Log In

Reset Password

Good year for ‘commercial arm’ of GDC

WITH an asset base of nearly $100 million, Gisborne Holdings can now rightfully assume the mantle of being the commercial arm of Gisborne District Council, says chairman Bob Proudfoot.

He was presenting the annual report of Gisborne Holdings to the council, which is the 100 percent shareholder in the company.

Mr Proudfoot said the company had continued to grow and now had a core asset base getting close to $100m, while continuing to increase its distribution to GDC — to a total of $2.55m for the year, which was $1.3m more than the statement of intent required.

The return on shareholder funds was 16.8 percent for the 2016/17 year.

The transfer of Waikanae Beach Holiday Park and the Vehicle Testing Station to GHL meant it could now rightfully assume the mantle of being the commercial arm of the council, said Mr Proudfoot.

These new entities were settling in well and promised to continue to provide solid contributions to increasing the annual distribution (dividend) to GDC.

There had been a number of operational highlights in the 2016/2017 financial year, including Gisborne Vehicle Testing, GHL’s property holdings and the Waikanae Holiday Park all exceeding their forecast revenue — the latter by 22 percent.

Tauwhareparae Farms produced a number of improvements over the year. Income for the farms was up on budget by 38 percent.

“There is much under way in the current year, including the $12.5m rebuild of the Fitzherbert Street administration centre as well as the $8m revamp of the holiday park,” said Mr Proudfoot.

There were also administration changes afoot, with two new positions to be advertised soon. The company recognised the excellent contribution from the hardworking team of people whose aim was to improve returns to the shareholders for the benefit of the community.

“GHL is fully owned by GDC and all our distribution is paid directly to GDC to help provide capital works and help to subsidise our fellow ratepayers’ rate demands.”

Mr Proudfoot said “GHL also has a social conscience”.

“If it eventuates, as is mooted, that GDC’s community houses are transferred to GHL, they would do so under the same basis as we manage the units for GDC now. The rents on existing units would stay at the same calculation basis as present. Our attitude is that as the model is not broken, don’t fix it.”

The value of carbon credits sold during the year was $1.75m. Carbon credits were revalued each year.

Just under 1500 hectares of pine trees were in various stages of development at Tauwhareparae. Harvested areas would be replanted this winter.

The company would look at areas where trees had been taken out previously and assess whether it would be better to replant because the land in that area had proven not to be suitable for sheep and cattle farming.

Was it better to put in something like manuka or something lighter that would not topple over and upset the land underneath?