SkyCity roadshow impresses Hamilton

By SIMON HENDERY leisure industry writer

SkyCity Entertainment Group's annual meeting roadshow hit Hamilton for the first time yesterday, with a performance offering something for everyone.

More than 500 shareholders attended the meeting at the company's 55 per cent-owned SkyCity Hamilton casino and restaurant complex.

They applauded when a share split was declared and showed due reverence when it was announced that one of Waikato's favourite sons, Sir Dryden Spring, would join the board.

The company's previous annual meetings - all held at the company's Auckland site - have attracted up to 1000 shareholders.

But its conference facilities there are out of action, with construction under way for the company's $175 million hotel, convention and exhibition centre.

Chairman Jon Hartley opened the meeting with a swipe at the company's competitors in the Auckland conventions and functions business, saying SkyCity had considered holding the meeting at another Auckland venue, "none of which were particularly appealing".

Hence the event in Hamilton, site of the group's newest casino, which opened a year ago.

Hartley recapped financial highlights of another record year for the company, during which net profit rose 26 per cent and the share price 17 per cent.

He said SkyCity last week became the only New Zealand company to feature on Forbes magazine's list of the world's best 200 companies with capitalisation of under US$1 billion - the second year in a row it has made the list.

After devoting considerable time to outlining the company's commitment to best practices in the area of corporate governance, Hartley was able to wow the crowd with news of the share split and Sir Dryden's appointment.

The two-for-one share split follows a similar move by the company in 2001 when its share price had topped $10. It will take effect at the close of trade on November 14.

Yesterday's shareholder applause was undoubtedly in anticipation that it would again encourage an upward surge in the share price.

The shares closed yesterday at $8.92.

Several shareholders took the opportunity to speak, voicing a range of opinions about various aspects of the group's transtasman business.

Concerns ranged from the high turnover of staff at the Auckland site's Rebo cafe, to a request for a hook on the back of the door of the women's disabled toilet on the main Auckland gaming floor.

"I think that's probably do-able," Hartley responded.

But there was little debate about a proposal to increase the total pool of directors' fees from a maximum of $450,000 to $600,000, a move that the company said was necessary to help it attract and maintain a quality board.

Shareholder voting on that motion, and the re-election of directors Patsy Reddy and Bill Trotter, was due to be collated overnight and was to be released the New Zealand and Australian stock exchanges this morning.