MFS Living and Leisure Group is lining up its business for the 2007 financial year after posting a net loss of $1.7 million for the year to June 30, 2006.
In 2005, MPY reported a net profit of $370,109.
Over the 12 months to June 30, 2006, AAE’s total revenue was $56.5 million.
MPY said the result was due to the group’s transition from a hotel fund into a diversified leisure investment vehicle.
During the year, MPY raised $175 million in new equity to buy the Oceanis Holdings, one of the world’s largest owners and operators of aquariums in the world. Oceanis recorded a trading loss in June and made an EBITDA contribution of $837,507 for the 30 days.
MPY said the Oceanis revenue and EBITDA were consistent with forecast.
The group also bought the Australian Alpine Enterprises, owner and operator of premier Victorian ski resorts Mt Hotham and Falls Creek from MFS Limited for $110 million. MPY did not bring to account any earnings contribution from AAE for the year ended 30 June 2006.
MPY said AAE resort operations reflect slow start to season – circa $200,000 and AAE Resort operations reflect higher than expected labour costs circa $200,000 and other sundry costs circa
$200,000.
AAE’s property reflects timing of booking of Dinner Plain land sales at June 30, 2006 circa $600,000.
In the meantime, MPY has contracted to sell hotels in Mt Isa and Alice Springs for $10.1 million. The contract for the sale of the three remaining Hotels was executed by July 04 2006. Proceeds from the sale are expected to be received in the second quarter of the 2006 / 2007 year and will be used to reduce debt and meet selling costs.
Looking ahead, MPY said overall result for FY 2007 will be in line with prospectus forecasts.
In addition, the group said new project management opportunities for both Oceanis and AAE are under investigation/tender and the group has several leisure business opportunities under consideration.
MPY said MFS Limited’s potential acquisition of S8 would also provide significant distribution for MPY leisure product.
Earlier this month, MFS made a $700 million takeover bid for tourism property owner and manager S8.
By Kathryn O’Meara
