Te Rūnanga Group releases accounts
Te Rūnanga o Ngāi Tahu has substantially increased its direct distributions to its marae-based communities following another year of record commercial results and ongoing improvement in administration and governance.
“Ngāi Tahu entities have released results that show extraordinary resilience and determination in difficult times,” says Te Rūnanga o Ngāi Tahu Kaiwhakahaere Mark Solomon.
The NTHC operating surplus of $55.1m was $17.8m (48%) above last year’s. NTHC assets combined with other tribal assets now exceed $800m.
“Ngāi Tahu Holdings Corporation is to be congratulated for another excellent set of results that fund an increased distribution supporting our people to achieve their aspirations and the aspirations they hold for their children. At the same time the distribution arm of our organisation, the Office of Te Rūnanga o Ngāi Tahu has managed to run extremely efficiently so that our regional communities and whānau can enjoy the direct benefit of the growth that comes from our tribal investments.
“In many ways, we are still only at the beginning of our reinvigoration since Settlement but we are enormously proud of our success so far and our investment policies are certainly paying off.”
Mr Solomon says the tribal distribution arm, the Office of Te Rūnanga o Ngāi Tahu, was proving to be extraordinarily resilient in tough times. “Our people are our main asset. They work hard, often well beyond the call of duty.”
He said there was a focus on direct distribution, capped central budget and growing the regions, with more funds being delivered to Papatipu Rūnanga (marae-based communities). “We have increased grants to rūnanga by 24% and this trend will continue next year, making a significant difference to our marae based communities throughout Te Waipounamu. We have also introduced a fund to support marae development and increased environmental grants”.
In releasing the results of Ngai Tahu Holdings Corporation (NTHC), Mark Solomon congratulated all commercial staff on their efforts over the financial year. “Our investment vehicle NTHC, and our commercial subsidiaries, Ngāi Tahu Capital, Ngāi Tahu Seafood, Ngāi Tahu Property and Ngāi Tahu Tourism are outstanding New Zealand companies,” Mark Solomon says. “All the subsidiaries have gone against the ongoing tide of economic uncertainty and ended the year with improved performance on the previous year.”
Ngāi Tahu Holdings Corporation chairman Trevor Burt said the year had been one of exceptional growth with the positive trend largely attributable to the strength and resilience of the group’s assets, the diversity of the portfolio and skill of “our people”. NTHC CE Greg Campbell added that the past three years of good results indicated a positive upward trend.
Ngāi Tahu Holdings Corporation (NTHC)
The year-end net operating surplus of $55.1m was up $17.8m (48%) on the previous year and $5.9m ahead of budget. Total net profit for the year was $95.7m, up $79.8m on the previous year.
Ngāi Tahu Holdings cash return (operating return on equity) was 9.07% and a total Return on Equity of 15.75%.
Assets under management by NTHC increased by $81.49m to $747.87m (see below for the combined total of the entire Te Rūnanga Group assets).
NTHC invested over $100m throughout the year, including investment into dairy developments, bringing forward existing residential property development to assist the Christchurch recovery and $22m into Ngāi Tahu Tourism’s Agrodome acquisition and the Rainbow Springs redevelopment including the Big Splash ride.
Greg Campbell says, “We have focused on improving operating cashflow, managing total cashflow and reducing term debt. This is important for an intergenerational organisation like Ngāi Tahu, which needs to be confident that it has sound investment propositions for the future, but also that healthy annual distributions can also be made to maintain cultural, educational and wellbeing programmes, whilst reinvesting retained earnings.
“Our work in recent years has been very heartening but the job is far from over. Our boards and staff will continue to build on the strength of the portfolio, by pursuing and capitalising on opportunities that match the values and returns of the tribe.”
Te Rūnanga Group Performance (performance of NTHC combined with all other tribal investments)
Assets under management by the combined group increased by $78.95 to $809.42m.
Annual grants to rūnanga increased by 24% to $240,000 per rūnanga.
Ngāi Tahu allocation to iwi activities since Settlement increase by $26.1m to $254m.
Mark Solomon says new initiatives for the financial year included the distribution of $200,000 in environmental grants to rūnanga entities and the establishment of the Marae Development Fund, which distributed grants totaling $951,881 to eight different marae. These grants were used for maintenance, renovation and rebuild projects.
“We saw continued whānau support of the tribal savings scheme Whai Rawa. The year yielded a return on member savings of 5.1% (before PIE tax). We are seeing increasing numbers of Whai Rawa members using their funds to help them through university or polytech, buy their first home or access funds to help them in later life.
“Our earthquake recovery efforts also continued throughout the year. In total $953,000 was distributed over the 12-month period to whānau and organisations to support earthquake response and recovery efforts.” The Earthquake Recovery Working Group, Te Awheawhe Rū Whenua, was able to distribute this money as a result of considerable funding received from Te Rūnanga o Ngāi Tahu and koha donated by other iwi and individuals.