Profit & Attendance Rise as Rainbow's End is Offered for Sale

The major shareholder of New Zealand Experience Limited, the listed holding company of Rainbowâs End theme park in Auckland's Manukau city, has commenced a process to seek expressions of interest for their 74.9% shareholding.
The Estate of George Ryerson Gardiner, which has effectively been a shareholder since 1995, has engaged Dave Lock and Andrew Clements of Zeus Management Limited to assist them with this process. The arrangements between the Estate and New Zealand Experience mean that if the Estate receives an offer which is acceptable to the Estate, then the bidder is likely to be obliged to make an offer on the same terms to all other shareholders of New Zealand Experience in accordance with the Takeovers Code in New Zealand.
The sale comes in the wake of New Zealand Experience advising that visitor numbers at the park rose by 17,000 (7%) to 273,500 and revenue rising by 10% to $9.7 million in the year to 30th June.
In advance of announcing the full company result s for the year to 30th June 2010 on 19th August , New Zealand Experience has indicated that after-tax profit from normal operations will be about $1.1 million. This is above the previously indicated $1 million, with the improved performance attributed to higher visitor numbers (largely as a result of the opening of the new Invader ride in December) admission price changes and a bigger spend by visitors
Rainbowâs End is open 364 days a year and guests pay one entry price to gain access and use of 22 primary rides and attractions, of which seven are totally dedicated for younger guests in the âCastle Landâ area. Within the Park, there are a number of food and beverage outlets, action photos and merchandise offerings. The Park also derives revenues from concessionaires, conferences, night functions, and birthday and group bookings.
New rides and attractions have continued to be added as the Park has developed, with the site continuing to enable expansion of the range and type of offerings. The most recent addition is the new $2 million âInvaderâ ride which opened in December of last year. The first of its type in the Southern Hemisphere, the ride combined with new event initiatives in 2010 has seen annual visitation for the year to June increase by 17,000 visitors with a further increase expected for the coming year. Visitation targets are 285,000 visitors for the coming year and back in line with historical levels of between 290,000 and 300,000 paying visitors each year.
The improved results follow on from a more difficult 2009 financial year when delays in concluding the details of the premises lease for the land upon which Rainbowâs End operates also delayed the introduction of the Parkâs new âInvaderâ attraction.
dave@zeus.net.nz