ANNUAL REPORT2015
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PRIVATE
PUBLIC
V E N T U R E S
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1
QUICK RESULT 2
CHAIR’S REVIEW 3
CEO’S REPORT 5
PRIVATE INVESTMENTS 10
BOARD OF DIRECTORS 13
FINANCIAL STATEMENTS 14
SUPPLEMENTARY INFORMATION 55
SHARE BUYBACK DISCLOSURE 56
DIRECTORY 60
OUR CORNERSTONE SHAREHOLDER - JR MCKENZIE TRUST 61
29 JUN 2015
FY15 FINAL DIVIDEND PAID
27¢ PER SHARE
ANNUAL GENERAL MEETING CHANCELLOR 3, LEVEL 16
JAMES COOK HOTEL 147 THE TERRACE
WELLINGTON
4:30PM
3 AUG 2015
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10 YEAR RELATIVE PERFORMANCE ($1 INVESTMENT)
2015 2014
ASSESSED ASSET BACKING $200.5M $198.4MTOTAL SHAREHOLDER RETURN 5.2% 9.5%DIVIDENDS PAID $8.1M $7.8M
2
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
.Rangatira NZX 50 ASX Net Total Return Average Growth Fund
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CHAIR’S REVIEWSince J.R. McKenzie established Rangatira in 1937, our goal has
been to deliver market competitive capital returns and steadily
increasing dividends to our shareholders. We have achieved
this goal consistently over many decades, with the past 10
years showing a compound annual growth rate of 10.7%.
In the year under review, however, Total Shareholder Return
was 5.2%. While this figure falls short of our historical
performance, it reflects the unique set of circumstances
we faced in the 2015 financial year (FY2015) with a high cash
balance following the sale of Contract Resources, and low cash
deposit rates.
In addition, it was pleasing to see that as a result of a number of
initiatives we put in place to deliver for shareholders over the
long term, we made significant gains in the second half of the
year that offset a challenging first half year. These included:
• working with our managers and co-investors to improve the
performance of our private businesses, and
• focusing on finding new investment opportunities in order to
put all of our capital to work. Rangatira continues to hold a
strong balance sheet, and we are ready to take advantage of
further market opportunities we identify for the benefit of
our shareholders.
We remain optimistic about the New Zealand economy, despite
some headwinds from our key trading partners in Australia
and China. In more specific terms, we see good investment
opportunities for Rangatira in New Zealand’s middle market,
where businesses have between $10-$150M in revenues. If
we can realise the potential to grow these middle market
businesses, in the way that, for example, we have worked with
Hellers, then we are confident we can continue to generate
above average returns for our shareholders.
“IF WE CAN REALISE THE POTENTIAL TO GROW THESE MIDDLE MARKET BUSINESSES...WE CAN CONTINUE TO GENERATE ABOVE AVERAGE RETURNS FOR OUR SHAREHOLDERS”
3
David Pilkington Chair
Phil Veal CEO
Phil Veal Chief Executive
Chris Bradshaw CFO
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The Rangatira Board declared a final, fully imputed dividend
of 27 cents per share, making the total dividend for FY2015
47 cents per share, up from 46 cents per share last year. The
Board also assessed the asset backing per share at $11.32 per
share (up from $11.20 per share at 31 March 2014), based on the
Directors’ valuation of Rangatira’s total equity of $200.5M
After shareholder approval at last year’s Annual Meeting to
allow the company to buy back its shares, several bids were
lodged in the market. However, no bids were accepted. We will
continue to pursue opportunities to buy back our shares when
the market trades at prices less than 80% of assessed asset
backing per share.
Shareholders will note we have refreshed the Rangatira logo
and added the word “Investments”. Our research showed that
few people recognise Rangatira and what it is we do. With the
refresh, our aim is to give our company a more contemporary
look and also to indicate clearly that we are an investment
company.
Earlier this year we farewelled Ian Frame and welcomed our
new Chief Executive, Phil Veal, who started in September
2014. Phil is an experienced business leader with a background
in mergers and acquisitions, management consulting, and
private equity. We are pleased to note that Phil has moved his
family from New York City to Wellington to take up the role at
Rangatira.
In addition to Phil and Ian, Rangatira has been well served
during the past year by Chris Bradshaw, our Chief Financial
Officer, plus Anton Labrooy, Vivienne Pearson, and Heidi
Jordan. Together with the teams (staff, managers, and board
directors) running our private portfolio companies, I thank them
all for their hard work over the course of the year.
David Pilkington
Chair
18 June 2015
2015 $m
2014 $m
Operating Earnings 9.2 8.0
Gains from Realisations of Investments
4.5 32.1
One-off Acquisition and Disposal Costs
- (0.7)
Net Profit after Tax 13.7 39.4
$ per share $ per share
Asset Backing from Annual Accounts
8.76 8.63
Additional Value of Private Investments (1)
2.56 2.57
Assessed Asset Backing 11.32 11.20
(1) Using the mid-point of the assessed additional value range. See page 5 for information
¢ per share ¢ per share
Change in Assessed Asset Backing
12 57
Dividends Paid (prior year final plus current year interim)
46 44
Total Return 58 101
Total Return on Assessed Asset Backing
5.2% 9.5%
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CHIEF EXECUTIVE’S REPORT I am honoured by the opportunity to return to New Zealand
and lead Rangatira into its ninth decade of investing in
growing New Zealand businesses. As I have learned more
about the history of Rangatira, under our founder Sir John
(“J.R.”) McKenzie and later the leadership of his son Sir Roy
McKenzie, I have been amazed at how much it has achieved to
date. In his autobiography Sir Roy talks about Rangatira’s early
investments in iconic New Zealand companies such as Wattie’s,
Montana Wines, and Skellerup. In our current portfolio, iconic
brands such as Hellers and Rainbow’s End stand out too. So I am
optimistic about Rangatira’s opportunities to build on J.R.’s and
Sir Roy’s legacy in the future.
While the FY2015 result was disappointing in terms of Total
Shareholder Return, operating earnings - a measure of our
ability to provide dividend flow for investors and generate free
cash flow for additional investment - were $9.2M last year, up
from $8.0M in FY2014.
The improved operational performance is a result of initiatives
we put in place in the second half of the year to drive
efficiencies in our portfolio of private companies, including
factory enhancements, refocusing on more valuable customers,
and strengthening the “customer experience” in some
businesses. These initiatives are also establishing a platform
for delivering further performance gains in future.
The Board has made clear to me that they expect to see a
material increase in our total return this year and in the future,
and I am committed to delivering it, both through ongoing
operational performance improvement and strategic new
investments. We see Rangatira as not only an institution that
serves its investors and their interests, but also a positive
contributor to the New Zealand economy in terms of increased
productivity and jobs.
PRIVATE INVESTMENTSOur private investments represent the majority of the capital
(63%) in our portfolio, and because of that we are focused on
driving great operational results in the businesses. Hellers is a
good example: it has grown into a market leader and become an
iconic New Zealand food brand.
In highlights this year, our investments in the tourism sector
(Rainbow’s End, Polynesian Spa) have performed well on the
back of better management and increased visitor numbers.
At Rainbow’s End, the team have done a great job improving
the visitor experience at the park, and getting more visitors
through the gate. We are also happy to note an improved
performance at Polynesian Spa, where revenues are growing on
the back of increased tourist traffic to Rotorua.
Our directors, working with our independent advisors,
have assessed the aggregate market value of our private
investments at 31 March 2015 to be between $32M and $58M
above the value at which they are included in our accounts
(additional value of private investments last year $33M to
$58M above).
PUBLIC INVESTMENTSOur public investments have enjoyed another productive year,
delivering 3.4% dividend flow in addition to 3.1% gain in market
value.
Our return from New Zealand stocks, including dividends, was
18.5% (5.0% more than the NZX50 Index), and our Australian
portfolio returned - 7.0% (15.6% less than the ASX200 Index
on a currency-adjusted basis). Our Global equities portfolio
returned 14.5%. The Australian return was adversely affected
by the AUD/NZD exchange rate and our large exposure to
resource stocks. We sold some of our resource stocks during
the year including BHP Billiton and Woodside Petroleum.
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Although we no longer have a direct investment in Xero, we
continue to have an interest. At the end of FY2015, this interest
was valued at $5.0M in the company through our private
investment in Valar Ventures.
CASH & SHORT TERM INVESTMENTSSince our sale of Contract Resources in FY2014, we have held
a proportion of our portfolio (16%) in cash and short-term
investments while we identify new investment opportunities
that match our criteria. While the return from this part of our
asset base has created a net drag on our overall performance,
it gives us the ability to move swiftly when we identify an
opportunity.
NEW ZEALAND SHARES2015
NZ$m2014
NZ$m
Fisher & Paykel Healthcare 4.6 3.0
Fletcher Building 3.0 3.5
Auckland Airport 1.7 1.6
Kiwi Property Group 1.5 1.3
Green Cross Health 1.2 0.7
Contact Energy 0.7 0.6
IkeGPS 0.5 0.5
Serko 0.1 0.1
Sky City - 1.9
Total 13.3 13.2
Our New Zealand public investments returned 18.5% in 2015.
AUSTRALIAN SHARES2015
NZ$m2014
NZ$m
B H P Billiton 4.2 8.2
Rio Tinto 3.8 4.5
Commonwealth Bank 3.3 2.9
Woodside Petroleum - 2.3
Wesfarmers 1.3 1.3
QBE Insurance 1.0 1.0
Treasury Wine Estates 0.6 0.4
RCR Tomlinson 0.6 0.6
Total 14.8 21.2
Our Australian public investments returned -7.0% in 2015.
INTERNATIONAL SHARES2015
NZ$m2014
NZ$m
Royal Dutch Shell 3.5 3.7
Reckitt Benckiser 3.3 2.7
BP 2.6 2.7
iShares – MSCI All Asia excl Japan Index Fund
2.1 1.6
iShares – MSCI China Index Fund
2.0 1.5
Twitter 0.7 -
Indivior 0.1 -
Total 14.3 12.2
Our International public investments returned 14.5% in 2015
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Private Cash & Short Term Investments Public
21%
16%
63%
7%7%7%
New Zealand
Australia
International
NEW INVESTMENTSWe have an ongoing focus on finding new investment
opportunities in order to put our capital to work. We are looking
for middle market New Zealand businesses with strong growth
prospects that have the ability to grow with Rangatira’s capital,
capabilities and connections.
For middle market businesses that have strong growth
prospects, Rangatira has a unique competitive advantage
over other private equity options because we invest our own
permanent capital and can therefore have a longer investment
timeframe. We also prefer to be a cornerstone investor, co-
investing with existing business owners and management, and
this underpins Rangatira’s ability to grow great New Zealand
businesses and improve shareholder returns.
With that in mind, we are actively identifying potential
investment prospects - focusing on middle market businesses
in New Zealand that have strong growth prospects - and
building relationships with business owners and potential co-
investors. We think we are an investment partner that middle
market New Zealand businesses should get to know. If you
know a business owner that would like to start a conversation
about their future, please introduce us.
Phil Veal
Chief Executive
18 June 2015
RANGATIRA PORTFOLIO AT 31 MARCH 2015
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AS SURE AS HELLERSOur unique partnership has helped Hellers grow to be the number one player in smallgoods, bacon, and ham in New Zealand. We invested in the business with Todd Heller and Nick Harris back in 2003. Nowadays, New Zealanders enjoy 28,000 tonnes of Hellers sausages, bacon and other products every year.
Over the past seven years Hellers has invested more than $35M expanding its factory in Kaiapoi, helping rebuild the Christchurch community devastated by the 2011 earthquake. The world-class 6,000 square meter plant employs 420 people. Hellers is now the largest purchaser of New Zealand pork, and also buys large quantities of beef, chicken and lamb from proud local suppliers in Canterbury and around New Zealand.
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Hellers produces bacon, ham and smallgoods for retail and
food service markets from its factories in Christchurch and
Auckland.
Hellers relaunched the Kiwi bacon brand as a free-farmed,
New Zealand bred product over the year. Acquired in the
Goodman Fielders Meats deal, the revival of the Kiwi brand is
an example of how Hellers’ hallmark authenticity can create
higher value for investors.
HELLERS
50%
Polynesian Spa provides a unique geothermal spa experience
on the shores of Lake Rotorua.
A new reflexology walk and a plunge pool were part of an
enhanced customer experience at Polynesian Spa this year.
Strong domestic tourism growth along with more international
tourists, especially from China, drove visitor numbers to over
300,000 - a new record.
POLYNESIAN SPA
51%
Rainbow’s End entertains nearly 400,000 guests a year at its
Manukau theme park.
Visitor numbers set a new record this year with the new
Stratosfear ride and Kidz Kingdom proving great attractions.
The team also collected awards including “Best of the Best”
Marketing at Westpac’s Auckland Business Awards, an
international Brass Ring Award for Best Innovation in a Training
Programme, and received a coveted Certificate of Excellence
from TripAdvisor.
