Foodstuffs (Auckland) Limited Concise Annual Report 2012 · Foodstuffs (Auckland) Limited Concise...
Transcript of Foodstuffs (Auckland) Limited Concise Annual Report 2012 · Foodstuffs (Auckland) Limited Concise...
Foodstuffs (Auckland) Limited Concise Annual Report 2012
Fresh: Keeping it fresh for our customers 7 days a week.
Fresh new Vision:To set the direction for the next 10 years, we have a Fresh new vision with ambition to be "Proudly the biggest and best at what we do in 2022".
SELL THE MOST1
CUSTOMERS LOVE THEIR STORE2
UNRIVALLED REPUTATION3
SUSTAINABLE FUTURE4
Foodstuffs (Auckland) Limited - Annual Report 2012
02 Financial Highlights
04 Directors' Report
10 National Progress Report
18 Retail Report
19 Executive Team
20 Directors
22 Financial Reports
33 Directory
Contents
000000001
Financial Highlights
Group sales were $3,632m, an increase of 4% over the previous year.
2012 $3,632,028,000
2011 $3,493,833,000(1)
2010 $3,473,529,000
2009 $3,292,636,000
2008 $3,418,372,000
2007 $3,239,008,000
2006 $3,057,744,000
The distribution to members of $107.7m(2) (inclusive of interest) is a $5.0m (4.9%) increase over the previous year.
2012 $107,660,000
2011 $102,639,000
2010 $101,949,000
2009 $102,097,000
2008 $106,957,000
2007 $97,305,000
2006 $92,127,000
(1) Reclassified for 2011 as described in note 2 of the Summary of Financial Statements.
(2) Note 2 of the Summary Financial Statements shows distribution to members of $110.9m which for reporting purposes includes the 2011 dividend net of imputation credits.
Foodstuffs (Auckland) Limited - Annual Report 2012
Fresh futureFoodstuffs (Auckland) has embarked on a transforma-tional journey to create the future foundation of our business.
Phase One of Programme Lightning, the discovery and scoping phase of the programme, was successfully completed in November 2011. With Board approval granted for Phase Two, we’ll start designing, building, testing and implementing our exciting new solutions over the next few years, to give customers the right products, at the right price, in the right place, when they want them.
We are reviewing what we do to:Improve our practices,have accurate information for decision making
and create a better shopping experience for
our customers.
000000003
Directors' Report
FINANCIAL PERFORMANCE
Group sales for the 52 week period were $3,632m, an increase of $138m, or 4.0% over the previous financial year.
Parent Company sales were $3,569m, a comparable increase to 2011 of $179m or 5.3%. This was achieved against a continuing difficult economic environment and increasing competitive pressure in the market. The bulk of the sales increase registered in the Parent Company reflects sales increases from existing supermarket business, new stores and store refurbishments.
Operating profit for the Group increased by 2.9% to $140.6m. The result for the year included an increase in Other Income (11.4%) and Operating Expenses (11.8%) as revenue from suppliers, members and advertising expenses are included for the first time. Operating Expenses also included a one-off non-cash property impairment charge of $9.2m and higher distribution costs as a result of higher fuel costs.
Operating profit for the Parent Company increased by 11.1% to $94.2m reflecting the additional revenue and advertising expenses. Similarly profit before distribution to members for the Parent Company is $105.2m compared to $93.9m
It gives your Directors great pleasure to present to you the 87th Annual Report of Foodstuffs (Auckland) Limited, covering the Company’s operations and financial results for the year ended 26 February 2012.
last year, an increase of 12.0% including the adjustments referred to above. The final result reflects strong core margins and represents a solid performance in the current economic environment.
The Group cash flow from operating activities was also strong during the year and compares favourably to 2011 which, due to the timing of the year end, only included eleven of the twelve main monthly creditor payment runs. With prudent management, the Group remains well positioned to fund future store development, invest in the underlying technology infrastructure and continue to provide financial support to members.
DISTRIBUTION TO MEMBERS
The total distribution to members reported in the 2012 Statement of Comprehensive Income includes rebates and the fully imputed dividend paid in 2011:
2012 ($000)
2011 ($000)
Rebate from members’ trading 88,835 81,023
Dividend paid 3,250 6,500
92,085 87,523
Interest on Rebate Investment Vouchers of $18.8m
is separately disclosed within Finance costs.
Foodstuffs (Auckland) Limited - Annual Report 2012
The distribution to members payable in June
2012 is $107.7m(1) including interest, an increase
of $5.0m (4.9%) over the 2011 financial year.
2012 ($000)
2011 ($000)
Rebate from members’ trading 88,835 81,023
Dividend (excluding imputation credits) - 3,250
Imputation credits on dividend - 1,393Interest on Rebate Investment Vouchers(2)
18,825 16,973
107,660 102,639
The rebate to be paid in 2012 is $4.6m less than
the full taxable profits from trading with members
for the year. This represents a shift away from
paying out the full taxable profits from trading
with members. The Board’s decision to depart
from previous practice has not been taken lightly
and reflects the fact that the taxable profit in
the current year has benefited from a short term
reduction in tax depreciation on software assets.
The Board expects this position to reverse in
future years with the increasing investment in the
Group’s technology infrastructure and therefore
considers the 2012 distribution to be prudent.
The Board remains committed to ensuring the
returns to members are maintained in the spirit of
the co-operative system in which profits earned
are returned to members in direct proportion
to the business transacted with the Company.
The greater the support members give to the
Company the greater the benefit they receive.
The rebate on Private Label products purchased
through the Company’s warehouses has been
retained at 7.5%. This represents a supplementary
margin on Private Label products in addition
to the margin enjoyed at the time of sale.
After taking into consideration the future
requirements for funding of new stores, the
rate of the overall support rebate has been
maintained at 1.75% resulting in a total value
of this rebate of $55.0m, again payable by
way of 5 year Rebate Investment Vouchers.
The Rebate Investment Vouchers attract interest
at an initial rate of 8% per annum, with the interest
rate subject to annual review by the Board. The
Board has elected to maintain the 8% interest rate
despite the ongoing low interest rate environment
currently prevailing in the New Zealand economy.
Remaining supplier and other rebates
are payable in cash.
(1)Note 2 of the Summary Financial Statements shows distribution to members of $110.9m which for reporting purposes includes the 2011 dividend net of imputation credits.(2)Interest on Rebate Investment Vouchers is disclosed separately in Finance costs in the Summary Financial Statements.
000000005
FINANCIAL POSITION
A history of steady earnings and cashflow
growth, together with a managed capital
expenditure program has placed the Company
in a strong and conservative financial position.
Total assets have increased by $49m to
$1,617m. Inventory levels remain in line with
prior years. Trade receivables and related party
receivables have increased by $5.8m and $5.7m,
respectively. Property, Plant and Equipment
increases primarily represent the acquisition and
development of retail and warehousing properties.
