Licensing trust reports $314,634 annual surplus

A STRONG financial position has allowed the Oamaru Licensing Trust to upgrade its assets, which will benefit the organisation in the long run, the trust’s chairman says.

The trust, which owns the Brydone Hotel, Northstar Motel, Oasthouse Liquorland and Sports Central Brewhouse, this week reported an aftertax surplus of $314,634 for the year to March 31, compared with $346,630 for the previous corresponding period.

Trust chairman Ali Brosnan said, while lower, the surplus was in line with expectations given the trust’s investment in its ongoing refurbishment project, largely focused on the Brydone Hotel.

‘‘Considering the amount of work [done] upgrading the rooms and [on] deferred maintenance, it’s pretty good.

‘‘I think the biggest thing is over the last four years [is] we’ve improved our equity by $1.109 million. The value of the business is going to grow at a lot faster rate going forward because we’ve got revaluations coming up and the business is doing better.’’

In the year to March 31, the trust spent $176,594 on repairs and main tenance. Trust general manager Cathy Maaka said there has been a ‘‘buildup of deferred maintenance’’, which was now being addressed.

Mr Brosnan said the trust was now in a financial position to undertake the work.

‘‘In the past we hadn’t been in a position to be able to do this and we’re doing this out of cash flow, plus we’re making profits on top of that.’’

PHOTO: DANIEL BIRCHFIELD Ongoing project . . . The Oamaru Licensing Trust has reported a surplus of more than $300,000 for the year to March 31, which is helping pay for upgrades to its largest asset, the Brydone Hotel.