RAINBOW’S END
100%
Auckland Packaging designs and manufactures point-of-sale
displays and packaging.
Auckland Packaging (APC) completed the installation of its
new, fully-automated 8-channel digital press. APC used this
new, room-sized colour printer to help launch Snap ’n Play for
Griffins Foods, which gave Griffins a store presence that helped
them beat sales forecasts, demonstrating the value of APC’s
new capabilities.
AUCKLAND PACKAGING
100%
OUR PRIVATE INVESTMENTS
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Tuatara crafts artisan beer at its brewery in Paraparaumu for
distribution to domestic and international markets.
With the slogan “brewed for people who are already witty and
attractive”, Tuatara launched Iti, the first low-alcohol craft
beer. Bolstered by strong demand, Tuatara has invested in
its Paraparaumu brewery to double capacity, and has opened
micro-brewery and tasting house The Third Eye in downtown
Wellington.
TUATARA
35%
Konnect Net provides technology solutions that connect
insurers and health provider in order to deliver services more
efficiently.
Every large New Zealand life insurer uses the Konnect Net
service, with a network extending to over 1,200 medical
practices. Konnect’s customers continue to see improved
operating efficiencies from using Konnect’s products.
KONNECT NET
17%
Magritek designs and manufactures benchtop Nuclear
Magnetic Resonance (NMR) solutions from bases in
Wellington and Aachen, Germany.
Spinsolve, Magritek’s flagship product, continues to have high
uptake in European and United States markets, with strong
double digit sales growth. In September 2014, Rangatira
boosted its stake in Magritek to 18%.
MAGRITEK
18%
New Zealand Pastures is a farming and fattening operation
based on 23,500ha of land in the South Island.
In moving to an owner-operator model this year, New Zealand
Pastures has shifted to value-added produce and invested in
irrigation to boost productivity. The company expects this to
deliver improved returns this year.
NEW ZEALAND PASTURES
8%
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Partners Life delivers a full suite of innovative, competitively
priced life and health insurance products to New Zealand
families and businesses.
Partners continues its strong growth as the second largest
writer of new business in life insurance, now covering over
100,000 New Zealanders. Its strong performance underlies the
value of having an industry-experienced management team in
executing a growth strategy.
PARTNERS LIFE
8%
Valar Ventures invests in high-growth New Zealand
businesses that can scale globally.
Xero, a Valar portfolio company, recently announced the
acquisition of its 500,000th customer - a major milestone
for the Wellington-based provider of “beautiful accounting
software”.
Valar is also invested in Auckland-based Vend, a provider of
Point-of-Sale software for over 15,000 retailers around the
world. Vend is one of just 24 companies to secure sales support
from Apple as part of their efforts to push mobile solutions to
businesses.
VALAR VENTURES
FUND
Movac is a leading New Zealand venture capital manager
investing in early stage companies.
Rangatira is invested in Movac’s Fund 3, with portfolio
companies including PowerbyProxi, Mesynthes, and Author-it.
Proxi achieved a win by helping to define the next generation of
wireless power transmission, and continues to pursue growth
opportunities with major manufactures offshore.
Another Fund 3 portfolio company, 1Above, is now selling their
jet-lag beating beverages in Australia and the United States.
MOVAC FUND 3
FUND
Icon Ventures (formerly known as JAFCO) is a specialty
venture capital investor focused on Series B rounds of United
States early stage companies.
Our 2014 investment in Icon has already realised a return with
the sale of MoPub to Twitter, giving Rangatira stock in Twitter.
The remainder of Icon’s portfolio, including leading United
States telehealth provider Teladoc, continues to track well.
ICON VENTURES
FUNDV E N T U R E S
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David Pilkington (Chair) Hellers (Chair), Tuatara Brewing, Remuneration Committee
Keith Gibson (Deputy Chair) Polynesian Spa (Chair), Audit Committee, Remuneration Committee
Nick Calavrias Auckland Packaging Company
Lindsay Gillanders Auckland Packaging Company (Chair), Audit (Chair)
Sophie Haslem Magritek Holdings, Rainbow’s End Theme Park
Sam Knowles Remuneration Committee
Richard Wilks Rainbow’s End Theme Park (Chair), Audit Committee
BOARD OF DIRECTORSThe Boards of subsidiary companies and major investments during the year include Rangatira directors as follows:
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Rangatira Group
CONSOLIDATED INCOME STATEMENTFor the year ended 31 March 2015
Note
Group 2015
$000
Group 2014
$000
Revenue 2 42,298 40,051
Other income 3 5,199 33,267
Share of profit for the year from associate companies 12 3,005 2,581
Total income 50,502 75,899
Impairment of intangible assets 14 - (1,000)
Depreciation expense 11 (2,347) (2,056)
Employee benefit expense 4 (14,162) (13,618)
Finance costs 4 (162) (256)
Cost of sales 4 (6,703) (7,085)
Consulting expense (434) (925)
Operating expenses 4 (9,111) (8,570)
Profit before tax 17,583 42,389
Tax expense 6 (2,859) (2,218)
Profit after tax 14,724 40,171
Profit attributable to
Equity holders of the Parent 13,744 39,429
Non-controlling interests 980 742
14,724 40,171
Basic and diluted earnings per share (cents) 20 77.6 222.6
The notes on pages 19 to 52 form part of, and should be read in conjunction with, the above statements.
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Rangatira Group
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME CONTINUEDFor the year ended 31 March 2015
Group 2015
$000
Group 2014
$000
Other comprehensive income
Available for sale investments
- valuation gain taken to equity 2,313 428
- transferred to income statement on sale (5,140) (2,300)
Share of reserves of associates (511) (90)
Other comprehensive (loss)/income recognised directly in equity (3,338) (1,962)
Profit after tax 14,724 40,171
Total comprehensive income for the year after tax 11,386 38,209
Total comprehensive income attributable to
Equity holders of the Parent 10,406 37,467
Non-controlling interests 980 742
11,386 38,209
The notes on pages 19 to 52 form part of, and should be read in conjunction with, the above statements.
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Rangatira Group
CONSOLIDATED STATEMENT OF CHANGES IN EQUITYFor the year ended 31 March 2015
2014 Note
Share capital
$000
Retained earnings
$000
Available for sale
investments revaluation
reserve $000
Foreign currency
hedge reserve
$000
Attributable to equity
holders of the Parent
$000
Attributable to non-
controlling interests
$000Total $000
Balance at the beginning of the year
17,712 85,769 20,073 204 123,758 810 124,568
Total comprehensive income/(loss) net of tax
- 39,429 (1,872) (90) 37,467 742 38,209
Dividends paid to non-controlling interests
- - - - - (926) (926)
Dividends paid to Parent shareholders
21 - (7,793) - - (7,793) - (7,793)
Sale of Contract Resources Limited
- - - (522) (522) - (522)
Balance at end of year 17,712 117,405 18,201 (408) 152,910 626 153,536
2015 Note
Share capital
$000
Retained earnings
$000
Available for sale
investments revaluation
reserve $000
Foreign currency
hedge reserve
$000
Attributable to equity
holders of the Parent
$000
Attributable to non-
controlling interests
$000Total $000
Balance at the beginning of the year
17,712 117,405 18,201 (408) 152,910 626 153,536
Total comprehensive income net of tax
- 13,744 (2,827) (511) 10,406 980 11,386
Dividends paid to non-controlling interests
- - - - - (999) (999)
Dividends paid to Parent shareholders
21 - (8,148) - - (8,148) - (8,148)
Balance at end of year 17,712 123,001 15,374 (919) 155,168 607 155,775
The notes on pages 19 to 52 form part of, and should be read in conjunction with, the above statements.
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Rangatira Group
CONSOLIDATED STATEMENT OF FINANCIAL POSITIONAs at 31 March 2015
Note
Group 2015
$000
Group 2014
$000
Current assets
Cash and cash equivalents 29,428 29,542
Trade receivables 7 2,827 3,077
Inventories 8 940 823
Tax receivable 6 341 457
Other current financial assets 9 21,549 20,310
Other current assets 10 494 346
Total current assets 55,579 54,555
Non-current assetsProperty, plant and equipment 11 24,525 22,106 Investments in associate companies 12 7,695 8,598 Goodwill 13 8,547 8,547 Deferred tax asset 6 244 362 Other non-current financial assets 9 70,278 70,006 Total non-current assets 111,289 109,619 Total assets 166,868 164,174
Current liabilitiesTrade and other payables 15 3,169 3,119 Borrowings 16 686 346 Tax payable 6 676 364 Provisions 17 1,333 1,189 Total current liabilities 5,864 5,018
Non-current liabilitiesBorrowings 16 2,977 3,327 Provisions 17 286 271 Deferred tax liability 6 1,966 2,022 Total non-current liabilities 5,229 5,620 Total liabilities 11,093 10,638 Net assets 155,775 153,536
EquityShare capital 18 17,712 17,712 Retained earnings 123,001 117,405 Available for sale investments revaluation reserve 15,374 18,201 Foreign currency hedge reserve (919) (408)Equity holders of the Parent 155,168 152,910 Attributable to non-controlling interests 607 626 Total equity 155,775 153,536
Approved for issue on behalf of the Board on 8 June 2015
DA Pilkington D K Gibson
The notes on pages 19 to 52 form part of, and should be read in conjunction with, the above statements.
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Rangatira Group
CONSOLIDATED STATEMENT OF CASHFLOWFor the year ended 31 March 2015
Note
Group 2015
$000
Group 2014
$000
Cash flows from operating activitiesCash was provided from: - Receipts from customers 37,670 35,120 - Dividends received 5,354 5,374 - Interest received 2,921 3,023
45,945 43,517 Cash was applied to: - Payments to suppliers and employees (30,466) (30,730) - Tax paid (2,369) (2,223) - Interest paid and other costs of finance (162) (275)
(32,997) (33,228)Net cash inflows from operating activities 28 12,948 10,289
Cash flows from investing activitiesCash was provided from: - Proceeds from sale of investments 6,445 56,702 - Proceeds from sale of property, plant and equipment 18 2,921
6,463 59,623 Cash was applied to: - Purchase of property, plant and equipment (4,872) (6,136) - Purchase of investments (5,506) (15,741)
(10,378) (21,877)Net cash inflows/(outflows) from investing activities (3,915) 37,746
Cash flows from financing activitiesCash was applied to: - Dividends paid to shareholders of Parent (8,148) (7,793) - Dividends paid to non-controlling interests (999) (926) - Repayment of borrowings - (13,977)
(9,147) (22,696)Net cash (outflows) from financing activities (9,147) (22,696)
Net (decrease)/increase in cash held (114) 25,339 Cash at beginning of year 29,542 4,203 Cash at end of year 29,428 29,542
Cash and cash equivalents 29,428 29,542
The notes on pages 19 to 52 form part of, and should be read in conjunction with, the above statements.
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Rangatira Group
NOTES TO THE FINANCIAL STATEMENTSFor the year ended 31 March 2015
NOTE 1 SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITYRangatira Limited is an investment company incorporated and
domiciled in New Zealand. Its principal activity is investment.
The Group consists of Rangatira Limited, its subsidiaries and
associates. The financial statements of Rangatira Group have
been prepared in accordance with the Companies Act 1993 and
the Financial Reporting Act 2013.
These financial statements were authorised for issue on 8 June
2015.
STATEMENT OF COMPLIANCEThe financial statements have been prepared in accordance
with Generally Accepted Accounting Practice in New Zealand
(“NZ GAAP”). They comply with New Zealand equivalents to
International Financial Reporting Standards (“NZ IFRS”) and
other applicable financial reporting standards as appropriate
for profit-oriented entities.
The financial statements comply with International Financial
Reporting Standards (“IFRS”).
BASIS OF PREPARATIONThe financial statements have been prepared on the basis of
historical cost except for the revaluation of certain non-current
assets and financial instruments outlined below.
Accounting policies are selected and applied in a manner which
ensures that the resulting financial information satisfies the
concepts of relevance and reliability, thereby ensuring that the
substance of the underlying transactions or other events is
reported.
The accounting policies set out below have been applied in
preparing the financial statements for the year ended 31 March
2015, and the comparative information presented in these
financial statements for the year ended 31 March 2014.
FUNCTIONAL AND PRESENTATION CURRENCYThe financial statements are presented in New Zealand dollars
(“NZD”), which is the Group’s functional currency, rounded to
the nearest $’000.
CRITICAL JUDGEMENTS IN APPLYING THE ENTITY’S ACCOUNTING POLICIESIn the process of applying the Group’s accounting policies,
management has made the following judgements that have had
the most significant effect on the amounts recognised in the
financial statements (apart from those involving estimations,
which are dealt with below).
