year.
CentrePort Chief Executive Blair O'Keeffe said that the result shows the benefits of CentrePort's diversification strategy and lower interest rates. "Trading conditions have been extremely tough. While the first half of the year delivered strong results, the second half saw significant reductions in cargo movements through the port."
Nevertheless, on the back of a strong first half, CentrePort grew container volumes by 4% overall, experienced record log volumes, welcomed 58 cruise vessels and increased Group revenue by 4% to $55.1m throughout the year.
Consistent with the property sector, unrealised changes in the fair value of assets and financial instruments dampened the final result, with a partial reversal of previous years' gains. However, in total the company's asset base grew by 14% throughout the year.
CentrePort remained well within its banking convenants and continued to focus on stability of earnings and prudent cost management.
O'Keeffe said that over the last year CentrePort continued to invest in upgrading and refreshing assets to help ensure Wellington's infrastructure retains its importance in New Zealand. Investments included multi-million dollar wharf upgrades and new container straddles, including world-first voice recognition technology.
CentrePort also completed construction of its new Green Star - 5 star rated building – BNZ Harbour Quays.
O'Keeffe said that revenue growth in the current climate is a result that the company is proud of and growth remains a key objective. He said CentrePort is better positioned than many to weather the economic storm, but he expects the current year to be particularly challenging as the effects of the recession continue to place significant pressure on profits.