4 minute read
Chairman’s Report
Advertisement
On behalf of the Board I present this report on the activities of Ngāti Awa Group Holdings Limited and Ngāti Awa Asset Holdings Limited (jointly referred to as the Group) in what can only be described as a very challenging year. During the first five and a half months of the financial year’s activities the Group was on pace to achieve a record result across all of its business units. The last six months of the reporting period has proven to be the most demanding the Group has ever faced.
WHAKAARI ERUPTION
The eruption on 9 December 2019 has been traumatic and devasting for all, but most particularly the victims of this tragedy – the loss of many lives and the ongoing injuries suffered has been front of mind for Directors and staff. Nō reira, moe mai rā, okioki mai e te hūnga kua riro ki tua o Paerau. Haere atu, e hoki ki o mātua, ki o tūpuna, me kī nei, kua oti kē te moko o aituā te tā ki runga i a koutou. Moe mai, moe mai, okioki mai. We have been particularly concerned about the impact of the eruption and its aftermath on White Island Tours’ staff and as such, continue to provide access to counselling services and as much other support as possible. At the time of writing both the WorkSafe investigation and the Coronial inquiry into the eruption are ongoing. The Directors and staff of White Island Tours Limited have and continue to provide their full co-operation with these inquiries. The eruption has resulted in significant financial losses for White Island Tours Limited. Boat tours to Whakaari and Moutohorā/Whale Island wildlife sanctuary were suspended immediately following the eruption. Our newest vessel that was launched in April 2019, Te Puia Whakaari, needs extensive repairs and is still the subject of ongoing insurance negotiations. COVID-19
Like almost all businesses the COVID outbreak impacted our operations. In particular extra precautions had to be put in place to ensure continuation of our “essential” activities – horticulture and our ongoing farming enterprises. Other lines of business were significantly impacted.
2020 FINANCIAL RESULTS
Notwithstanding the two seminal challenges outlined immediately above the Group recorded net profit of $4.9m. We incurred extraordinary financial losses within our tourism activities, but gains made in our remaining business units has meant a total portfolio return on invested assets of 5% for the reporting period. Such a result is testament to, and underscores, the importance of having a diversified portfolio.
Within our primary sector portfolio the 2018 kiwifruit orchard purchase continues to provide very healthy returns. While dairy production and milksolid prices were stable this season, it is proving difficult to develop the economies of scale across the two dairy farms, Tumurau and Ngākauroa given the two units are quite some distance apart. Your Board is considering various options on how best to maximize returns from these operations. Our drystock unit at Ōhope (Ngāti Awa Farm) had good production but was hit by the suspension of meat processing during the COVID lockdown. Returns on our managed funds portfolio proved resilient – when COVID hit there was circa a 30% fall in stock markets but they have since rebounded. At the time of writing the domestic and international stock markets had both out performed previous highs. Fair value gains also contributed significantly to the Group result with revaluations on forest land and investment properties being undertaken during the financial year.
More detail on the Group results is provided in the CEO’s report.
ACKNOWLEDGEMENTS
In November, we were fortunate to be able to appoint Tracey Hook (Te Āti Haunui a Pāpārangi and Ngā Wairiki) as our new Chief Executive Officer. She was previously Tumutahua, Executive Director Finance of Te Wānanga o Aotearoa, and before that acting CFO and Group Financial Controller at Tainui Group Holdings Limited. Tracey is also Chair of Ngā Wairiki Ngāti Apa Developments Limited. Tracey has led a dedicated and committed staff through a most turbulent time and I and my fellow directors take this opportunity to record our sincere appreciation. Within a month of joining the Group, Tracey had to deal with the Whakaari eruption and did so with the very able support of our Whakaari White Island Tours General Manager, Patrick O’Sullivan. That leadership team’s response to the crisis, and the staff support provided, was and continues to be exemplary. We also continued with the annual Associate Director cadetship programme that we launched successfully in 2017. Alecia Wright-Chand, Regan Studer and Wharehuia Dixon all made valuable contributions to our work, and we trust the experience will be of benefit to them in their future careers. They each have another year to serve. Finally, I would like to thank Te Rūnanga o Ngāti Awa for placing their trust and faith in us again this year, and to my fellow Directors for their dedication and support in what has been an exceptionally challenging twelve months.
B Paul Quinn
CHAIRMAN