Financial ratios continue to be maintained within
the requirements set down by the Company’s
principal lenders.
The Group has refreshed $300m of its committed
bank facilities during the year for a further three
years and as a result is well placed for future store
development and investment in the business.
FINANCE TO MEMBERS
The Company continues to play an important
funding role for members by assisting with
finance by way of direct advance or finance
guarantee to help members in the setting up
of new businesses, funding of changes of
ownership and the financing of major upgradings
and/or extensions to existing businesses.
As at balance date, loans to members stood
at $62.1m and bank overdraft and term loan
guarantees by the Company on behalf of
members amounted to $249m. This gave a total
financing commitment at balance date in respect
of members of $311.1m compared to $296.3m
at the end of the previous financial year.
EVENTS SUBSEQUENT TO BALANCE DATE
The Directors are not aware of any matter or
circumstance since the end of the financial year,
not otherwise dealt with in this report or the
Group financial statements, that has significantly
or may significantly affect the operation of the
Company, the results of those operations or
the state of affairs of the Company or Group.
AUDITORS
PricewaterhouseCoopers have conveyed
their willingness to continue in office.
SHAREHOLDER REPORTS
The Concise Annual Report is a summary of the
operational and financial activities for the financial
year. It is designed to be informative and easy
to read. The full Annual Report and Financial
Statements are available for shareholders
on request.
Foodstuffs (Auckland) Limited - Annual Report 2012
SUMMARY AND APPRECIATION
The Group has had another successful trading
year which has seen good sales growth particularly
in the Parent Company, consistently improved
profitability and distribution to members
higher than the previous year. We believe we
are well placed to face any challenges.
The grocery industry is highly competitive
requiring highly motivated and skilled personnel.
The commitment of our executive and staff
has been outstanding throughout the year.
Additionally, the Company is well served by
the members who are involved with committees
and of course our fellow Directors in achieving
the Company’s purpose and direction.
The Directors extend their appreciation to the
executive and staff for the first class job done
during the year under review and to those
members who have been active on committees.
We also express our thanks to our fellow Directors,
for the time they have spent on Company affairs
and for the contribution they make to the
Company’s progress. The excellent co-
operation and common sense of purpose which
exists between the Directors, management,
executive, staff, committee representatives
and members, continues to be a major
strength underpinning the Group’s success.
Grant Prince advised the Board in February of
his plans to take up a new opportunity in the
supermarket industry in Australia and resigned
from his position as Deputy Chairman and Director.
Grant had been in our business for over 20 years
and had made a significant contribution as an
owner/operator, Director and as a member of
numerous Board Committees. Our fellow Directors
and executive would like to thank him for this
and wish him all the very best for the future.
On behalf of the Board
Robert Redwood Murray Jordan Chairman of Directors Managing Director
The Group has had another successful trading year which has seen good sales growth particularly in the Parent Company.
000000007
Fresh new Brand and location.This year we introduced our customers to an evolution of the New World brand. Foodstuffs Auckland's first New World Metro opened in Auckland's Queens Street bringing fresh food and convenience to Auckland's CBD.
Customers are served the
freshest food combined with
great service. Fresh coffee is
part of the New World Metro
shopping experience.
National Progress Report
SALES
The year ending February 2012 saw continued growth
for the Foodstuffs Group, with combined revenues
of $8.33 billion, up $262.92 million, or 3.26%.
Distributions to members totalled $385.08 million,
an increase of $42.29 million over the previous year.
STORE DEVELOPMENTS
The year under review was another busy one from a
property development perspective, with a number
of new stores opened and a large number of store
refurbishments.
During the year, New World stores were opened in
Tokoroa, Stonefields in Auckland, the Auckland CBD
(Metro), Churton Park in Wellington, Kaiapoi, and Ilam
in Christchurch. New PAK’nSAVE stores were opened
in Kaitaia, and Papakura, and a new Four Square store
was built at Cooper’s Beach in Northland.
Extension and/or refurbishment projects were
completed at the New World stores at Victoria
Park in Auckland, Brookfield in Tauranga, Island
Bay in Wellington, Broadway in Palmerston North,
Northwood in Christchurch and the township
of Rolleston. A refurbishment project was also
completed at Wairau Road PAK’nSAVE on Auckland’s
North Shore.
The Aramoho and Cloverlea Four Squares were
extended and refitted to align with brand standards,
while other Four Square store extensions and/or
refurbishments were undertaken at Patea, Shalimar,
Waikanae, St John’s, National Park, Mahora in
Hastings, Dannevirke, Awapuni, Kaponga, Waterloo in
Lower Hutt, and Amberley in Canterbury.
The year under review was another busy one from a property development perspective, with a number of new stores opened and a large number of store refurbishments.
New fuel facilities were built as part of the Kaitaia
PAK’nSAVE store development and the PAK’nSAVE
Wairau Road refurbishment project. Miramar New
World developed a fuel facility on an ex-BP site
opposite the supermarket.
New markets and extensions to existing markets
provided an additional gross retail floor area of 25,635
square metres, an increase of 7.7% nationally.
TOTAL STORE NUMBERS
At the end of February, Foodstuffs co-operative
members operated 48 PAK’nSAVE stores, 137 New
World stores, 275 Four Square stores, 150 On The
Spot convenience stores, 18 Henry’s Beer, Wine and
Spirits outlets, 8 Gilmours stores and 43 fuel sites.
RETAIL INNOVATIONS
The companies continue to review and fine-tune their
store formats introducing a number of innovations in
each case.
Foodstuffs (Auckland) Limited (Foodstuffs Auckland)
opened its first store in the Auckland central business
district – New World Metro, catering for those living
and working in the inner-city. The store has a strong
emphasis on fresh food.
Foodstuffs (Wellington) Co-operative Society Limited
(Foodstuffs Wellington) set up a pop-up New World
store in Tawa as a temporary shopping solution for
customers while it builds a permanent New World in
the suburb. The new store, which will open in 2012,
will feature a new produce format with new style
fixtures and ticketing.
Foodstuffs (Auckland) Limited - Annual Report 2012
The development of New World stores at Ilam and
Northwood provided the opportunity for Foodstuffs
South Island Limited (Foodstuffs South Island) to
further develop the small ‘coffee to go‘ areas which
appear in some earlier developments and pilot
purpose built cafés. Customer reaction to these cafes
has been favourable and Foodstuffs South Island will
assess how they enhance the customer experience
with a view to determining the suitability of the café
concept for future developments.
The adoption of concrete polished floors and open
ceilings have proven to be well suited for the New
World Ilam environment and this same format is to be
incorporated into the rebuild of New World St Martins.
