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Wiri prison operator narrows loss

NZ NewswireNZ Newswire 16/11/2016 Jonathan Underhill

SecureFuture Wiri Holdings, which has the contract for the Auckland South Corrections Facility, narrowed its full-year loss while managing to double its dividend payment.

The loss narrowed to $1.6 million in the year ended June 30, from a loss of $7.5m a year earlier. Revenue fell 27 per cent to $41m but costs fell by about 40 per cent to $33m, resulting in a gain in gross profit of about $7.2m.

SecureFuture Wiri, which is owned by InfraRed Capital Partners, John Laing Investments and the ACC, won the contract for the high-security men's prison at Wiri in 2012 via a public-private partnership (PPP) arrangement.

The Wiri prison was officially opened in May last year and is run by Serco, which sold its 10 per cent stake in SecureFuture to InfraRed in June.

The company garnered almost as much interest income as it did revenue at $30.2m, up from $28m a year earlier.

SecureFuture's annual financial statements show the balance of its concession finance receivables at June 30 was $329m, down from $332m a year earlier.

The company paid about $34m to Serco to operate the prison, up from $16.4m a year earlier.

SecureFuture's annual loss included a $92,000 tax expense, while the year-earlier loss included a $2.69m tax gain. The company declared dividends of $5.5m in its latest year, up from $2.1m a year earlier.

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