Impairment TestingThere is a need to test for impairment of any tangible or
intangible assets as part of accounting policy note (r). The
valuation of financial assets and liabilities is subjective and
the valuations are done in accordance with accounting policy
notes (h), (i) and (j). Some equity investments are held at cost
because there is no quoted market price in an active market
and the fair value cannot be determined with any accuracy as
required under NZ IAS 39: Financial Instruments: Recognition
and Measurement.
Valuation of Unlisted InvestmentsUnlisted investments are recognised at cost in accordance
with NZ IAS 39: Financial Instruments: Recognition and
Measurement.
RAN002_annual_report_v2.indd 19 23/06/15 4:40 PM
20
KEY SOURCES OF ESTIMATION UNCERTAINTYThe preparation of the financial statements requires the Board
of Directors and management to make judgements, estimates
and assumptions that affect the application of accounting
policies and the reported amounts of assets, liabilities,
income and expenses. Actual results may differ from these
estimates. Estimates and underlying assumptions are reviewed
on an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimate is revised and in
any future periods affected.
In particular, information about significant areas of estimation
uncertainty in applying accounting policies that have the most
significant effect on the amount recognised in the financial
statements are described below.
Goodwill ImpairmentDetermining whether goodwill is impaired requires an
estimation of the value in use of the cash generating units to
which goodwill has been allocated. The value in use calculation
requires the entity to estimate the future cash flows expected
to arise from the cash generating unit and compare the net
present value of these cash flows using a suitable discount
rate to the carrying amount of the cash generating units’ assets
to determine if any impairment has occurred. Key areas of
judgement include deciding the long-term growth rate of the
applicable businesses and the discount rate applied to those
cash flows.
SIGNIFICANT ACCOUNTING POLICIESThe following significant accounting policies have been
adopted in the preparation and presentation of the financial
statements.
(a) Principles of consolidation
The Group financial statements are prepared by combining
the financial statements of Rangatira Limited and its
subsidiaries as defined in NZ IAS-27: Consolidated and
Separate Financial Statements. Consistent accounting
policies are employed in the preparation and presentation
of the financial statements.
Subsidiaries are entities controlled by the Group. Control
exists when the Group has the power to govern the financial
and operating policies of an entity so as to obtain benefits
from its activities. Associates are those entities in which
the Group has significant influence, but not control, over
the financial and operating policies.
In assessing control, potential voting rights that are
presently exercisable are taken into account. The financial
statements of subsidiaries are included in the financial
statements from the date that control and access to
variable returns of the investment commences until the
date that control ceases. The financial statements include
the information and results of each subsidiary from the
date on which the company obtains control and until such
time as the company ceases to control such subsidiary.
Subsequent to initial recognition, investments in
associates are accounted for under the equity method in
the Group financial statements.
In preparing the financial statements, all intercompany
balances and transactions, and unrealised profits arising
within the Group are eliminated in full.
The non-controlling interest is stated at the non-controlling
interests’ share of the fair values of the identifiable assets
and liabilities on acquisition together with the non-
controlling interests’ share of changes in equity since the
date of the acquisition.
Rangatira Group
NOTES TO THE FINANCIAL STATEMENTSFor the year ended 31 March 2015
NOTE 1 SIGNIFICANT ACCOUNTING POLICIES CONTINUED
RAN002_annual_report_v2.indd 20 23/06/15 4:40 PM
21
(b) Business combinations
Acquisitions of subsidiaries and businesses are accounted
for using the acquisition method. The cost of the business
combination is measured as the aggregate of the fair
values (at the date of exchange) of assets given, liabilities
incurred or assumed, and equity instruments issued by
the Group in exchange for control of the acquiree. The
acquiree’s identifiable assets, liabilities and contingent
liabilities that meet the conditions for recognition under
NZ IFRS 3 Business Combinations are recognised at their
fair values at the acquisition date, except for non-current
assets (or disposal groups) that are classified as held for
sale in accordance with NZ IFRS 5 Non-current Assets Held
for Sale and Discontinued Operations, which are recognised
and measured at fair value less costs to sell.
Goodwill arising on the acquisition of a subsidiary is
recognised as an asset at the date that control is acquired
(the acquisition date). Goodwill is measured as the excess
of the sum of the consideration transferred, the amount
of any non-controlling interest in the acquiree and the fair
value of the acquirer’s previously-held equity interest (if
any) in the acquiree over the fair value of the identifiable
net assets recognised. If, after reassessment, the Group’s
interest in the net fair value of the acquiree’s identifiable
assets, liabilities and contingent liabilities exceeds the
cost of the business combination, the excess is recognised
immediately in profit or loss.
The interest of non-controlling interests shareholders in
the acquiree is initially measured at the non-controlling
interests’ proportion of the net fair value of the assets,
liabilities and contingent liabilities recognised.
(c) Revenue recognition
Revenue is measured at the fair value of the consideration
received or receivable. The following specific accounting
policies are applied for the recognition of revenue:
(i) Sale of goods
Revenue from the sale of goods is recognised when the
Group has transferred to the buyer the significant risks
and rewards of ownership of the goods.
(ii) Rendering of services
Revenue from a contract to provide services is
recognised by reference to the stage of completion of
the contract at balance date.
(iii) Dividend revenue and interest revenue
Dividend revenue is recognised on the date that the
Group’s right to receive payment is established, which
in the case of quoted securities is the ex-dividend date.
Interest revenue is recognised on a time proportionate
basis that takes into account the effective yield on the
financial asset.
(d) Other income
Other gains/losses on the sale of investments and property,
plant and equipment are recognised when the risks and
rewards have transferred to the buyer.
(e) Foreign currency transactions
All foreign currency transactions during the financial year
are brought to account using the exchange rate in effect
at the date of the transaction. Foreign currency monetary
items at reporting date are translated at the exchange
rate existing at reporting date. Non-monetary assets and
liabilities carried at fair value that are denominated in
foreign currencies are translated at the rates prevailing
at the date when the fair value was determined. Exchange
Rangatira Group
NOTES TO THE FINANCIAL STATEMENTSFor the year ended 31 March 2015
NOTE 1 SIGNIFICANT ACCOUNTING POLICIES CONTINUED
RAN002_annual_report_v2.indd 21 23/06/15 4:40 PM
22
differences are recognised in the profit or loss in the period
in which they arise except for exchange differences on the
Group’s foreign operations assets and liabilities which
are recognised in the Group’s foreign currency translation
reserve.
(f) Goods and services tax (“GST”)
Revenues, expenses and assets are exclusive of GST,
except for receivables and payables which are recognised
inclusive of GST as invoiced.
(g) Inventories
Inventories, consisting of merchandise held for resale,
manufactured goods, manufacturing work in progress
and raw materials are valued at the lower of cost and
net realisable value determined on a first-in first-out
basis. Costs, including an appropriate portion of direct
overhead expenses, are assigned to inventory on-hand on
a weighted average basis. Net realisable value represents
the estimated selling price less all estimated costs of
completion and costs to be incurred in marketing, selling
and distribution.
(h) Financial assets
Cash and cash equivalents comprise cash on hand, cash in
banks and investments in money market instruments. Bank
overdrafts are shown within borrowings in current liabilities
in the statement of financial position.
Investments are recognised and derecognised on trade
date where the purchase or sale of an investment is under
a contract whose terms require delivery of the investment
within the timeframe established by the market concerned,
and are initially measured at fair value, net of transaction
costs.
Subsequent to initial recognition investments in associates
are accounted for under the equity method in the Group
financial statements.
Other financial assets are classified into the following
specified categories: financial assets ‘at fair value through
profit or loss’, ‘available for sale’ financial assets, and ‘loans
and receivables’. The classification depends on the nature
and purpose of the financial assets and is determined at
the time of initial recognition.
Financial assets at fair value through profit or loss
The Group has classified certain listed shares and
derivatives as financial assets at fair value through profit
or loss where the financial asset is held for trading. The
listed shares have been acquired principally for the purpose
of selling in the near future and the derivatives are not
designated and effective as hedging instruments. These
financial assets are at fair value, with any resultant gain or
loss recognised in the Consolidated Income Statement.
Available for sale financial assets
Certain shares and convertible notes are classified as being
‘available for sale’ and are stated at fair value. Investments
categorised as ‘available for sale’ does not assume that
the underlying business is saleable at the reporting date or
that its current shareholders have an intention to sell their
holding in the near future. Gains and losses arising from
changes in fair value are recognised in other comprehensive
income and accumulated as a separate component of
equity in the available for sale revaluation reserve, until the
investment is disposed of or is determined to be impaired,
at which time the cumulative gain or loss previously
recognised in the available for sale revaluation reserve
is reclassified from equity to profit or loss. Dividends
are recognised in profit or loss when the Group’s right to
receive the dividend is established.
Loans and receivables
Trade receivables, loans, and other receivables are
recorded at amortised cost less impairment.
Rangatira Group
NOTES TO THE FINANCIAL STATEMENTSFor the year ended 31 March 2015
NOTE 1 SIGNIFICANT ACCOUNTING POLICIES CONTINUED
RAN002_annual_report_v2.indd 22 23/06/15 4:40 PM
23
Fair value estimation
The fair value of financial instruments traded in active
markets is based on quoted market prices at the balance
date. The fair value of derivative financial instruments
and listed shares is based on quoted market prices where
available. Where such prices are not available use is made
of discounted cash flow analysis using the applicable yield
curve for the duration of the instruments.
The nominal value less estimated credit risk adjustments
of trade receivables is assumed to approximate their fair
values.
(i) Impairment of financial assets
Financial assets, other than those at fair value through
profit or loss, are assessed for indicators of impairment
throughout the year and at each balance date. Financial
assets are impaired where, there is objective evidence
that as a result of one or more events that occurred after
the initial recognition of the financial asset, the estimated
future cash flows of the investment have been impacted
or the fair value less the costs to sell the assets have been
impacted. For financial assets carried at amortised cost,
the amount of the impairment is the difference between
the asset’s carrying amount and the present value of
estimated future cash flows, discounted at the cost of
capital or the fair value in market of the assets.
The carrying amount of the financial asset is reduced by
the impairment loss directly for all financial assets with the
exception of trade receivables where the carrying amount
is reduced through the use of an allowance account. When
a trade receivable is uncollectible, it is written off against
the allowance account. Subsequent recoveries of amounts
previously written off are credited against the allowance
account. Changes in the carrying amount of the allowance
account are recognised in profit or loss.
With the exception of available for sale equity instruments,
if, in a subsequent period, the amount of the impairment
loss decreases and the decrease can be related objectively
to an event occurring after the impairment was recognised,
the previously recognised impairment loss is reversed
through profit or loss to the extent the carrying amount of
the investment at the date the impairment is reversed does
not exceed what the amortised cost would have been had
the impairment not been recognised. In respect of available
for sale equity securities, any subsequent increase in
fair value after an impairment loss is recognised in other
comprehensive income and accumulated as a separate
component of equity in the available for sale revaluation
reserve.
(j) Financial liabilities
Payables
Trade payables and other accounts payable are recognised
when the Group becomes obliged to make future payments
resulting from the purchase of goods and services.
The fair value of financial liabilities for disclosure purposes
is estimated by discounting the future contractual cash
flows at the current market interest rate that is available to
the Group for similar financial instruments.
Borrowings
All loans and borrowings are initially recognised at fair
value net of transaction costs. After initial recognition,
these loans and borrowings are subsequently measured
at amortised cost using the effective interest method.
Amortised cost is calculated taking into account any issue
costs and any discount or premium on drawdown.
The effective interest method is a method of calculating
the amortised cost of a financial liability and of allocating
interest expense over the relevant period. The effective
interest rate is the rate that exactly discounts estimated
future cash payments through the expected life of the
financial liability, or where appropriate, a shorter period, to
the net carrying amount of the financial instrument.
Borrowings are classified as current liabilities unless the
Group has an unconditional right to defer settlement of the
liability for at least 12 months after the balance date.
Rangatira Group
NOTES TO THE FINANCIAL STATEMENTSFor the year ended 31 March 2015
NOTE 1 SIGNIFICANT ACCOUNTING POLICIES CONTINUED
RAN002_annual_report_v2.indd 23 23/06/15 4:40 PM
24
(k) Derivative financial instruments
The Group enters into derivative financial instruments to
manage its exposure to foreign currency risk and interest
rate risk, including forward exchange contracts and interest
rate swaps.
Derivatives are initially recognised at fair value on the date
a derivative contract is entered into and are subsequently
remeasured to their fair value at each reporting date. The
resulting gain or loss is recognised in the Consolidated
Income Statement immediately. The Group has not
designated any derivatives as hedges as defined under
hedge accounting. A derivative is presented as non-current
if the maturity is over 12 months and current if the maturity
is less than 12 months.
(l) Property, plant and equipment
Property, plant and equipment is measured at cost less
accumulated depreciation and accumulated impairment
losses. Cost includes expenditure that is directly
attributable to the acquisition of the item.
