Gisborne Holdings will pay $1.9 million to GDC

A $1.9 million distribution for the 2018 financial year to Gisborne District Council will be paid by Gisborne Holdings Ltd in May, the council’s finance and audit committee was told.

Presenting the company’s six monthly report to December 2018, chairman Rob Telfer said the 2019 distribution would be calculated in accordance with the distribution at the end of the 2019 financial year. The minimum amount to be paid was $1.8 million.

The operating profit for the six months was $1.1 million, marginally behind the plan of $1.2 million and behind last year of $1.4 million.

The bank debt equity moved from 9.9 percent in June, 2018 to 14.7 percent in December, 2018. This remained under the 20 percent cap in the statement of intent.

Mr Telfer said these variances were not unexpected due to seasonal factors such as the timing of stock sales and forestry harvesting.

Tauwhareparae Farms Ltd was experiencing a very solid start to the year on the pastoral side of the business with the region enjoying good weather.

“Sheep and beef prices remain strong and we anticipate a strong result for the remainder of the financial year.”

The harvesting of a very low returning forestry block also contributed to the variances. The terrain and size of the block made it very uneconomical.

“A full assessment of all replanting options is crucial to ensure we optimise land use and returns for the future,” Mr Telfer said.

Roading costs remained a concern. “This accentuates the need to develop our own quarry as cartage of metal is one of the largest costs. The development of Wairangi Road is essential to this and the extraction of future trees from Tauwhareparae Farms Ltd.”

Investment in farm maintenance and improvements continued with a focus on fencing and staff accommodation.

Gross profit is up on the previous year across all the commercial divisions.

“We are in a strong position financially and see our largest strength as having the buy-in of all divisions and staff.

“I would like to take this opportunity to thank all our staff in all divisions for their effort and contribution to the success of the company. We are only as good as the people around us,” he said.

The property portfolio increased with land purchases in Banks Street and Childers Road (the former St Mary’s school site.)

The first two stages of the holiday park development project had been completed and planning was progressing for the next stage.

“We expect the trends seen in the first half of the year to continue,” he said.

“Forestry will be a key area of focus, there is much happening in this space and we need to ensure we capitalise on all opportunities available.

A $1.9 million distribution for the 2018 financial year to Gisborne District Council will be paid by Gisborne Holdings Ltd in May, the council’s finance and audit committee was told.

Presenting the company’s six monthly report to December 2018, chairman Rob Telfer said the 2019 distribution would be calculated in accordance with the distribution at the end of the 2019 financial year. The minimum amount to be paid was $1.8 million.

The operating profit for the six months was $1.1 million, marginally behind the plan of $1.2 million and behind last year of $1.4 million.

The bank debt equity moved from 9.9 percent in June, 2018 to 14.7 percent in December, 2018. This remained under the 20 percent cap in the statement of intent.

Mr Telfer said these variances were not unexpected due to seasonal factors such as the timing of stock sales and forestry harvesting.

Tauwhareparae Farms Ltd was experiencing a very solid start to the year on the pastoral side of the business with the region enjoying good weather.

“Sheep and beef prices remain strong and we anticipate a strong result for the remainder of the financial year.”

The harvesting of a very low returning forestry block also contributed to the variances. The terrain and size of the block made it very uneconomical.

“A full assessment of all replanting options is crucial to ensure we optimise land use and returns for the future,” Mr Telfer said.

Roading costs remained a concern. “This accentuates the need to develop our own quarry as cartage of metal is one of the largest costs. The development of Wairangi Road is essential to this and the extraction of future trees from Tauwhareparae Farms Ltd.”

Investment in farm maintenance and improvements continued with a focus on fencing and staff accommodation.

Gross profit is up on the previous year across all the commercial divisions.

“We are in a strong position financially and see our largest strength as having the buy-in of all divisions and staff.

“I would like to take this opportunity to thank all our staff in all divisions for their effort and contribution to the success of the company. We are only as good as the people around us,” he said.

The property portfolio increased with land purchases in Banks Street and Childers Road (the former St Mary’s school site.)

The first two stages of the holiday park development project had been completed and planning was progressing for the next stage.

“We expect the trends seen in the first half of the year to continue,” he said.

“Forestry will be a key area of focus, there is much happening in this space and we need to ensure we capitalise on all opportunities available.

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