Croydon accommodation figures up 29%
The Mataura Valley Milk plant build is among reasons the Heartland Hotel Croydon has shown a “phenomenal” financial turnaround in its latest six-monthly report card, Mataura Licensing Trust general manager Mark Paterson says.
“The profit of $36,000 is $131,000 better than the 2017 half-year’s significant loss,” he said.
The review is of the first half of this year’s financial performance.
“This year would be one of only a handful of times in Croydon’s history that it is ahead of the game at the six-month stage,” he said.
“The turnaround in this operation is phenomenal.”
The star of the show was the accommodation at Croydon which was up 29% to $611,000.
“Food in this operation is also performing remarkably well, up to $62,000 or 11%.”
Many of the other MLT establishments also posted healthy returns.
At the Falls Hotel in Mataura, sales increased by 11% to nearly $600,000.
The net profit increased by $25,000.
Liquorland’s bottle store sales were up $2.6million which was $177,000 ahead of last year or up 7.47%, he said.
Forest Lodge Hotel’s core sales were up $34,000 or 8.1% to $465,000 which represented a good result for a country pub, he said.
The Three Rivers Hotel sales were up 6% or $24,000 in the first six months to $424,000.
All in all it had been a good start to the year, Mr Paterson said.
Heartland Hotel Croydon manager Michael Hartmann had worked in the hospitality industry from the ground up to managerial positions, in several locations.
Mr Hartmann acknowledged the building of the MVM plant had contributed to the financial boost the hotel had been experiencing.
That contribution came from not just plant employees and Chinese business partners but also from sub-contractors and companies working on the project.
The financial benefits were set to continue for some time, with visiting technical support personnel working at the plant.
The increase was not only due to the MVM project but there was also an increase in the number of visitors coming into the district and staying at the hotel, he said.
Mr Hartmann described the hotel as an amazing facility with excellent service due to a very good team.
MLT half-year figures ‘ very healthy’
Sales for the Mataura Licensing Trust (MLT) operation for the six-month period are up $446,950, 3.19%, to $11.348million.
MLT general manager Mark Paterson said the report card represented a very good result in all departments, strengthening the trust’s belief that it was on track for another strong year.
Accommodation income across the trust is up 26% ($140,000), food sales increased 3% ($58,000), bottle store sales increased 2% ($128,000) and bar sales reversed last year’s trend and are up 7% ($119,000).
Sundry income improved marginally by 1.4% ($27,000) to $477,784.
“At the six-month mark we have posted a very healthy profit of $13,722 against last year’s loss of $106,000 which is a significant improvement on years gone,” Mr Paterson said.
This was helped significantly by the increased gross profit from 36% to 37.4% leading to an increased gross profit overall of 8% or $318,000, he said.
The MLT paid out wages and salaries of $2.461million which were ahead of last year by 6%, or, in dollar terms, by $168,000.
“Costs overall were up 5% to $3,616,808, which, given the environment we operate in, is sound.”