One month into its new financial year, the Ashburton Trust has logged a solid trading month for April, with sales up 20 per cent on the previous year. The positive trading month followed a string of profitable months for the trust that extend back to October.
In April the trust's earnings before interest, tax, depreciation and amortisation (EBITDA) for April was nearly 11 times greater than for April 2010.
Trust chief executive, Giles Beal, said the trust's cash balances now had "comfortable headroom".
"We've had a strong trading result across the group, but this was driven by accommodation in particular and robust sales are expected to continue there for some time."
The trust accepted the accommodation bubble, that had its origins in the February 22 earthquake, might not last.
While this accounted for a portion of growth, overall sales across all outlets were showing a clear upward trend, Mr Beal said.
"We're seeing some good cost management flowing through into improved profits.
"The consistent and continued improvement over the last four months at the newer sites is very encouraging."
The trust's strategic plan had identified some challenging objectives for all of its sites and given the current trading conditions there was every reason to have confidence in these being achieved.
The Tinwald Tavern continued to be the trust's outstanding performer, but over recent months, all venues had been stars in their own right.
The Shed in particular, that had hit a trading wall for a period last year, had now picked up and was trading well, he said.
"Looking ahead, our focus will be on continuing to put emphasis on improving financial performance at all sites, generating positive cash flow and undertaking a programme of investment around existing venues with a view to improving long-term profitablilty and equity growth."
In the trust's strategic plan some capital expenditure had been identified for the year and the current strong trading period would put it in a good position to undertake this work, largely at the Hotel Ashburton.
On the back of a year where the trust's accounts struggled to make it through audit before the trading year ended, Mr Beal said initial audit work had already started.
"Management is very focused on getting the audit completed in good time this year."
In April the trust's earnings before interest, tax, depreciation and amortisation (EBITDA) for April was nearly 11 times greater than for April 2010.
Trust chief executive, Giles Beal, said the trust's cash balances now had "comfortable headroom".
"We've had a strong trading result across the group, but this was driven by accommodation in particular and robust sales are expected to continue there for some time."
The trust accepted the accommodation bubble, that had its origins in the February 22 earthquake, might not last.
While this accounted for a portion of growth, overall sales across all outlets were showing a clear upward trend, Mr Beal said.
"We're seeing some good cost management flowing through into improved profits.
"The consistent and continued improvement over the last four months at the newer sites is very encouraging."
The trust's strategic plan had identified some challenging objectives for all of its sites and given the current trading conditions there was every reason to have confidence in these being achieved.
The Tinwald Tavern continued to be the trust's outstanding performer, but over recent months, all venues had been stars in their own right.
The Shed in particular, that had hit a trading wall for a period last year, had now picked up and was trading well, he said.
"Looking ahead, our focus will be on continuing to put emphasis on improving financial performance at all sites, generating positive cash flow and undertaking a programme of investment around existing venues with a view to improving long-term profitablilty and equity growth."
In the trust's strategic plan some capital expenditure had been identified for the year and the current strong trading period would put it in a good position to undertake this work, largely at the Hotel Ashburton.
On the back of a year where the trust's accounts struggled to make it through audit before the trading year ended, Mr Beal said initial audit work had already started.
"Management is very focused on getting the audit completed in good time this year."
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