Tauranga Art Gallery has warned the council that its second-year financial results may not be as scintillating as the first.

According to the gallery's half-yearly report to Tauranga City Council, revenue for the first six months of the financial year is ahead of budget thanks to increased return from events, exhibitions and retail sales.

Travelling exhibitions have helped to boost Tauranga Art Gallery's income.

The surplus for the six months ending on December 31 is $15,185, with the gallery expecting to post a $16,000 loss for the same period.

Interest and dividends were up slightly, but the biggest unbudgeted increase was in other revenue, which leapt from $61,562 to $125,179.

This includes unbudgeted extras of $2000 or so in venue hire, $17,000 in retail sales, $16,800 in events and $24,000 from exhibitions.

The gallery currently has three touring exhibitions from which it continues to draw income, with the Lynley Dodd exhibition currently touring Australia.

'It is very rewarding for us,” says Art Gallery Trust chair Phillida Perry.

Staff changes during the half-year include the resignations of registrar Toni Edmeades in September, who was replaced by Jo Torr seven weeks later. Exhibition designer Jamie Richardson finished on November 30 and was replaced by Mark Trufitt five weeks later.

Extra costs are expected to surface after the gallery hired business development manager Lee Warbrick in November for a year to identify sustainable revenue opportunities for the gallery.

Lee started on December 1, while former gallery director Penelope Jackson resigned the very next day.

The gallery also needs to replace outdated computer equipment, which will also begin during the 2015 financial year

There is also maintenance required on the building, and the air conditioning filters need to be replaced in accordance with H&S regulations and the Museum Aotearoa code of ethics.

'That is expected to put make the end of year budget unfavourable,” says Phillida.