CHIEF EXECUTIVE'S REPORT
“Planning For The Future” is the theme of this year’s TRONPnui annual report. This aligns very well with our company statements, beliefs, and strategic direction. It is my pleasure to report to you the past 12 months’ results and our game plan for the future.
Matakitaki mai: Watch Ngati Porou Seafoods Group CEO, Mark Ngata report on Ngati Porou Seafoods 2016/2017 activities. To listen to the Radio Interview and to download the full TRONPnui Annual Report scroll down to the end of this article.
2017 year in review
We continue to be dedicated to providing a dividend for our shareholders and I am happy to report that for the 12 months ended 30th June 2017, we recorded a $1 million surplus, before interest/tax. This is a similar position to the previous year’s result.
This has been achieved in a very challenging environment as our operating activities and indeed those of our partners come under increasing scrutiny to be run in a sustainable manner. This is placing tremendous pressure on harvesting and processing, in particular, which we are trying to address.
Despite this I am proud to report that we are an active participant on your behalf within all fisheries forums and we are compliant in all aspects of our regulatory obligations. Enhancing our social licence is one area that requires more attention and I believe will create added value for the business into the future.
OTHER AREAS CONTRIBUTING TO RESULT
There were a number of areas that contributed to our result that merit further comment. Our strategic partnerships and investments have worked well for us and I believe will continue to do so. Koura revenue suffered a 4th quarter negative market adjustment that was unforeseen and harvesting challenges within the Inshore finfish area also negatively impacted revenues.
Compliance issues within AHIA, our smoked fish channel, also took longer than anticipated to address which cost more than planned to rectify before being able to move forward with confidence. These issues negatively impacted our EBIT performance against plan, however, I believe we have emerged better off for the experience, knowledge acquired, and improved awareness of the levers that could impact our performance into the future.
EBIT surplus of $1 million
Equity up 2% on previous year to $41.3 million
Debt/Equity ratio reduced from 8% to 2%
Fisheries and Food Safety compliance targets achieved
Implementing our culture of excellence and continuous improvement is taking shape
Koura earnings $748,000 down 20% on previous year
Inshore finfish earnings $833,000 up 10% on previous year
Our future game plan
Over the last 12 months we have spent time refining how areas of the business will operate. I believe the game plan that will best serve us in terms of growth and financial performance and create the opportunities for our people into the future is now locked in.
HONOURING OUR LEGACY
We will honour our legacy in continuing to manage and protect the assets and resources our tipuna fought so hard for. This includes enhancing our social licence within the sector and community using our beliefs and behaviours to guide us.
We will grow our future through developing a consumer focused branded products business that creates authentic seafood experiences delivered to customers nationally and globally who demand high quality products and outstanding service with an amazing story poured over the top. Currently we operate pieces of that strategy puzzle with a regional retail presence through ‘Real Fresh’ shop and mobile trucks and Ahia smoked fish branded products through national wholesale channels. We will need to align and improve the performance of these with our consumer branded products strategy which has been finalised.
The strategic plan requires clear goals to deliver the improved performance and growth required. The goals for the year 2020 have been set to deliver;
- an Asset Base of $45 million,
- an EBIT of $3 million, and
- a skilled workforce of 40+ fully employed staff.
These goals have been broken down into manageable annual goals that specifically target key challenges to address.
With goals, key performance targets, and actions locked in management is already monitoring and discussing progress. The board is updated monthly which provides an opportunity to discuss progress or make any adjustments required. This model promotes transparency and accountability which is critical for our success.
Internally we continue to talk and update staff on progress and recognise performance. Externally we will outline our strategic plan to shareholders in regular communications through familiar Nati channels. Enhancing our social licence is an important challenge for all of us in this regard which we are keen to address. As advocates for healthy oceans we will be more active in protecting our resources and environment which requires your assistance also, so watch this space.
A critical measure in building confidence within our team and for the business is to deliver consistent results against targets set. Achieving targets set and improving profitability represents a sharper focus for the business that will require outstanding leadership with skilled and experienced people. I look forward to this challenge and presenting our progress to you.
Ngati Porou Seafoods Group
As always, I would like to thank my fellow directors for their support during the year. I would also like to thank management and staff for their efforts during a year of challenges as we reset our focus towards the future with excitement and confidence. In particular, I would like to take this time to acknowledge the service on the board of Geoff Milner who is stepping down to pursue opportunities in the Health sector. Geoff has served 10 years on the board commencing in 2007. He has contributed significantly through his financial expertise and chairmanship of the audit, risk, and finance committee through a period of growth, uncertainty and many challenges confronting the business. His dedicated support for the business enables the ongoing success of Ngati Porou Seafoods and for that I thank him on behalf of us all and wish him well in his new endeavours.
Heoi ano, tena kotou katoa,
Ngati Porou Seafoods Group