John Schryver comes up leisurely for air Maurice Dunlevy From: The Australian November 28, 2009
THE Packer-controlled, listed Living & Leisure Australia has reported a 6 per cent increase in first-quarter earnings in positive signs that the international aquarium owner has escaped the worst of the global downturn. Despite no interim distribution for the second consecutive year, LLA chief executive John Schryver told the group's annual general meeting in Melbourne yesterday that this year had been a solid one for the leisure operator. "Our core businesses have proven to be resilient, and we have strong foundations on which to build our growth," he said.
While unitholders were told distributions would be reviewed at the end of this financial year, Mr Schryver said outside the meeting that they had topped the agenda at the previous day's board meeting: "We're very aware of value for security holders and investors, but the board wants to see how FY10 pans out."
LLA, the former MFS Living and Leisure tourism and hospitality off-shoot under the control of James Packer's Arctic Capital since August last year -- when the Hong Kong group mounted a $100 million rescue in the wake of MFS's collapse -- yesterday reported a lift in earnings before interest and taxes and depreciation in the first first quarter of this financial year of about 6 per cent compared to last year.
That good news comes after LLA reported a net loss last financial year of $15.4 million that included a $3.2m writedown on its two tree-top walk assets.
As well as tree-top walks and aquariums, LLA controls the Mount Hotham resort in the Victorian skifields and has interests at the nearby Falls Creek resort.
Mr Schryver said a successful 2009 ski season, as well as 3.56 million visitors to its aquariums, had kept the business on track.
Unitholders were told LLA was in a strong cash position with $17.6m in the bank at June 3, which was at the start of the cash-generating ski season. All business units were profitable and generating cash.
At the Melbourne Aquarium, where LLA spent about $28m building a live penguin Antarctica exhibit, visitor numbers were at an all-time high during the 2008-09 summer holidays.
LLA's current $135m debt gives the group gearing of about 30 per cent.
Mr Schryver said LLA did not intend to sell assets, but would reduce debt from operating income.
LLA Price at posting:
3.1¢ Sentiment: Hold Disclosure: Held