The combination of vinyl floor tiles and suspended
ceilings will still form part of the South Island’s New
World format. To enhance the developments in this
area, new composite floor tiles which are harder
wearing and able to withstand the rigours of
supermarket foot-traffic have been installed at the
New World stores in Kaiapoi, Rangiora, and
Northwood. The advantage of these tiles is that they
do not require a strip and polish and are less prone
to cracking than the clay tiles which have previously
been used.
The new refrigeration colour “Steel Alloy” adopted in
the South Island has proved to be less imposing than
the old ”Brunswick Green” colour. To ensure a smooth
changeover within stores and that a patchwork of
colours does not occur, each store expressing
interest in the new colour has been asked to provide
a programme for changing the colours of their
refrigeration and checkouts within a defined
timeframe.
As part of a continued focus on enhancing the
shopping experience, a lower produce cabinet was
used in New World Ilam to create an impression of
space, and there is a continued emphasis on, where
possible, providing serve-over meat counters and
displaying a working bakery environment to
customers.
The three national co-operatives have continued
to invest in their wholesale infrastructure, to support
growth objectives, improve the efficiency of
operations, and provide better servicing for the
membership.
REGIONAL INITIATIVES
Foodstuffs Auckland completed the first phase of
“Programme Lightning”, a programme initiated in 2010
to improve operating efficiencies and to establish the
platform which will underpin the Foodstuffs
Auckland's vision and strategy. Key objectives for the
programme include more effective buying, tighter
inventory controls, timely analysis of sales and
performance data, and more efficient processes and
operating practices. The future business model has
been defined, business tool requirements specified,
and a Business Readiness Programme rolled out in
eleven stores. This continues in 2012 when Foodstuffs
Auckland will commence the design and build phase
of the Programme.
Foodstuffs Auckland launched a second major
programme of work titled Programme Foundation,
to ensure a solid foundation for its growth and upon
which to build Programme Lightning and other
The three national co-operatives have continued to invest in their wholesale infrastructure, to support growth objectives, improve the efficiency of operations, and provide better servicing for the membership.
0000000011
NATIONAL MARKETING
During the year, Foodstuffs (N.Z.) Limited
strengthened our ability to build our brands nationally
with the establishment of a Foodstuffs Group
marketing function. This development has allowed us
to improve cost and efficiency in areas such as public
relations and improved media rates negotiations. It
has also allowed us to connect more effectively with
our supplier partners to launch national programmes
such as the successful Wattie’s Truckload Blowout.
Other activities will be brought into the national
Foodstuffs Group as appropriate in order to improve
quality and/or cost outcomes for the Foodstuffs
Group.
Key highlights of the national team included an
increased impact of PAK’nSAVE advertising and
promotions. This included talked about programmes
such as the New Zealand Apples campaign, ‘1987
Again’ during the Rugby World Cup, and Meat
Lovers' Week. The team also improved our speed to
market – responding to topical opportunities as well
as combating competitive fuel promotional offers. In
addition to the national promotional schedule for the
New World banner, the overall brand strategy has also
been under the microscope and a major restage will
occur in 2012.
Also integrated into the group marketing function is
our ongoing work programme designed to bring in
rebates from transactional services for members.
This work will continue throughout 2012 with an
added emphasis on understanding the implications
and appropriate strategies for the acceptance of
contactless ‘scheme-debit’ cards in the future.
transformational business initiatives. Programme
Foundation has already significantly enhanced the
company’s technology capability and will deliver new
data centres and core network capability in 2012.
Following on from the success of the National Careers
website, Foodstuffs Auckland has looked at other
human resource-related initiatives to collaborate on
with sister companies. As a result of dialogue with
Foodstuffs Wellington, the two companies have rolled
out Sonar 6 – an online performance management
programme. In Foodstuffs Auckland’s case, the
tool is now being used at the support centre and
for management and supervisory staff across all its
supply chain sites.
Foodstuffs Wellington began developing a new
warehousing facility for AF Logistics Limited. The
facility is being built in the Wellington harbour-side
suburb of Seaview and is due to be completed in
August 2012.
Foodstuffs Wellington also began investigating an
on-line shopping network and in early 2012 made
the decisions to proceed to implementation.
The new facility is scheduled to launch in early 2013.
Foodstuffs South Island announced Project
Greenfields to develop a new ‘state of art’ distribution
centre in Hornby, Christchurch. Construction of the
facility began in April 2012. The new building will total
40,000 square metres making it the largest single food
distribution centre in New Zealand. It is scheduled to
be operational by March 2013.
Foodstuffs (Auckland) Limited - Annual Report 2012
NATIONAL ADVOCACY
Foodstuffs (N.Z.) Limited continues to coordinate
national submissions and advocacy on public policy
issues. A major focus in this last year has been
the alcohol reform process which culminated in an
Alcohol Reform Bill being introduced to the House
last August. Foodstuffs’ submissions resulted in
a number of helpful technical amendments to the
Bill as reported back by Select Committee. More
recently, we have been working to secure support for
a Supplementary Order Paper to amend clause 105A
of the Bill which introduces a single alcohol display
in a non-prominent location. Our intent is to ensure
that the Government’s policy intent can be achieved
in a manner that provides certainty for business with
minimum compliance costs.
National submissions were also prepared for: the
Commerce Select Committee’s Inquiry into the Price
of Milk; the Smoke-free (Controls and Enforcement)
Amendment Bill, passed in July last year; Ministry of
Health’s consultations on Smoke-free regulations; the
Department of Labour’s Minimum Wage Review; the
Productivity Commission’s Review of International
Freight; the Ministry of Transport’s consultation
on changes to road-user charges; the Ministry of
Education’s Review of Industry Training; the Ministry
of Justice’s Investigation of Minimum Pricing of
Alcohol; and the Consumer Law Reform Bill.
In July 2011, Immigration NZ granted Foodstuffs’
application to have bakers added to the Immediate
Skills Shortage List, providing formal government
recognition of a skill shortage in this occupation.
The change has made it easier for stores to recruit
and retain foreign bakers on temporary work visas.
Further changes to accident compensation, food
regulation and employment law are expected to be
introduced in 2012 and Foodstuffs will continue to
monitor these developments and to provide advocacy
as needed on behalf of its members.
In conclusion, as Chairman of Directors, I would like to
express my appreciation to my fellow Directors and to
the executives and staff of the respective Foodstuffs
companies for the commitment and enthusiasm they
show in ensuring the ongoing progress, development
and success of the wider Foodstuffs organisation.
Robert Redwood Chairman Foodstuffs (N.Z.) Limited
During the year, Foodstuffs (N.Z.) Limited strengthened our ability to build our brands nationally with the establishment of a Group marketing team.