Depreciation is provided on property, plant and equipment,
excluding land. Depreciation is calculated on a straight line
or diminishing value basis so as to write off the net cost of
each asset over its expected useful life to its estimated
residual value. Leasehold improvements are depreciated
over the period of the lease or estimated useful life,
whichever is the shorter, using the diminishing value or
straight line method. The estimated useful lives, residual
values and depreciation method are reviewed at the end of
each annual reporting period.
The principal rates (straight line or diminishing value) used
are:
• Freehold and leasehold buildings 1-4%
• Furniture and leasehold improvements 4-40%
• Plant and equipment 4-60%
The gain or loss arising on disposal or retirement is
determined as the difference between the sales proceeds
and carrying amount of the asset and is recognised in the
profit or loss.
(m) Non-current assets held for sale
Non-current assets and disposal groups are classified as
held for sale if their carrying amount will be recovered
principally through a sale transaction rather than through
continuing use. This condition is regarded as met only when
the sale is highly probable and the asset (or disposal group)
is available for immediate sale in its present condition.
Management must be committed to the sale, which should
be expected to qualify for recognition as a completed sale
within one year from the date of classification.
Non-current assets (and disposal groups) classified as
held for sale are measured at the lower of their previous
carrying amount and fair value less costs to sell.
(n) Leased assets
Leases are classified as finance leases wherever the terms
of the lease transfer substantially all the risks and rewards
of ownership to the lessee. All other leases are classified as
operating leases.
Leases
Assets held under finance leases are initially recognised at
their fair value or, if lower, at amounts equal to the present
value of the minimum lease payments, each determined
at the inception of the lease. The corresponding liability
to the lessor is included in the balance sheet as a finance
lease obligation. Lease payments are apportioned between
finance charges and reduction of the lease obligation so
as to achieve a constant rate of interest on the remaining
balance of the liability. Finance charges are charged directly
to the Consolidated Income Statement.
Finance leased assets are amortised on a straight line basis
over the estimated useful life of the asset or the lease
term, which ever is shorter.
Rangatira Group
NOTES TO THE FINANCIAL STATEMENTSFor the year ended 31 March 2015
NOTE 1 SIGNIFICANT ACCOUNTING POLICIES CONTINUED
RAN002_annual_report_v2.indd 24 23/06/15 4:40 PM
25
Operating lease payments are recognised as an expense
on a straight line basis over the lease term, except where
another systematic basis is more representative of the
time pattern in which economic benefits from the leased
asset are consumed.
Lease incentives
In the event that lease incentives are received to enter
into operating leases, such incentives are recognised
as a liability. The aggregate benefits of incentives are
recognised as a reduction of rental expense on a straight
line basis, except where another systematic basis is more
representative of the time pattern in which economic
benefits from the leased asset are consumed.
(o) Borrowing costs
Borrowing costs directly attributable to the acquisition,
construction or production of qualifying assets that
necessarily take a substantial period of time to get ready
for their intended use or sale, are added to the cost of those
assets, until such time as the assets are substantially ready
for their intended use or sale. All other borrowing costs are
recognised in the Consolidated Income Statement in the
period in which they are incurred.
(p) Intangible assets
Trademarks and software are finite life intangibles and
are recorded at cost less accumulated amortisation
and accumulated impairment losses. Amortisation for
trademarks and software is charged on a straight line
basis over their estimated useful lives. Amortisation for
developments costs is charged on a volume of sales basis.
The estimated useful life and amortisation method is
reviewed at the end of each annual reporting period.
The principal rates used are:
• Trademarks 10-50%
• Software 10-50%
Expenditure on research activities is recognised as an
expense in the period in which it is incurred. An internally
generated intangible asset arising from development
(or from the development phase of an internal project)
is recognised if, and only if, all of the following are
demonstrated:
• The technical feasibility of completing the intangible
asset so that it will be available for use or sale;
• The intention to complete the intangible asset and use or
sell it;
• The ability to use or sell the intangible asset;
• How the intangible asset will generate probable future
economic benefits;
• The availability of adequate technical, financial and other
resources to complete the development and to use or sell
the intangible asset; and
• The ability to measure reliably the expenditure
attributable to the intangible asset during its
development.
All intangible assets acquired in a business combination are
identified and recognised separately from goodwill where
they satisfy the definition of an intangible asset and their
fair value can be measured reliably.
(q) Goodwill
Goodwill arising on the acquisition of a subsidiary is
recognised as an asset at the date that control is acquired
(the acquisition date). Goodwill is measured as the excess
of the sum of the consideration transferred, the amount
of any non-controlling interest in the acquiree and the fair
value of the acquirer’s previously-held equity interest (if
any) in the acquiree over the fair value of the identifiable
net assets recognised. Goodwill is not amortised, but
tested for impairment annually and whenever there is
an indication that the goodwill may be impaired. Any
impairment is recognised immediately in the Income
Statement and is not subsequently reversed. Refer also to
accounting policy note (r).
Rangatira Group
NOTES TO THE FINANCIAL STATEMENTSFor the year ended 31 March 2015
NOTE 1 SIGNIFICANT ACCOUNTING POLICIES CONTINUED
RAN002_annual_report_v2.indd 25 23/06/15 4:40 PM
26
(r) Impairment of assets
At each reporting date, the Group reviews the carrying
amounts of its tangible and intangible assets to determine
whether there is any indication that those assets have
suffered an impairment loss. If any such indication exists,
the recoverable amount of the asset is estimated in order
to determine the extent of the impairment loss (if any).
Where the asset does not generate cash flows that are
independent from other assets, the Group estimates the
recoverable amount of the cash generating unit to which
the asset belongs.
Goodwill and intangible assets not yet available for use are
tested for impairment annually and whenever there is an
indication that the asset may be impaired. Any impairment
of goodwill is not subsequently reversed.
Recoverable amount is the higher of fair value less costs to
sell and value in use. In assessing value in use, the estimated
future cash flows are discounted to their present value
using a pre-tax discount rate that reflects current market
assessments of the time value of money and the risks
specific to the asset for which the estimates of future cash
flows have not been adjusted.
If the recoverable amount of an asset (or cash generating
unit) is estimated to be less than its carrying amount, the
carrying amount of the asset (or cash generating unit) is
reduced to its recoverable amount. An impairment loss is
recognised in profit or loss immediately, unless the relevant
asset is carried at fair value, in which case the impairment
loss is treated as a revaluation decrease.
Where an impairment loss subsequently reverses, other
than for goodwill, the carrying amount of the asset or
cash generating unit is increased to the revised estimate
of its recoverable amount, but only to the extent that
the increased carrying amount does not exceed the
carrying amount that would have been determined had no
impairment loss been recognised for the asset (or cash
generating unit) in prior years. A reversal of an impairment
loss is recognised in the Income Statement immediately,
unless the relevant asset is carried at fair value, in which
case the reversal of the impairment loss is treated as a
revaluation increase.
(s) Income tax
Current Tax
Current tax is calculated by reference to the amount of
income taxes payable or recoverable in respect of the
taxable profit or tax loss for the period. It is calculated
using tax rates and tax laws that have been enacted or
substantively enacted by reporting date. Current tax for
current and prior periods is recognised as a liability (or
asset) to the extent that it is unpaid (or refundable).
Deferred Tax
Deferred tax is accounted for using the comprehensive
balance sheet liability method in respect of temporary
differences arising from differences between the carrying
amount of assets and liabilities in the financial statements
and the corresponding tax base of those items.
In principle, deferred tax liabilities are recognised for all
taxable temporary differences. Deferred tax assets are
recognised to the extent that it is probable that sufficient
taxable amounts will be available against which deductible
temporary differences or unused tax losses and tax offsets
can be utilised. However, deferred tax assets and liabilities
are not recognised if the temporary differences giving rise
to them arise from the initial recognition of assets and
liabilities (other than as a result of a business combination)
which affects neither taxable income nor accounting profit.
Furthermore, a deferred tax liability is not recognised in
relation to taxable temporary differences arising from
goodwill.
Deferred tax liabilities are recognised for taxable
temporary differences arising on investments in
subsidiaries and associates except where the Group is
able to control the reversal of the temporary differences
and it is probable that the temporary differences will not
Rangatira Group
NOTES TO THE FINANCIAL STATEMENTSFor the year ended 31 March 2015
NOTE 1 SIGNIFICANT ACCOUNTING POLICIES CONTINUED
RAN002_annual_report_v2.indd 26 23/06/15 4:40 PM
27
reverse in the foreseeable future. Deferred tax assets
arising from deductible temporary differences associated
with these investments and interests are only recognised
to the extent that it is probable that there will be sufficient
taxable profits against which to utilise the benefits of the
temporary differences and they are expected to reverse in
the foreseeable future.
Deferred tax assets and liabilities are measured at the
tax rates that are expected to apply to the period(s) when
the asset and liability giving rise to them are realised or
settled, based on tax rates (and tax laws) that have been
enacted or substantively enacted by reporting date. The
measurement of deferred tax liabilities and assets reflects
the tax consequences that would follow from the manner in
which the Group expects, at the reporting date, to recover
or settle the carrying amount of its assets and liabilities.
Deferred tax assets and liabilities are offset when they
relate to income taxes levied by the same taxation
authority and the Group intends to settle its current tax
assets and liabilities on a net basis.
Current and deferred tax for the period
Current and deferred tax is recognised as an expense or
income in the Income Statement, except when it relates
to items recognised in other comprehensive income or
directly to equity, in which case the deferred tax or current
tax is also recognised in other comprehensive income
or directly in equity, or where it arises from the initial
accounting for a business combination, in which case it
is taken into account in the determination of goodwill or
excess.
(t) Employee benefits
Provision is made for benefits accruing to employees in
respect of wages and salaries, annual leave, long service
leave, and sick leave when it is probable that settlement
will be required and they are capable of being measured
reliably.
Provisions made in respect of employee benefits expected
to be settled within 12 months are measured at their nominal
values using the remuneration rate expected to apply at the
time of settlement. Provisions made in respect of employee
benefits which are not expected to be settled within 12
months are measured as the present value of the estimated
future cash flows to be made by the Group in respect of
services provided by employees up to reporting date.
(u) Cash flow statement
The cash flow statement is prepared exclusive of
GST, which is consistent with the method used in the
Consolidated Income Statement. Cash flows are included in
the cash flow statement on a net basis.
Definition of terms used in the cash flow statement:
Cash and cash equivalents includes cash on hand, demand
deposits, and other short term highly liquid investments
that are readily convertible to a known amount of cash and
are subject to an insignificant risk of change in value.
Operating activities include all transactions and other
events that are not investing or financing activities.
Investing activities are those activities relating to the
acquisition and disposal of current and non-current
investments and any other non current assets.
Financing activities are those activities relating to changes
in the equity and debt capital structure of the Group and
those activities relating to the cost of servicing the Group’s
equity capital.
(v) Earnings per share
The Group presents basic earnings per share (EPS) data for
its ordinary shares. Basic EPS is calculated by dividing the
profit or loss attributable to ordinary shareholders of the
Group by the weighted average number of ordinary shares
outstanding during the period. There are no dilutive equity
instruments in the Group so basic earnings per share and
diluted earnings per share are the same.
Rangatira Group
NOTES TO THE FINANCIAL STATEMENTSFor the year ended 31 March 2015
NOTE 1 SIGNIFICANT ACCOUNTING POLICIES CONTINUED
RAN002_annual_report_v2.indd 27 23/06/15 4:40 PM
28
(w) Government grants
The Group receives grants from various government
agencies in the normal course of business. Government
grants have been recognised as income over the period
necessary to match them with the costs they are intended
to compensate. The grants from government agencies
are recognised as revenue in the Consolidated Income
Statement at the same time the associated expenditure is
recognised.
(x) Standards and interpretations effective in the current
period
Those with disclosure impact:
The impact of adoption of the following standards and
amendments has been to expand the disclosures provided
in these financial statements or has had no impact:
Standard Standard name
NZ IAS 32 Amendments to NZ IAS 32 ‘Financial Instruments: Presentation’ – Offsetting Financial Assets and Financial Liabilities
NZ IFRS 10 Amendments to NZ IFRS 10 ‘Consolidated Financial Statements’
NZ IFRS 12 Disclosure of Interests in Other Entities
NZ IAS 27 Separate Financial Statements
NZ IFRIC 21 Levies
(y) Standards or interpretations not yet effective
At the date of authorisation of these financial statements
various standards, amendments and interpretations have
been issued by the External Reporting Board but have not
been adopted by the Group as they are not yet effective.
Application of the below standards, amendments and
interpretations, is not expected to have a material impact
on the Group’s financial position, results or disclosures in
the period of initial application.
