Diverse Portfolio a Winner in Difficult Times
Posted by: Te Rūnanga o Ngāi Tahu
Ngāi Tahu welcomes increase in Operating Net Surplus
Te Rūnanga o Ngāi Tahu Kaiwhakahaere Mark Solomon has congratulated the tribe’s commercial entities for their outstanding results in difficult times.
Despite the economic turmoil of global markets, and the short-term devaluation of property due to the recent Christchurch earthquakes, Ngāi Tahu Holdings Corporation has delivered an increase in its Operating Net Surplus, showing that the cash returns and financial position of the iwi are strong.
The Operating Net Surplus for Ngāi Tahu Holdings Corporation increased by $1.77m to a record $37.28m and assets under
NTHC management increased by $13.15m to $666.38m. Assets under management by the Te Rūnanga Group (those under both NTHC and the Office of Te Rūnanga o Ngāi Tahu) increased to $730.47m.
“Shareholders equity has increased by $23.35m to $519.06m, pushing through the $500 million barrier for the first time,” says Mark Solomon. “I want to thank the exceptional effort made by all commercial and tribal staff in the past year. Our people have really stepped up and I include all our stakeholders, our various board directors, management and staff, particularly those living in Canterbury who have simply got on with the job while the earth has been shaking around them.”
“I am certainly proud of these results. The commercial operating net surplus was able to support a significant distribution of funds for tribal and social development throughout the year.”
Ngāi Tahu Holdings Corporation chairman Trevor Burt says much of the success can be attributed to the fact that the tribe continually looks to invest in a broad range of businesses, as well as recent efforts to move away from assets not returning best results.
He says, “making investment decisions that deliver superior results in the best interests of our owners is essential in creating a sustainable long-term future for the iwi. These decisions are also benefiting local regions and the economy of New Zealand.”
CEO for Ngāi Tahu Holdings Corporation Greg Campbell says he always knew that the tribal investments were strong but the ability to produce positive results when times were tough was a true indicator of their worth.
“We have great investments in the seafood, property, tourism and retirement industries and more recently we have been looking to invest in another key industry – agriculture. The diversity of our portfolio has proven its worth in 2010-2011.”
He added that the results also showed how earlier moves away from less profitable business had paid off, “I can particularly commend Ngāi Tahu Seafood. They have gone through some significant change and in 2010-2011 they produced another record result.”
He says higher returns with some businesses had compensated for those areas where the global economic situation and the earthquakes had had a larger impact. “On balance, we are pleased, and look forward in a positive manner in spite of the recent challenges,” Greg Campbell says.