NGĀTI AWA GROUP HOLDINGS LTD NGĀTI AWA ASSET HOLDINGS LTD
Chairman’s Report
The directors of Ngāti Awa Group Holdings Limited and Ngāti Awa Asset Holdings Limited (together jointly referred to in this report as the “Commercial Group” or “Group”) are pleased to be able to report to you on their activities and results for the financial year ended June 2019.
TE RŪNANGA O NGĀTI AWA | ANNUAL REPORT 2019
Three pou have underpinned our work this year these being: the adoption of a “Letter of Expectation” with our shareholder, Te Runanga o Ngāti Awa (“TRONA”); a review and refresh of the Group’s Strategic Plan; and, the appointment of a new Chief Executive, Ms Tracey Hook (Te Āti Haunui-aPāpārangi and Ngā Wairiki) who takes up the role in November 2019.
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The Letter of Expectation is a formal (but not constitutional) tool that provides an opportunity for our Shareholder (TRONA) to set out its expectations of the Group for the coming year. It also provides the opportunity for the Group to consider TRONA’s expectations as it develops its annual plan. In the first quarter of the financial year and as signalled in last year’s report, your directors, senior management of both the Commercial Group and TRONA, and a number of Representatives participated in a review of the Group’s Strategic Plan. While some of the existing strategies were revalidated additional objectives were introduced to ensure strong alignment with the strategic direction of TRONA as outlined in Te Ara Poutama o Ngāti Awa. These included objectives relating to optimising business and employment opportunities for our Ngāti Awa people. We comment more on this later in
this report and also on the change in senior management. While the outcome for the financial year ended 30 June 2019 is down on the exceptional results achieved last year, a solid performance has nonetheless been realised with an operating surplus of $2.1 million. The total return on assets over the latest 5 year rolling period has fallen to 6.4% from a level of 6.7% for a similar period finishing June 2018. The biggest contributor to this fall has been the dairy farming operations, in particular Tumurau Farm. Within the farming portfolio the significant operational deficit attributable to Tumurau has been partially offset by achieving an operational surplus on Ngakauroa Farm and a close to breakeven result