Standard/Interpretation
Effective for annual reporting periods beginning on or after
Expected to be initially applied in the financial year ending
NZ IFRS 9 ‘Financial Instruments’
1 January 2018 31 March 2019
NZ IFRS 15 ‘Revenue from Contracts with Customers’
1 January 2016 31 March 2017
Amendments to NZ IFRS 11 ‘Joint Arrangements’
1 January 2015 31 March 2016
Amendments to NZ IFRS 10 ‘Consolidated Financial Statements’ and NZ IAS 28 ‘Investments in Associates’
1 January 2015 31 March 2016
Amendments to NZ IAS 1 – Presentation of Financial Statements
1 January 2015 31 March 2016
Rangatira Group
NOTES TO THE FINANCIAL STATEMENTSFor the year ended 31 March 2015
NOTE 1 SIGNIFICANT ACCOUNTING POLICIES CONTINUED
RAN002_annual_report_v2.indd 28 23/06/15 4:40 PM
29
Rangatira Group
NOTES TO THE FINANCIAL STATEMENTSCONTINUEDFor the year ended 31 March 2015
NOTE 2 REVENUE Group 2015
$000
Group 2014
$000
Revenue from the sale of goods 17,295 17,345
Revenue from the rendering of services 20,195 17,711
Dividends:
- Other entities 1,822 1,919
Interest revenue:
- Other loans and receivables 1,008 1,257
- Related parties 1,902 1,719
Rental Income 76 100
Total revenue 42,298 40,051
NOTE 3 OTHER INCOME Group 2015
$000
Group 2014
$000
(Loss) on disposal of property, plant and equipment (89) -
Gain on disposal of investments 4,966 33,165
Change in fair value of financial assets/liabilities classified as fair value through profit or loss
322 (71)
Other - 173
Total other income 5,199 33,267
RAN002_annual_report_v2.indd 29 23/06/15 4:40 PM
30
Group 2015
$000
Group 2014
$000
Profit before tax has been arrived at after charging the following expenses:
Cost of sales 6,703 7,085
Finance costs:
- Interest on loans 147 164
- Other interest expense 15 92
162 256
Employee benefit expense:
- Kiwisaver employer contributions 258 210
- Other employee benefits 13,904 13,408
Total employee benefit expenses 14,162 13,618
Fees paid to auditors:
- Audit of the financial statements 110 110
- Other non-audit services (i) 12 20
122 130
Donations 3 3
Operating lease rental expense 2,399 2,294
Repairs and maintenance 1,066 966
Freight and travel 435 390
Other expenses 5,086 4,787
Total operating expenses 9,111 8,570
(i) A subsidiary received advice on tax from Deloitte.
Rangatira Group
NOTES TO THE FINANCIAL STATEMENTSCONTINUEDFor the year ended 31 March 2015
NOTE 4 PROFIT BEFORE TAX
RAN002_annual_report_v2.indd 30 23/06/15 4:40 PM
31
Rangatira Group
NOTES TO THE FINANCIAL STATEMENTSCONTINUEDFor the year ended 31 March 2015
NOTE 5 INCOME AND EXPENSES RELATING TO FINANCIAL INSTRUMENTS
NOTE
Group 2015
$000
Group 2014
$000
Profit for the year includes the following income and expenses arising from movements in the carrying amounts of financial instruments:
Financial assets at fair value through profit and loss:
Change in fair value of financial assets at fair value through profit or loss (held for trading)
Equity investments 320 (68)
320 (68)
Loans and receivables:
Interest revenue 2 2,910 2,976
2,910 2,976
Available for sale investments:
Dividend revenue 2 1,822 1,919
1,822 1,919
Financial liabilities at fair value through profit and loss:
Change in fair value of financial liabilities at fair value through profit or loss (held for trading)
Foreign exchange 2 (3)
2 (3)
Financial liabilities at amortised cost:
Interest expense 4 162 256
162 256
RAN002_annual_report_v2.indd 31 23/06/15 4:40 PM
32
Group 2015
$000
Group 2014
$000
Income tax recognised in profit or loss
Profit before tax 17,584 42,389
Prima facie tax at 28% 4,924 11,869
Tax effects of temporary differences:
- Non deductible expenditure 64 184
- Non assessable income (2,188) (9,839)
- Unutilised tax losses (3) (29)
- Prior period adjustment 62 33
Tax expense 2,859 2,218
Income tax expense is comprised of:
Current tax 2,797 2,335
Deferred tax 62 (117)
Tax expense 2,859 2,218
Current tax assets/(liabilities)
Tax receivable 341 458
Tax payable (676) (364)
(335) 94
Deferred tax asset
Temporary differences 244 362
244 362
Deferred tax liability
Temporary differences 1,966 2,022
1,966 2,022
Imputation credit account
Balance at end of year 2,149 2,333
The availability of imputation credits is subject to the requirements of New Zealand tax legislation continuing to be met.
Rangatira Group
NOTES TO THE FINANCIAL STATEMENTSCONTINUEDFor the year ended 31 March 2015
NOTE 6 TAX EXPENSE
RAN002_annual_report_v2.indd 32 23/06/15 4:40 PM
33
2014
Opening balance
$000
Charged to income
$000Acquistions
$000
Closing balance
$000
Gross deferred tax liabilities:
Property, plant and equipment 2,067 (45) - 2,022
2,067 (45) - 2,022
Gross deferred tax assets:
Provisions 268 66 - 334
Doubtful debts and impairment losses 12 (12) - -
Financial assets at fair value through profit or loss 6 19 - 25
Other 4 (1) - 3
290 72 - 362
2015
Opening balance
$000
Charged to income
$000Acquistions
$000
Closing balance
$000
Gross deferred tax liabilities:
Property, plant and equipment 2,022 (56) - 1,966
2,022 (56) - 1,966
Gross deferred tax assets:
Provisions 334 (26) - 308
Financial assets at fair value through profit or loss 25 (90) - (65)
Other 3 (2) - 1
362 (118) - 244
Rangatira Group
NOTES TO THE FINANCIAL STATEMENTSCONTINUEDFor the year ended 31 March 2015
NOTE 6 TAX EXPENSE CALCULATED CONTINUED
RAN002_annual_report_v2.indd 33 23/06/15 4:40 PM
34
Rangatira Group
NOTES TO THE FINANCIAL STATEMENTSCONTINUEDFor the year ended 31 March 2015
NOTE 7 TRADE RECEIVABLES Group 2015
$000
Group 2014
$000
Trade receivables (i) 2,746 3,061
Allowance for doubtful debts - -
2,746 3,061
Other receivables 81 16
2,827 3,077
(i) The average credit period on sales of goods is 53 days (2014: 32 days). No interest is charged on the trade receivables or on the outstanding balances. The Group has provided fully for all receivables over 180 days because historical experience is such that receivables that are past due beyond 180 days are generally not recoverable. Trade receivables between 40 days and 180 days are provided for based on estimated irrecoverable amounts from the sale of goods, determined by reference to past default experience.Included in the Group’s trade receivable balance are debtors with a carrying amount of $772,000 (relates to over 40 days) (2014: $632,000) which are past due at the reporting date for which the Group has not provided as there has not been a significant change in credit quality and the Group believes that the amounts are still considered recoverable. The Group does not hold any collateral over these balances. The average age of these receivables is 100 days (2014: 83 days).
Before accepting any new customers, the Group uses an assessment criteria for potential customers’ credit quality and defines
credit limits by customer.
Group 2015
$000
Group 2014
$000
Ageing of past due but not impaired trade receivables
30-60 days 419 287
61-90 days 235 108
91-120 days 107 254
121-150 days 2 25
151-180 days 9 -
Total 772 674
Movement in doubtful debts
Balance at beginning of the year - 41
Amounts written off during the year 4 (41)
Decrease in allowance recognised in profit (4) -
Balance at the end of the year - -
In determining the recoverability of a trade receivable the Group considers any change in the credit quality of the trade receivable
from the date credit was initially granted up to the reporting date. The concentration of credit risk is limited due to the customer
base being large and unrelated. Accordingly, the Directors believe that there is no further credit provision required in excess of the
allowance for doubtful debts.
RAN002_annual_report_v2.indd 34 23/06/15 4:40 PM
35
Group 2015
$000
Group 2014
$000
Merchandise held for resale 432 366
Goods in transit 80 -
Work in progress 71 72
Raw materials 357 385
940 823
Rangatira Group
NOTES TO THE FINANCIAL STATEMENTSCONTINUEDFor the year ended 31 March 2015
NOTE 8 INVENTORIES
Group 2015
$000
Group 2014
$000
Loans and receivables
Current
Interest bearing loans advanced to:
- Associates 18,688 16,445
Non-interest bearing loans advanced to:
- Associates 423 4
Financial assets at fair value through profit or loss:
Current
- Listed shares 2,438 3,861
Available for sale investments:
Non-current
- Listed shares at fair value 40,002 44,739
Cost:
Non-current
Unlisted shares at cost 30,276 25,267
91,827 90,316
Disclosed as:
Current 21,549 20,310
Non-current 70,278 70,006
91,827 90,316
NOTE 9 OTHER FINANCIAL ASSETS
NOTE 10 OTHER CURRENT ASSETS Group 2015
$000
Group 2014
$000
Prepayments 494 346
494 346
RAN002_annual_report_v2.indd 35 23/06/15 4:40 PM
36
Rangatira Group
NOTES TO THE FINANCIAL STATEMENTSCONTINUEDFor the year ended 31 March 2015
NOTE 11 PROPERTY, PLANT AND EQUIPMENT
Gross carrying amount
Buildings at cost
$000
Plant and equipment
at cost $000
Furniture and leasehold
improvements at cost
$000Total $000
2014
Gross value at the beginning of the year 14,497 35,733 7,090 57,320
Additions 20 2,241 3,875 6,136
Disposals - (2,952) (38) (2,990)
Gross value at the end of the year 14,517 35,022 10,927 60,466
2015
Gross value at the beginning of the year 14,517 35,022 10,927 60,466
Additions 85 4,304 486 4,875
Disposals - (1,573) (70) (1,643)
Gross value at the end of the year 14,602 37,753 11,343 63,698
Accumulated depreciation and impairment
Buildings at cost
$000
Plant and equipment
at cost $000
Furniture and leasehold
improvements at cost
$000Total $000
2014
Accumulated depreciation at the beginning of the year 8,140 24,272 3,961 36,373
Depreciation expense 370 1,113 573 2,056
Disposals - (36) (33) (69)
Accumulated depreciation at the end of the year 8,510 25,349 4,501 38,360
2015
Accumulated depreciation at the beginning of the year 8,510 25,349 4,501 38,360
Depreciation expense 358 1,362 627 2,347
Disposals 1 (1,485) (50) (1,534)
Accumulated depreciation at the end of the year 8,869 25,226 5,078 39,173
Net book value
As at 31 March 2014 6,007 9,673 6,426 22,106
As at 31 March 2015 5,733 12,527 6,265 24,525
The Group had no impairment losses for property, plant and equipment.
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37
Rangatira Group
NOTES TO THE FINANCIAL STATEMENTSCONTINUEDFor the year ended 31 March 2015
NOTE 12 INVESTMENTS IN ASSOCIATE COMPANIES Number of shares held
000sPercentage
2015Held
2014Balance
date
Associates
Domett Properties Limited 90 50% 50% 31 March
Hellers Limited 250 50% 50% 31 March
Tuatara Brewing Limited 88 35% 35% 31 March
Domett Properties Limited is a property investment company. Domett Properties Limited was equity accounted from 13 June 2003.
Hellers Limited is a producer of bacon, ham and smallgoods. Hellers Limited was equity accounted from 13 June 2003.
Tuatara Brewing Limited is a brewer of craft beers. Tuatara Brewing Limited was equity accounted from 1 July 2013.
Group 2015
$000
Group 2014
$000
Associates: Continuing operations
Domett Properties Limited - -
Hellers Limited 4,402 5,485
Tuatara Brewing Limited 3,293 3,113
Total investments in associate companies 7,695 8,598
Change in carrying value
Group 2015
$000
Group 2014
$000
Book value at the beginning of the year 8,598 6,556
Investment in Tuatara Brewing Limited - 3,051
Share of profit before tax of associate companies 3,948 3,788
Share of associate companies tax expense (943) (1,207)
Share of profit for the year 3,005 2,581
Dividends received from associate companies (3,397) (3,500)
Share of change in retained earnings of associate companies (392) (919)
Share of associate's foreign currency hedge reserve for the year (511) (90)
Total investments in associate companies 7,695 8,598
RAN002_annual_report_v2.indd 37 23/06/15 4:40 PM
38
Rangatira Group
NOTES TO THE FINANCIAL STATEMENTSCONTINUEDFor the year ended 31 March 2015
NOTE 12 INVESTMENTS IN ASSOCIATE COMPANIES CONTINUED
Summarised financial information of associates
Group 2015
$000
Group 2014
$000
Cash and cash equivalents 38 534 Other current assets 46,595 40,145 Non-current assets 74,825 56,415 Total assets 121,458 97,094
Current financial liabilities - (23,085)Other current liabilities (41,155) (33,877)
Non-current liabilities (51,995) (12,672)Shareholder loans (38,606) (33,381)Total liabilities (131,756) (103,015)Net assets (10,298) (5,921)
Revenue 228,458 186,643
Depreciation 6,485 5,412 Amortisation 115 126 Interest expense 6,788 4,948 Interest income 3 -
Net profit before tax 7,077 8,222
Tax expense 3,651 2,588
Profit after tax 3,426 5,634
Other comprehensive income (1,016) 498
Total comprehensive income for the year after tax 2,410 6,132
Share of associates' profit afer tax 1,629 2,581
Share of associates' net assets (5,321) (3,048)
Dividends received by the Group from associates 3,397 3,500
Contingent liabilities of associates - -
Capital commitments of associates - -
The Group’s share of the capital commitments, other expenditure commitments and contingent liabilities of associates is disclosed in
notes 22, 23 and 24.
