By NZPA
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Tuesday 4th June 2002 |
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Submarines Australasia had operated for just over four months when it closed, citing poor weather and a post-September 11 drop in American tourist numbers.
The company is now weighing its options, which include activating the consents it has to operate in Queenstown or taking the operation offshore.
The Queenstown option is looking more likely after recent diving surveys of Lake Wakatipu where the company has found several wrecks.
They include the wreck of Ben Lomond, a 1873 steamer which plied the lake until it was sunk in 1952.
"It's a very nice shipwreck," said managing director Phillip Mladenov, who confirmed the wrecks could make tourist dives more attractive.
Part of the drawcard for the Milford dives was the area's rich sealife, but Mr Mladenov said the two sites could not be compared -- "they're very different dive locations".
The company's re-emergence hinges on fresh financial backing, and it is in "active discussions" with a number of possible operating partners.
"The key is building an option up with a good business case," said chairman Paul Winter.
After posting a maiden $521,000 half year loss in March, the cash-strapped venture needs a new investment partner, preferably in the tourism industry.
It is still listed on the Stock Exchange and the company is considering a public offer as a partial solution. An $800,000 share float in June last year raised $590,000, nearly half of which came from underwriters.
Submarines Australasia's early closure was a major disappointment for the team which spent 18 months and $4.5 million on the Milford venture.
At $500 for an hour-long dive, the company was heavily dependent on wealthy American tourists who stayed at home after the September 11 attacks.
The company said it was also hampered by a year-long delay in receiving certification from the American Bureau of Shipping, which sets world standards for marine transportation.
"Certainly that certification process is very difficult and the fact it used up a year of time and working capital was not good," Mr Mladenov told NZPA last month.
"But we've learned an awful lot from the entire episode and it makes it a lot easier for setting up operations elsewhere in the world with that knowledge and the relationships we have built up."
He said the company had half a dozen technicians from overseas and they were all still with the company.
March's result was achieved on revenue of $21,000. Shareholders equity was $3.7 million and the loss per share was five cents.
The company's stock last traded on May 10 at 10c, well off its year high of 38c but above its low of 5c.
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