Invercargill City Holdings Limited’s six monthly group financial reports, showing strong profits and an increased dividend to Council, were presented to the Council’s Finance and Policy Committee last night (28 February 2017).

Invercargill City Holdings Limited (Holdco) is a holding company, 100% owned by the Invercargill City Council and its subsidiaries include Electricity Invercargill Limited, Invercargill City Forests Limited, Invercargill Airport Limited and Invercargill City Properties Limited.

According to the financial reports, in the six months to 31 December 2016, the Holdco Group’s profit was $5.2 million, up from $4.7million for the previous year.

The Group’s equity also increased strongly, to $94.3 million, up from $89.2 million. Holdco Chairman Cam McCulloch said that was the result of group profits and revaluation of Electricity Invercargill Limited’s network assets. Another contributing factor was the company’s strong operating cash flows, which had increased from $834,000 to $2.2 million.

“What will be of greatest interest of Invercargill’s ratepayers is that Holdco’s strong performance has allowed the company to pay an increased dividend to the Council, which is used to offset rates.

“Holdco has paid a dividend to Council of $4.7 million ($4 million in December 2016 and a further $700,000 in January 2017). This is up half a million dollars on the dividend last year and represents ten percent of the City Council’s rates take.”

Mr McCulloch said Directors were pleased with the performance of Holdco and its subsidiaries and the contribution the company was able to make to the financial wellbeing of Invercargill City.

The Holdco Directors are Cam McCulloch (Chair), Tim Loan (Deputy Chair), Lindsay Thomas, Graham Lewis and Darren Ludlow.