0000000013
Foodstuffs (Auckland) Limited - Annual Report 2012
You could say that being a grocer is in Vinod’s blood, he migrated to New Zealand with his family when he was twelve and after working in a dairy factory his father got the finances together to buy a Four Square in Auckland’s Onehunga. It was in his dad’s store that Vinod saw a copy of the Grocer’s Review with a picture of the then brand new New World Clendon and decided that one day he’d own a supermarket ‘like that one’. Little did he know that one day he would, in fact, own that very same supermarket. Vinod left school aged 15 and went to work at McWaters Four Square in Pukekohe, his duties included packing groceries in brown paper bags and mopping the floor, if he was really lucky he got to do the deliveries in the van. In the early 80’s Vinod’s father was given the opportunity to own and operate a Cut Price store, a Foodstuffs Welling-ton brand. The family all moved South and Vinod worked for the family business whilst completing his Foodstuffs (Auckland) Management Development course. In the mid 1980’s, Auckland called again with an opportunity at New World Green Bay as Grocery Manager.
It was at Green Bay Vinod met his wife Theresa and they now have three children, Jayden 13, Isabelle 8 and Priscilla aged 6 months. Next Vinod made the move to PAK'nSAVE Lincoln Road to work for owner/operator John Street as Assistant Grocery Manager and he continued his education at night school gaining an NZ Institute of Management Diploma. Vinod later became a Buyer, joining the PAK'nSAVE Ranging Committee and then Store Manager, a position he held for six years. After being awarded a Trainee Operator Scholarship in 2006, Vinod achieved what he set out to do all those years before and took ownership of New World Clendon. Vinod built a great culture at New World Clendon and the store went from strength to strength under his ownership.
In March 2012 Vinod became the owner of PAK'nSAVE Silverdale, a fresh new store in a fresh new catchment for PAK'nSAVE.
Fresh new catchments. PAK'nSAVE Silverdale opened in March 2012 serving a brand new customer catchment from the Whangaparoa area.
PAK'nSAVE Silverdale is owned and operated by Vinod Bhaga, pictured here with his wife and three children.
0000000015
We will build competence through creativity and innovation, speed to market, flexibility through productivity and being light on our feet, and excellence in everything we do.
The year can best be described as probably
the most challenging trading environment
experienced in recent years. The Retail Division
continued to focus on delivering improved results
across a broad spectrum of key performance
measures including operating standards, market
share, store and supplier relationships, store
profitability and a dedicated focus on brands.
The great momentum being built for National
initiatives across the spectrum of advertising,
customer relationship marketing through
Loyalty New Zealand and common retail brand
standards within the three co-operatives is
very pleasing, and the new trading year will
deliver even more focused brand support with
full involvement of the sister companies.
Maintaining customer relevance in last year’s
economic environment, as customers continued
to seek more value at lower cost, continued
to be challenging but as we provided the best
value available in the market we continued to be
successful. We constantly sort to improve the
efficiency of what we did both at the support centre
and at stores to enable us to provide the best offer
in the market to our customers that was sustainable.
At the start of the year we focussed on up-skilling
the operations team to deliver a far superior added
value support process to the member stores
through optimisation reports which concentrated
on a team based review.
The key achievements in fresh foods included the
forecasting system which is now firmly embedded
in the seafood business and providing for sales
growth through better ability to forecast sales
and therefore better buying and monitor costs.
The liquor review strategy recommendations
have been implemented and the strategic
meat review is underway.
We built competence in the grocery, chilled
and frozen arena through the recruitment of an
experienced and passionate category management
base and, while this continues to be a work
in progress, we recognise the need to build
credibility and confidence with members. The
vision for the category management team is to
develop a centre of excellence that will deliver
improved category results. This team is very
engaged in building joint business plans with
suppliers and is also focused on improving our
key metrics, one of which is speed to market.
PAK’nSAVE
Great success has been achieved in national
marketing initiatives, particularly in regard to ‘Bulk
Week’, ‘$5 Week’ and the ‘Mid-Year Blow Out’.
The nationally advertised PAK’nSAVE stickman
campaign remains incredibly successful, achieving
one of the highest recognition rates of any brand
advertising on television. The stickman concept
enables us to get across the simple message of
lowest prices in a humorous way.
Retail Report
Foodstuffs (Auckland) Limited - Annual Report 2011
NEW WORLD
National alignment and initiatives continued to get
stronger this year with the introduction of a national
Group Marketing Manager, Steve Bayliss. Following
this appointment, New World has been the first
focus, working toward a new brand campaign
and retail layer fighting price perception. National
product and price has strengthened with more
products being agreed and will continue to help
reinforce value to our customers.
In addition New World continued to sponsor elite
netball in New Zealand including the sponsorship
of the New Zealand Silver Ferns. This was an
incredibly successful national sponsorship which
is now filtering down to a local level. Most of our
New World operators have a strong relationship
with their local netball club and are providing great
support at the grass roots level.
FOUR SQUARE
Our heritage retail brand Four Square continued to
grow despite the difficult trading environment with
many initiatives to further strengthen the brand and
maintain the momentum that has been built over
the last couple of years.
GILMOURS
Gilmours has enjoyed excellent sales growth
versus last year.
A core range was established resulting in creating
focus on driving sales through range and presence
in-store and on the web, advertised in brochure
publications and increased support for suppliers.
CONCLUSION
We are working very hard to make the next financial
year a very successful one. In these current
uncertain economic times we are fortunate to have
three very good retail offerings, be it PAK’nSAVE
with lowest prices, New World offering great value,
a wide range of product and best service or our
Four Squares who offer true convenience.
In addition we are very encouraged by the results
being achieved by our Gilmours stores. We have
a great platform from which to continue to be
successful in the wholesale market and thereby
ensuring that we fulfil the Foodstuffs Auckland’s
mission of “Feeding New Zealand”.
We will build competence through creativity and
innovation, speed to market, flexibility through
productivity and being light on our feet, and
excellence in everything we do.
We will invest in strategic initiatives that increase
our market share, continue to excite our customer
and execute and deliver world class standards.
The retail team very much looks forward to the
challenge of the year ahead and delivering to our
customer’s expectations.
The year ahead will be challenging but we are up
for it! We are on the bus!
Rob Chemaly
GM Retail
We constantly sort to improve the efficiency of what we did both at the support centre and at stores to enable us to have provided the best offer in the market to our customers that was sustainable.
0000000017
Freshest foodWe're always looking for ways to inspire, surprise and delight our customers and we pride ourselves on sourcing the freshest and latest fresh food ideas from New Zealand and around the world.
