Playrope Aqua-Fun, are the Australian & New Zealand exclusive distributors for Vortex Aquatic Structures International, the world leader in aquatic playgrounds and urban water landscapes.…read more
Ardent Leisure facing potential $80 million liability in wake of Dreamworld inquest
Shares in Dreamworld operator Ardent Leisure have dropped to a new low this week after analysts suggested it could face massive financial liabilities over the 2016 Dreamworld tragedy.
Investment bank UBS warned the coronial inquiry into the deaths of four guests on the Thunder River Rapids ride in October 2016 could see it liable for hefty remediation costs.
UBS said challenges to Ardent’s successful USA Main Event division, would further soften its results and the bank downgraded its price target on the company by 25% to $1.20.
As reported by the Gold Coast Bulletin, Ardent shares dropped by 3.37% to $1 on Monday, the lowest since changes to its share structure took effect in November last year, removing its former listed company from the ASX.
The company’s latest results in February revealed it already spent $5.3 million in the six months to 25th December on “Dreamworld incident costs”, after insurance payments had been taken into account.
The Coroner’s report into the tragedy is expected in coming months.
Ardent has previously told shareholders it was insured for the type of tragedy that claimed four lives, but did not reveal whether or not the policies would pay out.
Ardent Leisure Chairman Gary Weiss said at the group’s 2017 AGM “there are levels of insurance cover in place but, obviously it’s a highly sensitive issue and I’m not at liberty to elaborate further.”
Ardent logged a $21.8 million loss for the first six months of the financial year as costs from the 2016 tragedy continued to drag on the company’s bottom line.
The losses resulted from a $38.9 million dip in revenue, largely related to the company’s sale of its marinas and bowling centres.
In April, Ardent announced it would borrow $225 million through Main Event, using part of the refinanced funds to pay off the company’s bank loans, which its half-yearly accounts said were $97.6 million.
Ardent said $80 million cash would support investment in theme parks.
UBS said delays to both the findings of the coronial inquiry into the Dreamworld incident and the launch of the Sky Voyager ride would affect the company.
Image: Dreamworld's former Thunder River Rapids Ride.
24th June 2019 - Children arrested after fire destroys Big Brother house
13th May 2019 - Dreamworld Tiger Cubs make first public appearance
8th April 2019 - Ardent Leisure borrows $225 million for attractions investment
13th March 2019 - Ardent Leisure shares hit seven-year low
7th March 2019 - Dreamworld advises appointment of safety engineering expert
22nd February 2019 - Ardent Leisure losses rise as guests fail to return to Dreamworld
7th December 2018 - Dreamworld reputation savaged at inquest
15th September 2018 - Commercial trampoline centre operators struggle to secure insurance
9th November 2016 - Dreamworld announce ‘permanent closure’ of ride involved in fatal incident
Asking a small favour
We hope that you value the news that we publish so while you're here can we ask for your support?
The news we publish at www.ausleisure.com.au is independent, credible (we hope) and free for you to access, with no pay walls and no annoying pop-up ads.
However, as an independent publisher, can we ask for you to support us by subscribing to the printed Australasian Leisure Management magazine - if you don't already do so.
Published bi-monthly since 1997, the printed Australasian Leisure Management differs from this website in that it publishes longer, in-depth and analytical features covering aquatics, attractions, entertainment, events, fitness, parks, recreation, sport, tourism and venues management.
Subscriptions cost just $90 a year.
Click here to subscribe.
The Complete Guide to Leisure Industry Products & Services.
AQUASPIN™ - Aqua Cycling Aquaspin™’s sessions have been specially designed by our Master Trainer to be challenging yet fun group cycling sessions. Each session is tailored to…read more
NovoFit is an exciting and dynamic new company born from two of Australia’s leading commercial fitness equipment suppliers. NovoFit combines over 45 years of industry expertise, delivering state…read more
Turnstile Entry Systems and Access Control Centaman Entrance Controls’ Award Winning Range of Access Control Systems includes tripod & triarm turnstiles, speedgates, full height…read more
Centaman has been a market leader in Enterprise Software Solutions for the leisure and recreation industry and both profit and not-for-profit attractions since 1991. It offers a wide range of software…read more
Otium Planning Group is a contemporary sport and leisure consultancy providing services in planning, facility development, management and funding for the sport, recreation and leisure industries…read more
Since 1989 Elite Pool Covers have designed and manufactured an extensive range of high quality affordable manual,semi-automatic and fully-automatic pool cover systems for the harsh Australian…read more
PulseTec Solutions is a leading provider of software systems and solutions to the health and fitness industry for more than a decade. Our key products and services include ClientConnect studio and…read more
get listed with our suppliers directory
Get your business noticed in our targeted directory. Viewed by 10,000 industry professionals per week!