Goodwill included in the carrying amount of the Group’s investment in associate companies
Group 2015
$000
Group 2014
$000
On acquisition of associate companies 11,212 9,085 Purchase of Tuatara Brewing Limited - 2,844 Sale of Contract Resources Limited - (717)
11,212 11,212
RAN002_annual_report_v2.indd 38 23/06/15 4:40 PM
39
Rangatira Group
NOTES TO THE FINANCIAL STATEMENTSCONTINUEDFor the year ended 31 March 2015
NOTE 13 GOODWILL Group 2015
$000
Group 2014
$000
Goodwill by subsidiary
Auckland Packaging Company Limited 1,826 1,826
New Zealand Experience Limited 6,721 6,721
Total goodwill 8,547 8,547
Goodwill has been allocated for impairment testing purposes to the cash-generating units of each subsidiary. The recoverable
amount of goodwill is determined from a value in use calculation. The key assumptions applied in the calculation are in respect
of discount rates, growth rates, expected transaction levels and anticipated cost levels. Management estimates discount rates
using pre-tax rates that reflect current market assessments of the time value of money and the risks specific to the assets of the
cash generating unit. The discount rate used is 15% (2014: 15%). The growth rates applied are based on industry growth forecasts.
Changes in anticipated costs are based on past practices and expectations of future market changes. The nominal growth rate used
is 3% consisting of real growth rate of 0% and inflation of 3%. Management prepares 5 year cash flow forecasts based on strategic
plans approved by the Board. Management determines a terminal value for the cash generating unit because the assets are part of a
perpetual business.
The cash generating unit’s value was determined by including the goodwill associated with the acquisition of a subsidiary.
At 31 March 2015, from the tests conducted, there were no indicators of impairment necessitating a writedown of goodwill.
RAN002_annual_report_v2.indd 39 23/06/15 4:40 PM
40
Rangatira Group
NOTES TO THE FINANCIAL STATEMENTSCONTINUEDFor the year ended 31 March 2015
NOTE 14 INTANGIBLES
Group 2014Trademarks
$000Software
$000
Development costs $000
Total $000
Gross carrying amount at the beginning of the year - - 1,000 1,000
Additions - - - -
Disposals - - - -
Gross carrying amount at the end of the year - - 1,000 1,000
Accumulated amortisation at the beginning of the year - - - -
Impairment loss for the year - - 1,000 1,000
Disposals - - - -
Accumulated amortisation at the end of the year - - 1,000 1,000
Net book value at the beginning of the year - - 1,000 1,000
Net book value at the end of the year - - - -
Impairment testing for intangible assets
The Group tests intangible assets annually for impairment, or more frequently if there are indications that intangible assets might be
impaired.
The recoverable amounts of each of the intangible assets are determined on a similar basis as for goodwill. The key assumptions
underlying the value in use calculations are the same as those applied for the impairment testing of goodwill. Development costs,
software and trademarks are amortised on the basis disclosed in accounting policy Note 1 (p).
At 31 March 2014 the development costs were impaired. There are no intangible assets for the Group at 31 March 2015.
RAN002_annual_report_v2.indd 40 23/06/15 4:40 PM
41
Rangatira Group
NOTES TO THE FINANCIAL STATEMENTSCONTINUEDFor the year ended 31 March 2015
NOTE 15 TRADE CREDITORS Group 2015
$000
Group 2014
$000
Trade creditors (1) 2,435 2,172
GST payable 343 290
Other payables 391 657
3,169 3,119
Current portion 3,169 3,119
3,169 3,119
(1) The average credit period on purchases of certain goods is 38 days (2014: 35 days). No interest is charged on the trade payables. The Group has financial risk management policies in place to ensure that all payables are paid within the credit timeframe.
NOTE 16 BORROWINGS Group 2015
$000
Group 2014
$000
Unsecured at amortised cost
Current
Loans from non-controlling interests in subsidiaries 336 346
Non-current
Loans from non-controlling interests in subsidiaries 977 977
Secured at amortised cost
Current
Bank loans (1) 350 -
Non-current
Bank loans (1) 2,000 2,350
3,663 3,673
Disclosed as:
Current portion 686 346
Non-current portion 2,977 3,327
3,663 3,673
(1) The Parent’s bank loan facility requires the security of listed equities with twice the value of the bank loan. This facility is undrawn at March 2015.Polynesian Spa Limited’s bank loans are secured by a first mortgage over the leasehold interest and a general security agreement over all its assets.
RAN002_annual_report_v2.indd 41 23/06/15 4:40 PM
42
Rangatira Group
NOTES TO THE FINANCIAL STATEMENTSCONTINUEDFor the year ended 31 March 2015
NOTE 17 PROVISIONS Group 2015
$000
Group 2014
$000
Employee benefits - current 1,333 1,135
Make good on lease - non-current 286 325
1,619 1,460
Disclosed as:
Current portion 1,333 1,189
Non-current portion 286 271
1,619 1,460
The provision for employee benefits represents the present value of the Directors' best estimate of the future cost of economic
benefits that will be required in the next 12 months for payment of employee entitlements, such as outstanding annual leave, long
service leave and collective agreement payments. This estimate has been made on the basis of future expected wage rates for the
forthcoming 12 month period.
The provision for make good is the Directors’ best estimate of the future cost to make good any damage to the land in removing any
movable fixtures at the expiration of the lease.
RAN002_annual_report_v2.indd 42 23/06/15 4:40 PM
43
Rangatira Group
NOTES TO THE FINANCIAL STATEMENTSCONTINUEDFor the year ended 31 March 2015
NOTE 18 SHARE CAPITAL Group 2015
$000
Group 2014
$000
Ordinary "A" shares (6,165,000 shares) 6,165 6,165
Ordinary "B" shares (11,547,000 shares) 11,547 11,547
17,712 17,712
“A” and “B” shares rank equally, except that “B” shares carry restricted voting rights. These are limited to voting on proposals to:
(i) sell the whole of Rangatira Limited’s undertaking, or
(ii) alter its constitution.
The “B” shareholders are not entitled to participate in future cash issues unless the “A” shareholders agree. These matters are set out
in full in Clause 3 of Rangatira Limited’s constitution.
All “A” and “B”shares are fully paid and there are no partly paid shares.
NOTE 19 RETAINED EARNINGS
Note
Group 2015
$000
Group 2014
$000
Balance at beginning of year 117,405 85,769
Profit attributable to equity holders of the Parent 13,744 39,429
Dividends 21 (8,148) (7,793)
Balance at end of year 123,001 117,405
RAN002_annual_report_v2.indd 43 23/06/15 4:40 PM
44
Rangatira Group
NOTES TO THE FINANCIAL STATEMENTSCONTINUEDFor the year ended 31 March 2015
NOTE 20 EARNINGS PER SHARE Group 2015
Group 2014
Profit attributable to equity holders of the Parent ($000's) 13,744 39,429
Number of shares (000's) 17,712 17,712
Earnings per share (cents) 77.6 222.6
There has been no change in the number of shares on issue during the period.
Diluted earnings per share are the same as basic earnings per share because there are no dilutive equity instruments in the Group.
NOTE 21 DIVIDENDSGroup
2015Group
2014
Amount paid (cents per share) 46.0 44.0
Amount paid ($000's) 8,148 7,793
NOTE 22 CAPITAL COMMITMENTSGroup
2015 $000
Group 2014
$000
Plant and equipment 113 -
Other (1) 2,945 6,775
3,058 6,775
(1) Capital commitments are for investment funds which are under contract but not invested at balance date.
NOTE 23 LEASESGroup
2015 $000
Group 2014
$000
Non-cancellable operating leases payments
Within 1 year 1,912 1,904
Greater than 1 year, but less than 5 years 4,747 5,770
Greater than 5 years 13,529 14,431
20,188 22,105
The Group has entered into a number of operating leases for land and premises for the Group companies. The lease terms vary and
there are options to renew. The Group also has operating leases for cars and computer equipment.
RAN002_annual_report_v2.indd 44 23/06/15 4:40 PM
45
Rangatira Group
NOTES TO THE FINANCIAL STATEMENTSCONTINUEDFor the year ended 31 March 2015
NOTE 24 CONTINGENT LIABILITIESThere are no significant contingent liabilities (2014: nil).
NOTE 25 SUBSIDIARY COMPANIES
Principal activities 2015 2014
Auckland Packaging Company Limited Packaging 100% 100%
DLL Investments Limited (iv) Special purpose investment 70% 70%
NZ Experience Limited Special purpose investment 100% 100%
Peach Products Limited (i) Special purpose investment 50% 50%
Polynesian Spa Limited Tourism 51% 51%
Precision Dispensing Systems Limited (ii) Pump developer and manufacturer 85% 85%
Rainbow's End Theme Park Limited Theme park operator 100% 100%
Rangatira Ventures Limited (iii) Special purpose investment 100% 100%
Tongariro Invt Limited Special purpose investment 100% 100%
Watt Land Company Limited Trading investment 100% 100%
(i) Non trading subsidiaries.(ii) Fully diluted shareholding.(iii) Incorporated in March 2014.(iv) Previously called Vita New Zealand Limited and Dunlop Living Limited.
NOTE 26 RELATED PARTY TRANSACTIONS
All subsidiary companies have balance dates of 31 March and are incorporated in New Zealand
TRANSACTIONS AND BALANCES WITH ASSOCIATES
The transactions and balances below are those between the Parent and its associates.Group
2015 $000
Group 2014
$000
Revenue
Interest received from associates 1,902 1,719
Directors' fees received from associates 22 16
Expenses
Key management personnel expenses - short term 1,013 1,160
Loans
Loans to associates (i) 19,111 16,449
(i) Loans to associates are a mixture of fixed term and on call and at market interest rates or interest free. Refer note 9. No debts to associates, key management personnel or other related parties were written off or forgiven during the year (2014: nil).
RAN002_annual_report_v2.indd 45 23/06/15 4:40 PM
46
Rangatira Group
NOTES TO THE FINANCIAL STATEMENTSCONTINUEDFor the year ended 31 March 2015
NOTE 27 FINANCIAL INSTRUMENTS
(A) CAPITAL RISK MANAGEMENT
The Group manages its capital to ensure that entities in the Group will be able to continue as a going concern while maximising the
return to stakeholders through the optimisation of the debt and equity balance.
Financial and capital management involves ensuring that the Group income, expenses and balance sheet are managed in such a way as
to maximise returns to investors. This includes:
• Ensuring that cash flows from dividends and other income are utilised as they come available. This may be by way of capital
expenditure for expansion of the business, or simply by debt repayments or by ensuring that cash balances are earning competitive
interest rates.
• Ensuring that borrowings are used prudently, minimising interest costs, while at the same time making appropriate decisions about
the trade-off between the cost of borrowing and the potential return from investment opportunities.
The capital structure of the Group consists of debt, which includes the borrowings disclosed in note 16, cash and cash equivalents and
equity attributable to equity holders of the Parent, comprising issued capital, retained earnings and reserves.
Some of the Group’s subsidiaries are subject to externally imposed bank covenants as part of their secured bank loan facilities as
disclosed in note 16. There have been no breaches of the bank covenants during the year.
(B) SIGNIFICANT ACCOUNTING POLICIES
Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of measurement
and the basis on which income and expenses are recognised, in respect of each class of financial asset, financial liability and equity
instrument are disclosed in Note 1 Significant Accounting Policies.
RAN002_annual_report_v2.indd 46 23/06/15 4:40 PM
47
Rangatira Group
NOTES TO THE FINANCIAL STATEMENTSCONTINUEDFor the year ended 31 March 2015
NOTE 27 FINANCIAL INSTRUMENTS CONTINUED
(C) FOREIGN CURRENCY RISK MANAGEMENT
The Group’s risk mangement practices remain consistent with the prior year. The Group undertakes certain transactions denominated
in foreign currencies, hence exposures to exchange rate fluctuations arise. Exchange rate exposures are managed within approved
policy parameters utilising forward foreign exchange contracts.
