Taranaki incorporation bounces back to profit

0
80

(Source | Waatea News) Paraninihi ki Waitotara Incorporation has bounced back from its disastrous foray into Australian property development to record a $3 million profit.

Chief executive Dion Tuuta says the turnaround came through improved rents on its 18,000 hectares of leased Taranaki farmland, good returns and better cost control on its own 13 dairy farms, a good result in its crayfish business and a 13-fold return on an investment in an American biotechnology company.

He says the investment in the Gabba Central apartment and retail development in Brisbane, which led to the $31 million loss two years ago, has been written off, and the 8500 shareholders are now looking to the year ahead.

The current season is proving to be very positive. Were about 40,000 kgs (of milk solids) ahead of budget, which is positive although we are in the hands of the weather gods and hopefully Fonterras price is going to improve but looking forward were also looking at implementing some managed farms so moving away from the 50-50 (sharemilker) model, Mr Tuuta says

Shareholders rejected a plan to sell residential land, and they are keen for the incorporation to pick up any leases that come up, at a fair price.

Parininihi ki Waitotara Incorporation also announced a Christmas dividend for its 8500 shareholders, celebrating a return to profitability.

It hasn’t paid a dividend since 2008, when it declared it’s disastrous loss after writing off its investment in a Brisbane apartment and retail development.

Mr Tuuta says while the 60 cent a share will deliver an average of only $84, shareholders have made it clear they want a regular dividend.

Dividend is important to them and its not necessarily the size of the dividend but its a recognition of their ownership interests and its a recognition of their link to the legacy of PKW which has been handed down to them from their families and so to a certain extent it is viewed in more than just economic terms, he says.

This year Paraninihi ki Waitotara Incorporation intends to shift two of its 13 farms to a fully managed rather than sharemilking model, so it can capture a bigger share of the milk cheque.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.