"New Zealand has arrived where most cultures began: food is now far more important than fuel. It’s social, aspirational, and the time has come for our supermarkets to demonstrate the passion and discernment that shoppers see across the media and the wider market. Delicatessen is a great place to start. Lets differentiate the department from commodity categories with an evolving and contemporary range and inspiring service". Anthony Joseph Sales & Operations Manager - Delicatessen
Foodstuffs (Auckland) Limited - Annual Report 2012
Executive Team
Mike Brooker
General Manager, Legal
Angela Bull
General Manager, Property Development
David Stewart
Chief Financial Officer
Rob Chemaly
General Manager, Retail
Gijs Faber
General Manager, Supply Chain
Elizabeth Jeffs
General Manager, Human Resources
Murray Jordan
Managing Director
Peter Muggleston
Chief Information Officer
0000000019
Glenn Cotterill
Director
Glenn became a Director on
the Foodstuffs board in 1997.
His connection with
Foodstuffs started with his
father who worked for the
company for 25 years.
In February 1992 Glenn joined
Foodstuffs with the purchase
of New World Te Puke and
two years later he went on to
buy PAK’nSAVE Whakatane.
Staying with the PAK’nSAVE
brand, Glenn purchased
PAK’nSAVE Tauranga in
February 2002, which he
currently owns and operates.
Murray Jordan
Managing Director
Murray joined Foodstuffs in
2004 as General Manager,
Property Strategy. In August
2008 he took up the position
of General Manager, Retail
Sales and Performance and in
February 2010 was confirmed
as Managing Director
Designate. Murray was
appointed Managing Director
of Foodstuffs (Auckland)
Limited on 1 December 2010.
Brian Frecker
Director
Brian has been a Director on
the Foodstuffs board since
1983. He started out with
Foodstuffs in 1970 with the
purchase of the Four Square
on Ford Block in Rotorua and
went on to own and operate
two Cut Price Stores in
Rotorua and Ngongotaha.
In 1980 Brian opened New
World Westend in Rotorua
before moving to Auckland
in 1987 when he purchased
New World Southmall.
In February 1992 Brian
became the owner/operator
of his current business,
PAK´nSAVE Glen Innes.
John Smith
Director
John was elected to the
Foodstuffs Board in July
2006. He started his
Foodstuffs career working
after school in his father's
Four Square store. In 1986
John and his father went into
partnership and they
purchased New World
Dinsdale in Hamilton.
John went on to own and
operate New World Warkworth
in 1990 before moving to his
current store, PAK'nSAVE
Henderson in 2010.
Robert Redwood
Chairman
Robert became a Director on
the Foodstuffs Board in 2004.
He started his Foodstuffs
journey as a teenager when
he was a part-time delivery
boy for his local Four Square.
In 1987 Rob received a
Scholarship Award and
became a Foodstuffs member
with the purchase of the Cut
Price Store in Taumarunui,
which was later converted to
a Four Square. He went on to
own and operate New World
Hillcrest in Hamilton prior to
moving, in 1995, to his current
business, New World
Eastridge in Auckland’s
Eastern Suburbs.
Directors
Dean Waddell
Deputy Chairman
Dean was appointed to the
Foodstuffs Board in January
2010. A third generation
grocer, Dean began working
in the family supermarket,
New World Brookfield, at the
age of thirteen. He studied at
Massey University and
graduated with a Bachelor of
Business Studies before
returning to work at New
World Brookfield. Dean
purchased the store in
February 1992.
Foodstuffs (Auckland) Limited - Annual Report 2012
Glenn Miller
Director
Glenn has been a Director on
the Foodstuffs Board since
1999. A third generation
grocer, he was involved with
the family Four Square
business before purchasing
his first New World store.
Glenn is the current owner
operator of PAK´nSAVE Mill
Street which he purchased in
September 1992.
Garry Christini
Director
Garry was appointed to the
Foodstuffs Board in January
2009. He has been in the
retail industry both in New
Zealand and overseas since
1977 and first became a
member of Foodstuffs in
March 1994. Garry is
currently an owner/operator
in partnership at New World
Orewa.
Neil Foster
Director
Neil was appointed to the
Foodstuffs Board on 17 May
2012. He started his journey
with Foodstuffs on the Trainee
Operator Programme working
for Glenn Cotterill at New
World Te Puke and then
became the owner/operator
in 1994. In 1999 Neil took
ownership of his current store,
PAK’nSAVE Rotorua.
Paul Blackwell
Director
Paul was appointed to
the Foodstuffs Board on
1 May 2010. He came to
Foodstuffs with a strong retail
management background
and had owned and operated
several Paper Plus stores.
Paul first became a Foodstuffs
member in May 1993 when
he purchased New World
Matamata. After five years
in the Matamata store he went
on to open his current
business, PAK'nSAVE Albany
in August 1998.
0000000021
Fresh concept
Our people are one of our most valued assets. This year we launched the BeWell initiative giving Foodstuffs (Auckland) staff a range of options to assist them to stay fit and healthy. Over 300 Foodstuffs employees took part in Auckland's Round the Bays event.
Financial Reports
Foodstuffs (Auckland) Limited - Annual Report 2012
0000000023
FOODSTUFFS (AUCKLAND) LIMITED
Statements of Comprehensive Income for the period ended 26 February 2012
Group Group Parent Parent
2012 2011 2012 2011
$000 $000 $000 $000
Other Comprehensive Income
Items that may be reclassified subsequently to profit or loss:
Increase/(decrease) in fair value of hedging net of tax (482) (1,206) (482) (1,206)
Items that may not be reclassified subsequently to profit or loss:
Increase/(decrease) in fair value of other financial assets (8,805) (3,193) - -
Total Other Comprehensive Income (9,287) (4,399) (482) (1,206)
Total Comprehensive Income for the period attributable to members
14,916 (80,277) 8,364 (12,647)
Group Group Parent Parent
2012 2011 2012 2011
$000 $000 $000 $000
Revenue 3,632,028 3,493,833 3,569,489 3,390,324
Cost of sales (3,356,815) (3,237,059) (3,386,385) (3,219,866)
Gross profit 275,213 256,774 183,104 170,458
Other income 81,324 72,974 50,662 46,175
Operating expenses (215,933) (193,109) (139,604) (131,863)
Operating profit 140,604 136,639 94,162 84,770
Finance income 5,409 6,185 14,804 14,330
Finance costs (27,095) (28,169) (3,790) (5,153)
Net finance (costs)/income (21,686) (21,984) 11,014 9,177
Share of profit from Associates 2,810 504 - -
Profit before distribution to members 121,728 115,159 105,176 93,947
Distribution to members (92,085) (87,523) (92,085) (87,523)
Profit/(loss) before income tax 29,643 27,636 13,091 6,424
Income tax expense (5,440) (103,514) (4,245) (17,865)
Profit/(loss) for the period attributable to members 24,203 (75,878) 8,846 (11,441)
Items in the other comprehensive income are disclosed net of tax.
