Good Spirits Hospitality reports increased revenue, plans sale

Good Spirits Hospitality (GSH) has reported its unaudited financial results for the year ending June 30, 2023.

The company's EBITDA before unusual items increased to $4.3 million, compared to $0.3 million in the previous year.

Total operating revenue increased by 61% to $28.5 million, driven by the reopening of the hospitality industry after COVID-19 restrictions were lifted.

However, the company reported a net loss after tax of $13.8 million, primarily due to non-cash goodwill impairment and transaction costs.

Operating cash flows increased by 62% to $3.6 million.

GSH's nine operating venues traded profitably and showed resilience despite ongoing economic challenges.

The company has entered into a conditional agreement to sell its business and assets to Brew on Quay Limited for $20,701,400 plus GST.

GSH intends to seek delisting from the NZX and liquidate its companies following the sale.

The transaction is subject to shareholder approvals and is expected to be completed in the fourth quarter of 2023.

GSH's financier, Pacific Dawn Limited, has confirmed its support for the transaction.