CCHL returns $50m dividend to city council

Tuesday, 1 October 2024

Christchurch City Council asked for a higher return from its investment arm.

“Solid” performances by Christchurch City Council’s businesses have led to its holding company paying a $50 million dividend.

Christchurch City Holdings Ltd (CCHL) has reported a tax-paid profit of $111m for the 12 months to the end of June, an increase of 12% on the previous year.

The $50.7m council dividend was up 56% from $32.4m the previous year, after the council told CCHL it wanted a bigger return on its investments.

Christchurch Airport Company Ltd is three-quarters owned by city ratepayers.

CCHL fully owns Lyttelton Port Company, fibre business Enable, maintenance and construction company Citycare, recycling business EcoCentral, council development company Development Christchurch, and RBL Property, which owns the old Red Bus depot.

It also owns 75% of Christchurch International Airport (with central government) and 89.3% of electricity lines company Orion (with Selwyn District Council).

Bryan Pearson is chair of Christchurch City Holdings Ltd.

CCHL chair Bryan Pearson said the businesses’ solid performances, against a challenging backdrop, allowed the increased financial return to council.

“The CCHL group is a large employer and provider of essential infrastructure assets and services with a strong commitment to creating value beyond financial returns,” he said.

“Against the backdrop of a challenging year for the CCHL subsidiaries we are pleased to report the solid operating performances which have enabled increased returns to council.”

Lyttelton Port Company is 100% owned by Christchurch ratepayers.

CCHL’s acting chief executive Paul Silk said for the businesses in the group exposed to shifts in economic demand, the past year presented “some significant headwinds with variable impacts on performance”.

The total value of the businesses increased from $3.2b to $3.5b during the financial year. Total staff numbers exceeded 3000.

Canterbury lines company Orion is owned by Christchurch City Council and Selwyn District Council.

CCHL has also begun tallying its economic, environmental and social footprint.

Its first climate statement will be released on October 31.

Pearson said they are “mindful of the broadened expectations of CCHL as custodian of the wider group, and the significant operating challenges ahead”.

CCHL needs to balance an inter-generational focus supporting growth of the city and region against a fair return for current ratepayers, he said.