Ngai Tahu Holdings Corp celebrated a substantially
improved profit result by pledging to distribute more money to
its marae-based communities.
"We have increased grants to runanga by 24% and this trend
will continue next year, making a significant difference to
our marae-based communities throughout Te Waipounamu," Ngai
Tahu kaiwhakahaere Mark Solomon said when releasing the
financial results yesterday.
Ngai Tahu had introduced a fund to support marae development
and had increased environmental grants.
"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 said.
The corporation reported an operating profit of $55.1 million
for the year ended June, up 17.8 million, or 48%, on the
previous corresponding period (pcp) and nearly $6 million
ahead of budget.
Reported profit for the year was $95.7 million, up $79.8
million on the pcp.
The operating return on equity for the corporation was 9.07%
and the total return on equity 15.75%. Assets under
management by the corporation increased by $81.5 million to
$747.9 million. Total assets under management by the combined
group increased by nearly $79 million to $809 million.
Mr Solomon said Ngai Tahu Holdings had invested more than
$100 million throughout the year, including investment in
dairy developments, bringing forward existing residential
property development to assist the Christchurch recovery and
investing $22 million in Ngai Tahu Tourism's Agrodome
acquisition and the Rainbow Springs development.
Chief executive Greg Campbell said the group had focused on
improving operating cashflow, managing total cash flow and
reducing term debt.
"This is important for an intergenerational organisation like
Ngai Tahu, which needs to be confident that it has sound
investment propositions for the future."
It must also have healthy annual distributions that could be
made to maintain cultural, educational and wellbeing
programmes, while reinvesting retained earnings, he said.
"Our work in recent years has been very heartening, but the
job is far from over."
Boards and staff would continue to build on the strength of
the portfolio by pursuing and capitalising on opportunities
that matched the values of the tribe, Mr Campbell said.
Corporation chairman Trevor Burt said the year had been one
of "exceptional growth", the positive trend largely
attributable to the strength and resilience of the group's
assets, the diversity of its portfolio and skills of its
Mr Solomon said new initiatives for the financial year
included the distribution of $200,000 in environmental grants
to runanga entities and the establishment of the Marae
Development Fund, which distributed grants totaling nearly
$952,000 to eight different marae. Those grants were used for
maintenance, renovation and rebuilding projects.
There was continued 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."
The earthquake recovery efforts also continued through the
year, he said. In total, $953,000 was distributed in the year
to whanau and organisations to support earthquake-response
and recovery efforts.
At a glance
• Operating profit $55.1 million, up 48%.
• Total assets under management $809 million.
• Annual grants to runanga rose 24% to $240,000 per
• Allocations to iwi since settlement increase to $245