The carrying amount of the Group’s foreign currency denominated monetary assets and monetary liabilities at the reporting date is as
follows:Group
2015 $000
Group 2014
$000
Assets
AUD 14,715 21,246
GBP 9,415 9,133
HKD 2,046 2,776
USD 2,776 2,372
Liabilities
USD 2 2
(D) FORWARD FOREIGN EXCHANGE CONTRACTS
It is the policy of the Group to enter into forward foreign exchange contracts to cover specific foreign currency payments and receipts
within 50% to 100% of the exposure generated. The Group also enters into forward foreign exchange contracts to manage the risk
associated with anticipated sales and purchase transactions out to 6 months within 40% to 50% of the exposure generated.
The Group has no forward foreign exchange contracts.
RAN002_annual_report_v2.indd 47 23/06/15 4:40 PM
48
(E) CATEGORIES OF FINANCIAL INSTRUMENTS
2014
Loans and receivables
$000
Available for sale assets
$000
Designated at fair value
$000
Financial assets and
liabilities at amortised cost
$000
Investments at cost
$000
Investments accounted
for using the equity method
$000Total $000
Assets
Cash and cash equivalents 29,542 - - - - - 29,542
Trade and other receivables 3,076 - - - - - 3,076
Other financial assets 16,449 44,739 3,861 - 25,267 8,598 98,914
Total financial assets 49,067 44,739 3,861 - 25,267 8,598 131,532
Non-financial assets 32,641
Total assets 49,067 44,739 3,861 - 25,267 8,598 164,173
Liabilities
Trade and other payables - - - 3,483 - - 3,483
Borrowings and other financial liabilities
- - - 3,673 - - 3,673
Total financial liabilities - - - 7,156 - - 7,156
Total non-financial liabilities 3,211
Total liabilities - - - 7,156 - - 10,367
2015
Loans and receivables
$000
Available for sale assets
$000
Designated at fair value
$000
Financial assets and
liabilities at amortised cost
$000
Investments at cost
$000
Investments accounted
for using the equity method
$000Total $000
Assets
Cash and cash equivalents 29,428 - - - - - 29,428
Trade and other receivables 2,827 - - - - - 2,827
Other financial assets 19,110 40,002 2,438 - 30,276 7,695 99,521
Total financial assets 51,366 40,002 2,438 - 30,276 7,695 131,777
Non-financial assets 35,091
Total assets 51,366 40,002 2,438 - 30,276 7,695 166,868
Liabilities
Trade and other payables - - - 3,845 - - 3,845
Borrowings and other financial liabilities
- - - 3,663 - - 3,663
Total financial liabilities - - - 7,508 - - 7,508
Total non-financial liabilities 3,585
Total liabilities - - - 7,508 - - 11,093
Rangatira Group
NOTES TO THE FINANCIAL STATEMENTSCONTINUEDFor the year ended 31 March 2015
NOTE 27 FINANCIAL INSTRUMENTS CONTINUED
RAN002_annual_report_v2.indd 48 23/06/15 4:40 PM
49
Rangatira Group
NOTES TO THE FINANCIAL STATEMENTSCONTINUEDFor the year ended 31 March 2015
NOTE 27 FINANCIAL INSTRUMENTS CONTINUED
(F) INTEREST RATE RISK
The Group has long term variable rate borrowings, which are used to fund ongoing activities. Management monitors the level of
interest rates on an ongoing basis, and from time to time, will lock in fixed rates. The notional principal or contract amounts of the
Group’s long term variable rate borrowings at balance date were $2,350,000 (2014: $2,350,000).
(G) CREDIT RISK AND CONCENTRATIONS OF CREDIT RISK
The Group incurs credit risk from trade debtors and transactions with financial institutions. The risk associated with trade debtors is
managed with a credit policy which includes performing credit evaluations on customers. The risk associated with financial institutions
is managed by placing cash and short-term investments with registered New Zealand banks. The Group is not exposed to any other
concentrations of credit risk other than loans to associates disclosed in note 9 and to trade receivables as disclosed in note 7.
(H) LISTED EQUITY PRICE RISK AND OTHER PRICE RISK SENSITIVITY ANALYSIS
The Group is exposed to listed equity price risks arising from listed equity investments. The available for sale listed equity investments
are held for strategic rather than trading purposes. The Group does not actively trade these investments.
The sensitivity analysis has been determined based on the exposure to listed equity price risks at the reporting date. At reporting date,
if the market price of equity investments had been 1% higher/lower at balance date while all other variables were held constant, the
available for sale investments’ reserve would have increased/decreased by $393,000 (2014: $447,000) for the Group.
RAN002_annual_report_v2.indd 49 23/06/15 4:40 PM
50
Rangatira Group
NOTES TO THE FINANCIAL STATEMENTSCONTINUEDFor the year ended 31 March 2015
NOTE 27 FINANCIAL INSTRUMENTS CONTINUED
(I) FAIR VALUE OF FINANCIAL INSTRUMENTS
The following table provides an analysis of financial instruments that are measured subsequent to initial recognition at fair value,
grouped into Levels 1 to 3 based on the degree to which the fair value is observable.
Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or
liabilies.
Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for
the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
Level 3 fair value measurements are those derived from valuation techniques that includes inputs for the asset or liability that are not
based on observable market data (unobservable inputs).
There were no transfers between Levels 1, 2 and 3 of the fair value hierarchy during the year ended 31 March 2015 (2014: None).
2014Level 1
$000Level 2
$000Level 3
$000Total $000
Financial assets at fair value through profit and loss
Shares 3,861 - - 3,861
Available for sale financial assets
Shares 41,627 3,112 - 44,739
Total financial assets 45,488 3,112 - 48,600
2014Level 1
$000Level 2
$000Level 3
$000Total $000
Financial assets at fair value through profit and loss
Shares 2,438 - - 2,438
Available for sale financial assets
Shares 36,021 3,981 - 40,002
Total financial assets 38,459 3,981 - 42,440
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51
(J) LIQUIDITY RISK MANAGEMENT
The following tables detail the Group’s expected maturity for its non-derivative financial assets and liabilities. The tables below have
been drawn up based on the undiscounted contractual maturities of the financial assets and liabilities including interest that will be
earned or paid on those assets and liabilities except where the Group anticipates that the cash flow will occur in a different period. .
Group financial liabilities
Weighted average
effective interest
rate %
Less than 1 month
$0001-3 months
$000
3 months to 1 year $000
1-5 years $000
5+ years $000
Total $000
2014
Non-interest bearing 0.00% 1,815 2,173 - 977 - 4,965
Variable interest rate instruments 5.59% 33 66 98 2,613 - 2,810
Fixed interest rate instruments 5.49% - 12 - - - 12
Total financial liabilities 1,848 2,251 98 3,590 - 7,787
2015
Non-interest bearing 0.00% 4,029 152 - 977 - 5,158
Variable interest rate instruments 6.15% - - - 2,639 - 2,639
Total financial liabilities 4,029 152 - 3,616 - 7,797
Group financial assets
Weighted average
effective interest
rate %
Less than 1 month
$0001-3 months
$000
3 months to 1 year $000
1-5 years $000
5+ years $000
Total $000
2014
Non-interest bearing 0.00% 3,971 850 - - - 4,821
Share investments 0.00% 5,574 - - - 76,891 82,465
Variable interest rate instruments 7.86% 43,981 - - - - 43,981
Fixed interest rate instruments 2.75% 552 - - - - 552
Total financial assets 54,078 850 - - 76,891 131,819
2015
Non-interest bearing 0.00% 12,898 622 - - - 13,520
Share investments 0.00% 4,745 - - - 67,037 71,782
Variable interest rate instruments 6.87% 46,034 - - - - 46,034
Fixed interest rate instruments 0.00% 703 - - - - 703
Total financial assets 64,380 622 - - 67,037 132,039
Rangatira Group
NOTES TO THE FINANCIAL STATEMENTSCONTINUEDFor the year ended 31 March 2015
NOTE 27 FINANCIAL INSTRUMENTS CONTINUED
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52
Rangatira Group
NOTES TO THE FINANCIAL STATEMENTSCONTINUEDFor the year ended 31 March 2015
NOTE 28 CASHFLOW RECONCILIATION Group 2015
$000
Group 2014
$000
Profit after tax 14,724 40,171
Add/(less) non-cash items:
Share of retained profit for the year
from associate companies 392 919
Impairment of intangible assets - 1,000
Depreciation 2,347 2,056
Increase/(decrease) in deferred tax 62 (117)
Gain on revaluation of financial assets at fair value through profit or loss
(322) (64)
2,479 3,794
Add/(Less) Movements in other working capital items:
Change in trade receivables 250 (72)
Change in inventories (117) 113
Change in tax receivable 116 144
Change in other current assets (148) (88)
Change in trade payables 50 (782)
Change in current tax payable 312 (32)
Change in provisions 159 206
622 (511)
Less items classified as investing activities:
Net (gain) on sale of investments (4,965) (33,165)
Net loss on sale of fixed assets 88 -
(4,877) (33,165)
Net cash inflows from operating activities 12,948 10,289
NOTE 29 SUBSEQUENT EVENTS
Rangatira Limited has agreed to pay a dividend of 27 cps on 29 June 2015.
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53
INDEPENDENT AUDITOR’S REPORT TO THE SHAREHOLDERS OF RANGATIRA LIMITED GROUP
Report on the Consolidated Financial StatementsWe have audited the accompanying consolidated financial
statements of the Rangatira Limited Group (‘the Group’) on
pages 14 to 52, which comprise the consolidated statement
of financial position as at 31 March 2015, and the consolidated
income statement, consolidated statement of comprehensive
income, consolidated statement of changes in equity and
consolidated statement of cash flows for the year then ended,
and a summary of significant accounting policies and other
explanatory information.
This report is made solely to the company’s shareholders, as a
body. Our audit has been undertaken so that we might state to
the company’s shareholders those matters we are required to
state to them in an auditor’s report and for no other purpose.
To the fullest extent permitted by law, we do not accept or
assume responsibility to anyone other than the company’s
shareholders as a body, for our audit work, for this report, or for
the opinions we have formed.
Board of Directors’ Responsibility for the Consolidated Financial StatementsThe Board of Directors are responsible for the preparation and
fair presentation of these consolidated financial statements,
in accordance with New Zealand Equivalents to International
Financial Reporting Standards, International Financial
Reporting Standards and generally accepted accounting
practice in New Zealand, and for such internal control as the
Board of Directors determine is necessary to enable the
preparation of consolidated financial statements that are free
from material misstatement, whether due to fraud or error.
Auditor’s ResponsibilitiesOur responsibility is to express an opinion on these
consolidated financial statements based on our audit.
We conducted our audit in accordance with International
Standards on Auditing and International Standards on Auditing
(New Zealand). Those standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the consolidated financial
statements are free from material misstatement.
An audit involves performing procedures to obtain audit
evidence about the amounts and disclosures in the
consolidated financial statements. The procedures selected
depend on the auditor’s judgement, including the assessment
of the risks of material misstatement of the consolidated
financial statements, whether due to fraud or error. In making
those risk assessments, the auditor considers internal control
relevant to the entity’s preparation and fair presentation of
the consolidated financial statements in order to design audit
procedures that are appropriate in the circumstances, but not
for the purpose of expressing an opinion on the effectiveness
of the entity’s internal control. An audit also includes evaluating
the appropriateness of the accounting policies used and the
reasonableness of accounting estimates, as well as the overall
presentation of the consolidated financial statements.
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This audit report relates to the consolidated fi nancial statements of Rangatira Limited Group for the year ended 31 March 2015 included on Rangatira
Limited’s website. The Board is responsible for the maintenance and integrity of Rangatira Limited’s website. We have not been engaged to report
on the integrity of the Rangatira Limited’s website. We accept no responsibility for any changes that may have occurred to the consolidated fi nancial
statements since they were initially presented on the website. The audit report refers only to the consolidated fi nancial statements named above. It
does not provide an opinion on any other information which may have been hyperlinked to/from these consolidated fi nancial statements. If readers
of this report are concerned with the inherent risks arising from electronic data communication they should refer to the published hard copy of the
audited consolidated fi nancial statements and related audit report dated 31 March 2015 to confi rm the information included in the audited consolidated
fi nancial statements presented on this website. Legislation in New Zealand governing the preparation and dissemination of fi nancial statements may
diff er from legislation in other jurisdictions.
54
We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our audit
opinion.
Other than in our capacity as auditor and the provision of
taxation advice, we have no relationship with or interests in the
Group. These services have not impaired our independence as
auditor of the Group.
OpinionIn our opinion, the consolidated financial statements on pages
14 to 52 present fairly, in all material respects, the financial
position of the Rangatira Limited Group and its subsidiaries
as at 31 March 2015, and their financial performance and cash
flows for the year then ended in accordance with New Zealand
Equivalents to International Financial Reporting Standards,
International Financial Reporting Standards and generally
accepted accounting practice in New Zealand.
