32
2014
f i n a n c i a l r e s u l t s
Tainui Group Holdings (TGH) and Waikato-Tainui Fisheries
(WTF) made good financial progress over the past year.
The combined net operating profit for the two companies
was $27.0 million, a rise of 30%. This reflected strong growth
in income, which increased 27% to $79.7 million, due to good
trading conditions at the Novotel Auckland Airport hotel
and recognising additional income from TGH’s investment in
Hamilton Riverview Hotel (HRH), being the Novotel Tainui
and Ibis Tainui, a result of the purchase of shares in this
business from Hamilton City Council (HCC).
The net profit for TGH and WTF was $44.3 million, down 2%
from 2013. Net profit is a combination of net operating profit
plus unrealised gains or losses, including asset revaluations.
Unrealised gains in investment properties this year were not
repeated at 2013 levels.
TGH and WTF paid a combined dividend of $13.9 million this
year, a 21% increase. This is a big step up from 2013 ($11.5
million), and is designed to enable Te Arataura to facilitate
tribal objectives for Waikato-Tainui.
The value of total assets at 31 March was $841 million, up
$103 million from the same time last year. This reflects new
assets purchased during the year and unrealised growth in
investment property.
The return on shareholder funds was 8%, down from 9% in
2013. Investments made right on balance date diluted this
return as did the purchase of HCC shares in HRH for which
only five and a half months results have been reported.
Total bank debt (excluding the hotels and Waikato Milking
Systems) sits at $182 million, with approved but unused
facilities of $68 million. Total debt currently represents 27%
of total assets. The company’s policy is that debt cannot
exceed more than 30%.
net oper ating profit – tgh + w tf
TGH
WTF
16
20
27
14
8
15
23
30
0
$M
$M
20
/10 /11 /12 /13 /14
0.5
0.4
0.4
TGH
WTF
TGH
WTF
34
39
0.5
47
(2.4)
23
0.4
12.5
25.0
37.5
50.0
0
net profit – tgh + w tf
total assets – tgh + w tf
45
0.4
/10 /11 /12 /13 /14
516
680
830
645
725
225
450
675
900
/10 /11 /12 /13 /14
$M
0
13
13
14
13
11