Foodstuffs (Auckland) Limited - Annual Report 2012
FOODSTUFFS (AUCKLAND) LIMITED
Statements of Financial Position as at 26 February 2012
Group Group Parent Parent
2012 2011 2012 2011
$000 $000 $000 $000
AssetsNon-current assets
Property, plant and equipment 1,111,909 1,066,022 122,364 127,703
Intangible assets 33,114 32,089 21,689 19,846
Investments in subsidiaries - - 14,865 14,865
Investments in associates 19,994 18,891 13,140 11,545
Derivative financial instruments - 120 - 120
Other financial assets 26,971 35,528 - -
Total non-current assets 1,191,988 1,152,650 172,058 174,079
Current assetsCash and cash equivalents 4,136 3,567 1,260 440
Trade and other receivables 243,883 238,074 218,105 212,892
Inventories 89,294 91,565 87,940 90,158
Related party receivables 88,100 82,352 194,273 159,331
Total current assets 425,413 415,558 501,578 462,821
Total assets 1,617,401 1,568,208 673,636 636,900
EquityCapital and reserves attributable to equity holders
Share capital 1,039 1,039 1,039 1,039
Other financial asset revaluation reserve (25,164) (16,359) - -
Hedging reserve (2,016) (1,534) (2,016) (1,534)
Retained earnings 594,690 570,487 113,741 104,895
Total equity 568,549 553,633 112,764 104,400
LiabilitiesNon-current liabilities
Rebate investment vouchers 253,263 235,119 54,967 51,467
Borrowings 109,200 122,200 - -
Deferred tax liability 106,092 113,721 9,563 10,251
Other liabilities 412 424 366 384
Total non-current liabilities 468,967 471,464 64,896 62,102
Current liabilitiesRebate investment vouchers 45,580 36,332 - -
Trade and other payables 478,673 461,066 428,551 426,193
Cash distribution to members 33,868 29,556 33,868 29,556
Income taxation payable 4,442 1,443 3,034 995
Derivative financial instruments 3,272 2,130 3,272 2,130
Related party payables 14,050 12,584 27,251 11,524
Total current liabilities 579,885 543,111 495,976 470,398
Total liabilities 1,048,852 1,014,575 560,872 532,500
Total equity and liabilities 1,617,401 1,568,208 673,636 636,900
Director16 May 2012
Director
0000000025
FOODSTUFFS (AUCKLAND) LIMITED
Statements of Changes in Equity for the period ended 26 February 2012
Issued share capital
$000
Other financial asset revaluation
reserve
$000
Hedging reserve
$000
Retained earnings
$000
Total Equity
$000
GroupAt 1 March 2010 1,039 (13,166) (328) 646,365 633,910
Profit/(loss) for the period - - - (75,878) (75,878)
Other comprehensive income
Increase/(decrease) in fair value of other financial assets - (3,193) - - (3,193)
Increase/(decrease) in fair value of hedging net of tax - - (1,206) - (1,206)
Total other comprehensive income - (3,193) (1,206) - (4,399)
At 27 February 2011 1,039 (16,359) (1,534) 570,487 553,633
Profit/(loss) for the period - - - 24,203 24,203
Other comprehensive income
Increase/(decrease) in fair value of other financial assets - (8,805) - - (8,805)
Increase/(decrease) in fair value of hedging net of tax - - (482) - (482)
Total other comprehensive income - (8,805) (482) - (9,287)
At 26 February 2012 1,039 (25,164) (2,016) 594,690 568,549
ParentAt 1 March 2010 1,039 - (328) 116,336 117,047
Profit/(loss) for the period - - - (11,441) (11,441)
Other comprehensive income
Increase/(decrease) in fair value of hedging net of tax - - (1,206) - (1,206)
Total other comprehensive income - - (1,206) - (1,206)
At 27 February 2011 1,039 - (1,534) 104,895 104,400
Profit/(loss) for the period - - - 8,846 8,846
Other comprehensive income
Increase/(decrease) in fair value of hedging net of tax - - (482) - (482)
Total other comprehensive income - - (482) - (482)
At 26 February 2012 1,039 - (2,016) 113,741 112,764
Foodstuffs (Auckland) Limited - Annual Report 2012
FOODSTUFFS (AUCKLAND) LIMITED
Cash Flow Statements for the period ended 26 February 2012
Group Group Parent Parent
2012 2011 2012 2011
$000 $000 $000 $000
Cash flows from operating activitiesCash receipts from customers 3,711,358 3,576,763 3,644,577 3,683,360
Cash paid to suppliers and employees (3,494,249) (3,245,119) (3,528,003) (3,394,761)
Cash generated from operations 217,109 331,644 116,574 288,599
Interest received 5,396 6,185 14,659 14,330
Interest paid (9,724) (11,196) (3,247) (5,153)
Net GST paid (21,003) (18,673) (37,016) (29,038)
Income tax paid (9,762) (7,982) (2,675) (3,000)
Net cash generated from operating activities 182,016 299,978 88,295 265,738
Cash flows from investing activitiesPurchase of property, plant and equipment (80,079) (111,015) (2,546) (5,502)
Proceeds from sale of property, plant and equipment 1,180 14,714 410 1,260
Purchase of intangible assets (10,191) (6,869) (9,689) (12,771)
Purchase of Subsidiaries - (3,790) - (3,790)
Purchase of Associates (350) (760) - -
Dividends received from other investments 3,257 3,086 13 4
Purchase of other financial assets (248) - - -
Advances to members (104,081) (109,572) (104,081) (104,495)
Repayment of advances to members 105,813 126,230 105,813 126,230
Repayment from/(advances to) Subsidiaries - - (35,911) (229,601)
Repayment from/(advances to) Associates (9,106) (5,711) (8,677) (15,987)
Sale of investments 2,420 - - -
Net cash generated from/(used in) investing activities (91,385) (93,687) (54,668) (244,653)
Cash flows from financing activitiesProceeds from/(repayment of) borrowings (13,000) (146,900) - -
Rebate investment vouchers paid (30,009) (26,426) - -
Interest on rebate investment vouchers paid (14,246) (12,090) - -
Dividends paid (3,250) (6,500) (3,250) (6,500)
Rebates paid (29,557) (15,593) (29,557) (15,593)
Net cash generated from/(used in) financing activities (90,062) (207,509) (32,807) (22,093)
Net increase/(decrease) in cash and cash equivalents 569 (1,218) 820 (1,007)
Cash and cash equivalents at beginning of period 3,567 4,785 440 1,447
Cash and cash equivalents at end of period 4,136 3,567 1,260 440
0000000027
1. Policies
Basis of Presentation
The summary financial statements are those of Foodstuffs (Auckland) Limited (the ‘Company’ or the ‘Parent Company’), its subsidiaries and associates (the ‘Group’ or ‘Foodstuffs’). Foodstuffs (Auckland) Limited has designated itself and the Group as profit oriented entities for the purposes of New Zealand Equivalents to International Financial Reporting Standards (NZ IFRS). They have been prepared in accordance with Financial Reporting Standard No. 43 "Summary Financial Statements" and have been extracted from full financial statements that comply with NZ IFRS which also comply with International Financial Reporting Standards. The full financial statements, signed on 16 May 2012, have been audited by PricewaterhouseCoopers and given an unqualified opinion. For a complete understanding of the financial affairs of the Group, the full financial statements are available for shareholders on request.
Accounting Periods
The Group has a weekly operating cycle ending on Sunday night. The annual accounting period follows this cycle and the period for this accounting period was for 52 weeks to 26 February 2012. This compares to the 2011 accounting period being a 52 week period to 27 February 2011.
Reclassifications
In the period ended 26 February 2012 certain balances relating to rental income, advertising income and expense have been grossed up between other income and operating expenses. Comparative information for 2011 has been reclassified accordingly.
2. Distributions to members
Group Group Parent Parent
2012 2011 2012 2011
$000 $000 $000 $000
Cash rebates 33,868 29,556 33,868 29,556
Rebate investment vouchers (RIVs) 54,967 51,467 54,967 51,467
Dividends 3,250 6,500 3,250 6,500
Distributions to members before interest 92,085 87,523 92,085 87,523
Interest on rebate investment vouchers included in finance costs 18,825 16,973 - -
Total distributions to members 110,910 104,496 92,085 87,523
Total Distributions in respect of current year trading and financing are represented as:
Total cash rebates and RIVs to members as above 88,835 81,023 88,835 81,023
Dividend proposed for current year trading - 3,250 - 3,250
Distribution related to the financial year 88,835 84,273 88,835 84,273
FOODSTUFFS (AUCKLAND) LIMITED
Notes to the Summary Financial Statements for the period ended 26 February 2012
Foodstuffs (Auckland) Limited - Annual Report 2012
3. Income tax expenseGroup Group Parent Parent
2012 2011 2012 2011
$000 $000 $000 $000
Statement of comprehensive income
Current tax:
Current tax on profit for the period 12,497 8,175 4,715 3,453
Adjustments in respect of prior years 384 (1,067) 30 (41)
Total current tax 12,881 7,108 4,745 3,412
Deferred tax (6,326) 104,546 (565) 15,185
Impact in change of tax rate / adjustment for prior years (1,115) (8,140) 65 (732)
Total deferred tax (7,441) 96,406 (500) 14,453
Income tax charge/(credit) reported in statement of comprehensive income
5,440 103,514 4,245 17,865
Reconciliation of effective tax charge
Profit before distribution to members 121,728 115,159 105,176 93,947
Distribution to members (92,085) (87,523) (92,085) (87,523)
Profit before income tax 29,643 27,636 13,091 6,424
Effective tax charge at 28% 8,300 7,738 3,665 1,799
Non taxable gain (1,082) (1,723) (447) (491)
Non taxable income (2,251) (2,083) (6) (300)
Associates results reported net of tax (787) - - -
Non deductible dividend 910 1,950 910 1,950
Change in depreciation rates - 105,921 - 15,526
Re-measurement of deferred tax - change in tax rate - (8,140) - (732)
Change in corporate tax rate - 510 - 85
Expenses not deductible for tax purposes 1,081 408 28 69
Adjustments in respect of prior periods (731) (1,067) 95 (41)
Total income tax charge 5,440 103,514 4,245 17,865
As a result of the change in the New Zealand corporate tax rate from 30% to 28% effective from 2012, the relevant deferred tax balances expected to reverse in future periods have been measured using the effective tax rate of 28%.
As a result of the change in tax legislation enacted on 27 May 2010, with effect from the beginning of the 2011/12 income year, the depreciation rate on buildings with an estimated useful life of 50 years or more was reduced to 0%. This reduction in the depreciation rate has significantly reduced the tax base of the Parent and Group's buildings as future tax deductions for building depreciation will no longer be available. This resulted in an increase in the deferred tax liability in relation to buildings in the Parent of $15,526,000, and in the Group of $105,921,000, which was recognised in the tax expense in 2011.
FOODSTUFFS (AUCKLAND) LIMITED
Notes to the Summary Financial Statements CONTINUED for the period ended 26 February 2012
0000000029
4. Related party transactions
(a) Transactions with related parties
Foodstuffs (Auckland) Limited operates as a co-operative and predominantly trades with members. All transactions are conducted on normal trading terms and conditions. Virtually all sales of the Parent company and rental charges are made to members. On a Group level approximately $3,607,601,000 (2011: $3,439,877,000) of revenue represents sales to and rental from members. Within other income, services to members were $23,445,000 (2011: $21,735,000).
(b) Outstanding balances at balance date with related parties
The Parent company advances funds to subsidiaries, members and associate companies in the normal course of business at commercial lending rates. All loans are secured and repayable on demand. No related party debts have been written off. All of the interest received shown in the Parent company's statement of comprehensive income was from members or subsidiary companies.
Group Group Parent Parent
2012 2011 2012 2011
$000 $000 $000 $000
Loans to members 62,093 62,693 61,642 63,753
Loans to Associates 24,326 8,442 19,316 9,903
Receivable from Subsidiaries - - 111,635 77,947
Receivable from Other related companies 1,681 11,217 1,680 7,728
Related party receivables 88,100 82,352 194,273 159,331
Payable to Subsidiaries - - 13,202 -
Payable to Associates 13,478 11,072 13,478 11,072
Payable to Other related companies 572 1,512 571 452
Related party payables 14,050 12,584 27,251 11,524
Loans to members are due within one year and the rate of interest is determined over the period at the floating rate existing at that time. The average floating rate at balance date was 5.3% (2011: 5.8%). Directors of the Company are also store owners and as such may receive loans under the same terms and conditions as other loans to members. At balance date these amounted to $nil (2011: $nil).
(c) Rebate Investment Vouchers
Vouchers mature five years after first being issued. An amount of $37,457,000 (2011:$36,274,000) is due for payment within twelve months subject to Directors' approval. An initial interest rate of 8% per annum (2011:8%) is paid in cash or compounded. The rate of interest is subject to review periodically by the Board of Directors.
(d) Guarantees Group and Parent
2012 2011
$000 $000
Guarantees for members’ bank borrowings 248,954 233,605
The Group acts as a guarantor for a number of members' bank loans. The Group is obligated under the guarantee to make the loan payments in the event the member defaults on a loan agreement. The Group generally holds first debenture security over the assets and prudently manages exposures. The Directors do not expect any cash outflows under the guarantees in place based on a review of the current financial situation of members.
FOODSTUFFS (AUCKLAND) LIMITED
Notes to the Summary Financial Statements CONTINUED for the period ended 26 February 2012
Foodstuffs (Auckland) Limited - Annual Report 2012
(e) Investment in Subsidiaries
The Group's principal subsidiaries are:
Share of issued capital and voting rights
Businessactivity
2012 2011
Equity Funding Limited Investment 100% 100%
Foodstuffs (Auckland) Nominees Limited Investment 100% 100%
Foodstuffs (Auckland) Systems & Technology Leasing Limited Leasing 100% 100%
Foodstuffs Finance (Auckland) Limited Funding 100% 100%
Foodstuffs Fresh (Auckland) Limited Distribution 100% 100%
James Gilmour & Co Limited Wholesaling 100% 100%
Merchant Property Management Limited Property management 100100% 100%
Route & Retail Distribution Limited Transport 100% 100%
The National Trading Company of New Zealand Limited Retail property 100% 100%
Interests in subsidiaries
Parent Parent
2012 2011
$000 $000
Shares at cost 14,865 14,865
f) Investment in Associates
The Group's principal associates are:
ReportingDate
Businessactivity
2012
2011
The Bell Tea & Coffee Company Limited 31 March Grocery 33% 33%
Foodstuffs (NZ) Limited 30 June Brand management 33% 33%
Foodstuffs Liquor New Zealand Limited 31 March Retail 33% 33%
Foodstuffs Own Brands Limited 28 February Procurement 33% 33%
Foodstuffs Inbound Limited 31 March Transport 33% 33%
Foodstuffs Retail Financial Services Limited 31 March Financial services 33% 33%
Manukau Cash'n Carry Limited 28 February Wholesaling 0% 50%
Panmure Cash'n Carry Limited 28 February Wholesaling 50% 50%
Rotorua Cash'n Carry Limited 28 February Wholesaling 50% 50%
Tauranga Cash'n Carry Limited 28 February Wholesaling 50% 50%
Henderson Cash'n Carry Limited 28 February Wholesaling 0% 50%
FOODSTUFFS (AUCKLAND) LIMITED
Notes to the Summary Financial Statements CONTINUED for the period ended 26 February 2012
Share of issued capital and voting rights
All associate companies are incorporated and domiciled in New Zealand.
0000000031
Group2012
Group2011
Parent 2012
Parent 2012
$000 $000 $000 $000
Interests in Associates
Carrying value at 1 March 2010 18,891 18,242 11,545 12,160
Acquisition of additional shares in associates 350 760 - -
Acquisition of remaining shares in associates - (2,250) - (2,250)
Reversal of impairment in investment in associate 45 1,635 1,595 1,635
Sale of associates (997) - - -
Group's share of associates profit 2,810 504 - -
Dividends received or declared (1,105) - - -
Carrying value at end of period 19,994 18,891 13,140 11,545
Disposals
Total cash received 2,420 - - -
Net liabilities disposed of (2,324) - - -
Profit on disposal 4,744 - - -
In the period the Group sold its remaining 50% holding in the Gilmours Henderson and Manukau businesses for total consideration of $2,420,000.
Group2012
Group2011
$000 $000
Results of associate companies
Share of earnings before income tax 4,123 883
Income tax (1,313) (379)
Net earnings 2,810 504
The Group's share of the results of its principal associates, all of which are unlisted, and its aggregated assets and liabilities are as follows:
Assets Liabilities Revenues Profit
$000 $000 $000 $000
Associates
2012 44,511 25,283 111,440 2,810
2011 46,806 27,915 86,731 504
FOODSTUFFS (AUCKLAND) LIMITED
Notes to the Summary Financial Statements CONTINUED for the period ended 26 February 2012
Foodstuffs (Auckland) Limited - Annual Report 2012
Group2012
Group2011
Parent 2012
Parent 2012
$000 $000 $000 $000
Interests in Associates
Carrying value at 1 March 2010 18,891 18,242 11,545 12,160
Acquisition of additional shares in associates 350 760 - -
Acquisition of remaining shares in associates - (2,250) - (2,250)
Reversal of impairment in investment in associate 45 1,635 1,595 1,635
Sale of associates (997) - - -
Group's share of associates profit 2,810 504 - -
Dividends received or declared (1,105) - - -
Carrying value at end of period 19,994 18,891 13,140 11,545
Disposals
Total cash received 2,420 - - -
Net liabilities disposed of (2,324) - - -
Profit on disposal 4,744 - - -
In the period the Group sold its remaining 50% holding in the Gilmours Henderson and Manukau businesses for total consideration of $2,420,000.
Group2012
Group2011
$000 $000
Results of associate companies
Share of earnings before income tax 4,123 883
Income tax (1,313) (379)
Net earnings 2,810 504
The Group's share of the results of its principal associates, all of which are unlisted, and its aggregated assets and liabilities are as follows:
Assets Liabilities Revenues Profit
$000 $000 $000 $000
Associates
2012 44,511 25,283 111,440 2,810
2011 46,806 27,915 86,731 504
Directory
DirectorsRobert Redwood (Chairperson)
Dean Waddell (Deputy Chairperson)
Murray Jordan
Paul Blackwell
Garry Christini
Glenn Cotterill
Brian Frecker
Glenn Miller
John Smith
Neil Foster
Senior ExecutivesMike Brooker
Angela Bull
Rob Chemaly
Gijs Faber
Elizabeth Jeffs
Peter Muggleston
David Stewart
Audit & Risk CommitteeGlenn Cotterill (Chairperson)
Robert Redwood
John Smith
Paul Blackwell
Operator Approval CommitteeRobert Redwood (Chairperson)
Glenn Miller
Gary Christini
Dean Waddell
Murray Jordan
Rob Chemaly
Elizabeth Jeffs
Jack Dill-Russell
Remuneration CommitteeRobert Redwood
Brian Frecker
Dean Waddell
Training & Development CommitteeRobert Redwood (Chairperson)
Elizabeth Jeffs
Daniel Brain
Robert Bryce
David Collins
Jamie Eden
Lance Gerlach
Rob Chemaly
Jack Dill-Russell
New World CommitteeJason Witehira (Chairperson)
Ewan Atherton (Deputy Chairperson)
Garry Christini (Board Representative)
Lance Gerlach
Suresh Chimanlal
Jamie Eden
Brendon Good
Malcolm Boyd
Graham Fabian
Four Square CommitteeMark Cramond (Chairperson)
Peter Pritchard (Deputy Chairperson)
John Smith (Board Representative)
Steve Duffield
Peter Jones
Daniel Brain
Peter Lynch
Wendy Porter
Juanita McGoldrick
BankersANZ National Bank Limited
ASB Bank Limited
Bank of New Zealand
Westpac Banking Corporation
External AuditorsPricewaterhouseCoopers
Internal AuditorsErnst & Young
SolicitorsDLA Phillips Fox
Registered Office60 Roma Road
Mount Roskill
Auckland
0000000033