Chartered Accountants
8 June 2015
Wellington
New Zealand
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55
DIVIDENDSThe Directors have declared a fully imputed final dividend of 27
cents per share to be paid on 29 June 2015. An interim dividend
of 20 cents per share was paid in December 2014. This makes a
total of 47 cents per share for the year, fully imputed.
CONSOLIDATIONThe results incorporate all trading subsidiaries and associates.
DIRECTORSIn accordance with the provisions of the Company’s
constitution Messrs Calavrias and Gillanders retire by rotation
and being eligible offer themselves for re-election.
REMUNERATION OF DIRECTORSRangatira Directors
Directors of Rangatira Limited were paid fees as Directors of
Rangatira Limited and subsidiaries during the year as follows:
N Calavrias $61,124
D K Gibson $74,524
W L Gillanders $74,350
S Haslem $68,374
I S Knowles $49,624
D A Pilkington $84,624
R A Wilks $74,624
REMUNERATION OF EMPLOYEESThe number of employees of Rangatira and its subsidiaries,
including executive directors of subsidiaries, whose income
during the year was in the specified bands, are as follows:
$100,000 - $110,000 1
$110,001 - $120,000 2
$120,001 - $130,000 2
$140,001 - $150,000 1
$150,001 - $160,000 1
$160,001 - $170,000 2
$180,001 - $190,000 1
$220,001 - $230,000 1
$250,001 - $260,000 1
$290,001 - $300,000 2
$310,001 - $320,000 1
$390,000 - $400,000 1
TRANSACTIONS WITH THE COMPANYNo Director has entered into any transaction with the Company
other than in the normal course of business.
USE OF COMPANY INFORMATIONDuring the year, the Board received no notices from Directors
of the Company requesting to use Company information
received in their capacity as directors that would not otherwise
have been available to them.
AUDITORThe Company’s Auditor through the year was Deloitte.
On behalf of the Board;
D A Pilkington
Chair
Wellington
18 June 2015
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56
RANGATIRA LIMITED (RANGATIRA) ANNUAL REPORT DISCLOSURES UNDER THE TAKEOVERS CODE (RANGATIRA LIMITED) EXEMPTION NOTICE (NO 2) 2014
BACKGROUNDAt the annual general meeting of Rangatira held on 4 August 2014, the shareholders of Rangatira approved the acquisition by Rangatira
of up to an aggregate of 600,000 A shares and 600,000 B shares from shareholders during the period from 4 August 2014 to 4 August
2017 (Buyback), on the terms and conditions more fully explained in the explanatory notes accompanying the notice of that meeting.
The Takeovers Panel granted to Rangatira an exemption from the Takeovers Code so that the Code Shareholders (listed in the
Appendix) are exempted from rule 6(1) of the Takeovers Code in respect of any increased percentage of voting rights held or controlled
by any of them as a result of the Buyback. The disclosures below are required by the Takeovers Code (Rangatira Limited) Exemption
Notice (No 2) 2014 (Exemption Notice).
A summary of the terms of the Buyback, as approved at
the AGM on 4 August 2014
Disclosure requirements Disclosure
Rangatira intends to make one or more offers (Offer) to
shareholders of Rangatira to acquire up to an aggregate
of:
• 600,000 A shares in Rangatira; and
• 600,000 B shares in Rangatira,
on the following terms:
• the consideration for each Share will be determined by
the board from time to time, however will not exceed
80% of the assessed asset backing value of each Share
as set out in the last public statement of that assessed
asset backing value made by Rangatira prior to the
Offer; and
• the Offer(s) will be made between 4 August 2014 and 4
August 2017, however Rangatira will not be obliged to
make Offers and may cease doing so at any time.
Rangatira will pay the price for each share acquired under
the Buyback within five business days after the date of
each acquisition.
The Shares acquired by Rangatira will be held as treasury
shares until the Shares acquired equal 5% of the number
of shares of the same class previously in issue.
a
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57
A statement, as at the end of the financial year to which
the report relates, of:
i the number of voting securities on issue acquired
under the Buyback;
ii the number of voting securities on issue that are
held or controlled by the Code Shareholders, and the
percentage of all voting securities on issue that that
number represents;
iii the percentage of all voting securities on issue that
are held or controlled, in aggregate, by the Code
Shareholders and the Code Shareholders’ associates;
iv the maximum percentage of all voting securities on
issue that could be held or controlled by the Code
Shareholders if Rangatira acquires the approved
maximum number of voting securities;
v the maximum percentage of all voting securities on
issue that would be held or controlled, in aggregate,
by the Code Shareholders and the Code Shareholders’
associates if Rangatira acquires the approved
maximum number of voting securities;
vi in relation to each of the matters referred to in
paragraphs (i) to (v), any change, since the notice of
meeting containing the resolution to approve the
Buyback or the last annual report, as the case may be,
to:
(A) the Code Shareholder under clauses 6 to 8 of the
Exemption Notice; and
(B) the number, percentage, or maximum percentage,
as the case may be, of voting securities held or
controlled as a result of that change of the Code
Shareholder.
Disclosure requirements Disclosure
No securities were acquired in the year ending 31 March
2015.
2,338,617 A Shares being 37.93% of the total A Shares on
issue.
37.93% of the total A shares on issue.
42.02%, as further detailed in the Appendix.
42.02%
There have been no relevant changes since the date of the
resolution approving the Buyback
b
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58
The assumptions on which the particulars referred to in paragraph (b) are based.
Disclosure requirements Disclosure
The information in this table assumes that:
• the number of voting securities in Rangatira is the
number of voting securities on issue at the end of
Rangatira’s 31 March 2015 financial year (calculation
date);
• there is no change in the total number of voting
securities on issue between the calculation date and the
end of the Buyback period, other than as a result of the
Buyback;
• the Code Shareholders do not participate in the
Buyback; and
• Rangatira acquires the approved maximum number of
its own voting securities.
c
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5959
APPENDIXCODE SHAREHOLDERSShareholder The maximum percentage of all voting securities on
issue that could be held or controlled by the Code Shareholder if Rangatira acquires the approved
maximum number of voting securities
Gibson Family
Anna Elizabeth Gibson 0.99%
Douglas Keith Gibson 1.14%
Douglas Keith Gibson, Robyn May Gibson and William Duncan Macdonald (as trustees of a family trust)
0.48%
Nicola Kate Gibson 0.99%
Robyn May Gibson 7.06%
Robyn May Gibson, Douglas Keith Gibson and Ian Gary MacKegg (as trustees of a family trust)
1.80%
Sarah Louise McLennan 0.99%
McKenzie family
Ruth Anne McKenzie 6.37%
Christopher McKenzie 1.86%
David McKenzie 1.84%
John Allan McKenzie and Jennifer Mary McKenzie (as trustees of a family trust)
1.03%
John Allan McKenzie, Jennifer Mary McKenzie and Alberta Louise Helen McKenzie
1.03%
Aubrey Meredith Bloomfield 1.03%
Sibyl Ella May Bloomfield 1.03%
Others
Christopher McKenzie and Sarah Louise McLennan (as trustees of the JR McKenzie Trust)
7.23%
Christopher McKenzie and Sarah Louise McLennan (as trustees of the JR McKenzie Trust)
1.80%
Nga Manu Trust (a charitable trust registered under the Charitable Trusts Act 1957)
5.35%
Total 42.02%
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DIRECTORY
BOARDD A Pilkington Chair
D K Gibson Deputy Chair
N Calavrias ONZM
W L Gillanders
S Haslem
I S Knowles
R A Wilks
EXECUTIVEP J Veal Chief Executive
C J Bradshaw Chief Financial Officer
COMPANYLevel 10, Solnet House
70 The Terrace
Wellington
New Zealand
PO Box 804
p: +64 4 472 0251
f: +64 4 473 2685
www.rangatira.co.nz
REGISTRARCOMPUTER INVESTOR SERVICES LIMITED
Private Bag 92119
Victoria Street West
Auckland 1142
p: +64 9 488 8777
www.computershare.co.nz
AUDITORDELOITTE
Levels 11, 10 Brandon Street
PO Box 1990
Wellington 6140
New Zealand
p: +64 4 470 3500
www.deloitte.co.nz
SHARE TRADING AND PRICE INFORMATIONEFFICIENT MARKET SERVICES LIMITED
PO Box 3156,
Wellington 6140,
New Zealand
p: 0508 865 478
www.unlisted.co.nz
60
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6161
In 2014 the Trust’s support for Māori development over
recent years was recognised when it became the first New
Zealand recipient of the prestigious International Funders
for indigenous Peoples Award. Deputy Chair Manaia King was
presented with the award at the IFIP conference in New York.
This year the Trust was in funding relationships with over 50
organisations, involving grants totalling over $6 million. This
included 23 new grants, totalling approximately $3 million,
committed during the year. Many of these extend over several
years.
This was all in support of supporting our vision of a socially
just and inclusive Aotearoa New Zealand. The Trust wants
to contribute to longer term change – this means building a
society where fewer people are in dire straits, and where there
is less need for health and social services over time.
The Board has committed to two principal areas of focus:
Disadvantaged children and their familiesChildren are disproportionately affected by poverty and
disadvantage. Acting early with children who have a high chance
of not doing well, and their caregivers, is more effective than
leaving things to later.
As we know, education can help families achieve a better
life. The Trust’s Connecting Education and Communities
programme seeks to make a contribution to this by increasing
the engagement of parents and families in their children’s
formal and informal learning, and building effective teamwork
between parents and teachers.
The Trust is also a proud partner alongside the Office of the
Children’s Commissioner and Otago University in producing
Child Poverty Monitor, an annual snapshot of how we are doing
as a country in giving our children the best start in life:
www.childpoverty.co.nz
Māori DevelopmentMāori are the first people of our nation, and an increasing
proportion of the population. Many health and social indicators
show that Māori trail non-Māori. While the disparities have
closed in some areas, there is still much to do. Successful Māori
development is a gain for all New Zealanders.
The Trust’s Te Kāwai Toro Committee leads the Trust’s work in
this area, and seeks opportunities to contribute proactively to
Māori development.
Each year we also make a grant to the J R McKenzie Youth
Education Fund, which makes small grants to families in
adverse situations for children’s education-related costs. The
Fund, which holds its own Rangatira shares as well, is entirely
operated by Rotary volunteers.
The Deaf Development Fund makes grants and scholarships in
support of the deaf community. In the year to March 2014 the
Fund committee made 33 grants and scholarships supporting
the Deaf community, and also allocated 9 further awards from
the Penny Went family NZSL Fund, to a total value in excess of
$92,000.
The Trust is also a partner in the Working Together More
Fund. This is a collaboration of six funding organisations; as
its name suggests, it makes grants to groups of community
organisations, to help them explore and create ways of working
together better – for example sharing facilities, aligning client
management systems, even merging.
The Trust has recently become the first New Zealand
philanthropic organisation to become accredited as a Living
Wage employer. We see this as another strategy to improve the
life chances of low income families.
We very much appreciate the diligence and wisdom of
Rangatira Ltd’s directors and staff, and their contribution to
sustaining the McKenzie legacy of generosity. We are also
grateful for the active support of the Rotary movement, whose
members assist with publicising the Trust and assessing grant
applications; and the thousands of people in our community
who strive to make life better for New Zealanders facing
hardship, adversity and social exclusion.
JR MCKENZIE TRUSTESTABLISHED IN 1940
RAN002_annual_report_v2.indd 61 23/06/15 4:40 PM
62
The Trust celebrates its 75th anniversary in 2015. The language
we use today is different from that of our founder, and our
processes have evolved; yet we are dealing with issues in some
ways quite similar to those faced by the less well-off and less
fortunate in our society in the 1940s. It is often argued that
social issues today are more complex. Certainly society is more
diverse, but the core challenges of fostering a caring, inclusive
society, and ensuring all people are able to access a fair share
of resources to flourish, still confront us today. We salute the
generosity and vision of Sir John McKenzie, his son Sir Roy, and
the wider McKenzie family.
J R MCKENZIE TRUSTEES ARE:Patrick Cummings – Chair
Lyn Holmes
Eric Keys
Manaia King
Paula King
Christopher McKenzie
Charisma Rangipuna
Joan Smith
Liz Tanielu
David Vance
Puawai Wereta
Charles Wilson
Jonathan Usher
For more information about the J R McKenzie Trust and the
groups it supports, visit the Trust’s website:
www.jrmckenzie.org.nz
or contact:
Iain Hines or Alison Glen
PO Box 10 006
Wellington 6143
p: (04) 472 8876
“ITI NOA ANA, HE PITO MATA- WITH CARE, A SMALL KUMARA WILL PRODUCE A HARVEST.”
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65
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66
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