We see that Jasons have today reported to the NZX that their trading result for the full year ending 31 March 2013 will be a net loss before tax.
Accordingly, the company has breached interest cover and debt to earnings before interest, tax, depreciation and amortisation covenants with their bankers.
Just like many of their advertisers, it would appear that Jasons will soon be in talks with their bank manager. In Jasons case, they have applied to have the breach waived.
Although the Motel sector's online and print publication is Jasons largest single income generator, this traditionally only represents around one third of Jasons annual revenue.
In a depressed tourism market with the motel sector in particular the worst performing of all accommodation tourism sectors, surprisingly New Zealand sales have been reported only slightly behind budget.
The main drag in overall performance would appear to be with the operation in Australia with sales reported well behind budget. As a result, Jasons will be reducing employee numbers and areas of operation in Australia for 2013/14.
Full disclosure follows:
