43 Attachment 2
Transwaste Canterbury Limited
Interim Report
For the six months ended 31 December 2010
The Board of Directors is pleased to present the Interim Report of Transwaste Canterbury Limited for the six months ended 31 December 2010 44 Transwaste Canterbury Limited Interim Report
Contents
Page
Directory ------3
Directors’ Report to the Shareholders ------4 - 7
Statement of Objectives and Performance ------8 - 12
Consolidated Interim Statement of Comprehensive Income - 13
Consolidated Interim Statement of Changes in Equity ------14
Consolidated Interim Balance Sheet ------15
Consolidated Interim Cash Flow Statement ------16 - 17
Notes to the Consolidated Interim Financial Statements ------18 - 23
(2) 45 Transwaste Canterbury Limited Interim Report
Directory
Company Number CH951024
Registered Office and PricewaterhouseCoopers Address for Service PricewaterhouseCoopers Centre Level 12, 119 Armagh Street Christchurch
Directors Mr W G Cox (Chairperson) Mr G H Clemens Mr R J Brine Ms S A Buck Ms J A Burgess Mr R B McKenzie Mr T H Nickels Mr G S James
Shareholders No of Shares (Ordinary) Canterbury Waste Services Limited 10,000,000 Christchurch City Council 7,780,000 Selwyn District Council 600,000 Ashburton District Council 600,000 Hurunui District Council 240,000 Waimakariri District Council 780,000 20,000,000
Company Secretary PricewaterhouseCoopers PricewaterhouseCoopers Centre Level 12, 119 Armagh Street Christchurch
Auditors Audit New Zealand on behalf of the Office of the Auditor-General
Solicitors Buddle Findlay Chapman Tripp Level 13, Clarendon Tower PricewaterhouseCoopers Centre 78 Worcester Street Level 7, 119 Armagh Street Christchurch Christchurch
Bankers Westpac Banking Corporation 93 Armagh Street Christchurch
Principal Activity To own, operate and continue development of a non-hazardous regional landfill in Canterbury.
(3) 46 Transwaste Canterbury Limited Interim Report
Directors’ Report to the Shareholders For the six months ended 31 December 2010
Your Directors take pleasure in presenting their Interim Report including the financial statements of the group for the six months ended 31 December 2010.
Principal Activities The company was incorporated on 31 March 1999 with the principal purposes of selecting, consenting, developing, owning and operating a non-hazardous regional landfill in Canterbury. All activities to date have been in accordance with those purposes. Landfill operations commenced in June 2005.
There has been no material change in the nature of the business of the company during the period.
On 1 July 2004, the company purchased 100% of the shares in Tiromoana Station Limited from Canterbury Waste Services Limited. Tiromoana owns the property within which the landfill site is located, and farmed it until 18 June 2008 at which point farming operations ceased.
State of Affairs The results of operations during the period, financial position and state of affairs of the group are as detailed in the accompanying financial statements.
Directors’ Remuneration 6 months 2010 6 months 2009 Directors Other Directors Other Fees Remuneration Fees Remuneration
Mr W G Cox 17,000 - 17,000 - MrGHClemens 10,000 6,000 10,000 6,000 Mr R J Harris - - 11,000* - Mr R J Brine 10,000 - 10,000 - Ms S A Buck 10,000 - 10,000 - Ms J A Burgess 10,000* - 10,000* - Mr R B McKenzie 11,500* - 11,500* - Mr T H Nickels 10,000* - 10,000* - Mr G S James 11,000* - - -
* The Directors fees for these directors are paid to the companies they represent.
All directors’ fees are in respect of the parent company. Board members who are appointed by the parent to represent it on the board of a subsidiary do not receive additional directors’ fees. The directors of the subsidiary, Tiromoana Station Limited, are Messrs G H Clemens and G S James.
(4) 47 Transwaste Canterbury Limited Interim Report
Directors’ Report to the Shareholders (Continued) For the six months ended 31 December 2010
Mr G H Clemens received remuneration totalling $6,000 for the six month period (2009: $6,000) for maintaining a prudential supervisory role with Tiromoana Station Limited, including management of the real estate owned by the group. Payment is made directly by Tiromoana Station Limited. No other remuneration or benefits have been paid to directors. The fees and remuneration have been entered in the interests register.
Directors’ Interests The group is required to maintain an interests register in which the particulars of certain transactions and matters involving the directors must be recorded. The interests register for the company is available for inspection by shareholders at the registered office.
The directors have disclosed an interest in the following entities pursuant to section 140 of the Companies Act 1993:
MR W G COX
Position Held Elastomer Products Limited Director Mainpower New Zealand Limited Director Coolpak Coolstores Limited and subsidiary Director Independent Fisheries Limited Director Talbot Technologies Limited Director Barlow Brothers NZ Limited Director VBase Limited and subsidiaries Director Development West Coast Advisory Board Member Christchurch Civic Building Joint Venture Board Member
MR G H CLEMENS
Position Held Saint Columbe Company Limited Director Strategy One Limited Director G2 Investments Limited Director SICON Limited Director Sea Harvest International Limited Director Fungi New Zealand Limited Director Tiromoana Station Limited Director Shamrock Industries Limited Advisory Board Member Rakaia Engineering & Contracting Limited Director
(5) 48 Transwaste Canterbury Limited Interim Report
Directors’ Report to the Shareholders (Continued) For the six months ended 31 December 2010
MR G J JAMES
Position Held Otago Southland Waste Services Limited Director Tiromoana Station Limited Director
MR R J BRINE
Position Held Waimakariri District Council Councillor North Canterbury Sports & Recreation Trust Trustee TerraNova Charitable Trust Trustee
MR T H NICKELS
Position Held Transpacific Industries Group (NZ) Limited plus various wholly owned subsidiaries Director Midwest Disposals Limited Director Otago Southland Waste Services Limited Director Greater Auckland Netball Limited Director
MS S A BUCK
Position Held Christchurch City Council Councillor TerraNova Charitable Trust Trustee
MS J A BURGESS Position Held
Canterbury Waste Services Limited Director Living Earth Limited Director Habitat For Humanity Lower North Island Limited Director
MR R B MCKENZIE Position Held
Various wholly owned subsidiaries of Transpacific Industries Group (NZ) Limited Director Canterbury Waste Services Limited Director Midwest Disposals Limited Director Living Earth Limited Director Le Quality Group Limited Director
(6) 49 Transwaste Canterbury Limited Interim Report
Directors’ Report to the Shareholders (Continued) For the six months ended 31 December 2010
All transactions the group has entered into with parties in which directors hold directorships have been entered into in the ordinary course of business.
Information used by Directors No member of the Board of Transwaste Canterbury Limited issued a notice requesting to use company information received in their capacity as directors which would not otherwise have been available to them.
Indemnification and Insurance of Officers and Directors The group indemnifies all directors named in this report against all liabilities (other than to the company) that arise out of the performance of their normal duties as director, unless the liability relates to conduct involving lack of good faith. To manage this risk, the company has indemnity insurance. The annual cost of this insurance is $12,450.
Recommended Dividend The general policy for the company is to declare dividends calculated at 100% of the parent company net profit after tax after allowing for working capital requirements, as set out in the company’s Statement of Intent. Dividends of $1,200,000 were paid during the six month period ended 31 December 2010.
As at 25 February 2011, the date the Board approved the interim financial statements, no recommendation on an interim dividend for the year ending 30 June 2011 had been made. The quantum and timing of the dividend will be determined by the Board prior to 30 April 2011.
Donations The parent company made a donation of $30,000 to the Kate Valley Landfill Community Trust (2009: $40,000) during the period.
Auditor’s Remuneration The auditor of the Group is Audit New Zealand
The annual remuneration for auditing services provided by Audit New Zealand was $36,000. No other services were provided by the auditor.
(7) 50 Transwaste Canterbury Limited Interim Report
Statement of Objectives and Performance For the six months ended 31 December 2010
Targets were set under the Statement of Intent for the three years ending 30 June 2013. A comparison of achievement against those targets is as follows:
Objective Shareholder Interests: To operate a successful business, providing a fair rate of return to its shareholders.
Desired Outcomes Performance Measures Progress Toward and Target (for Year Achievement Ending 30 June 2011) To effectively operate the Total annual landfill revenue Forecast landfill revenue for consented regional landfill at Kate (inclusive of waste levy) of the full year is $28,752,000. Valley to achieve specific $26,629,000 The annual tonnage of waste commercial performance targets: to landfill is forecast to be 9% higher than budget.
Annual landfill EBIT of Estimated full year EBIT of $9,267,000 $10,176,000, as a result of higher than budgeted waste to landfill.
Average return on invested Estimated full year average capital of 9% return on invested capital of 9%.
(8) 51 Transwaste Canterbury Limited Interim Report
Statement of Objectives and Performance (Continued) For the six months ended 31 December 2010
Objective Healthy Environment: To ensure that the company and its associates meet or exceed present and future environmental standards in a manner which is consistent with the preservation of the natural environment and the careful and sustainable management of natural resources
Desired Outcomes Performance Measures Progress Toward and Target (for Year Achievement Ending 30 June 2011) (a) No proven breaches of Nil proven consent Achieved. Resource Management Act breaches. consents.
(b) Maintenance of an Value of Performance A financial assurance bond appropriate risk funding Guarantee posted at to the consenting authorities mechanism to cover required level for landfill is in place to the value environmental risk. stage (year 6). required for the landfill stage.
(c) Implement the Nil enforcement actions by Achieved. Environmental Policy. consent authorities. (d) Continue to implement the 4,000 plants of native In progress; on target to native forest restoration species planted during the plant 4,000 native trees project in accordance with year. during the year. the Tiromoana Bush Management Plan.
(9) 52 Transwaste Canterbury Limited Interim Report
Statement of Objectives and Performance (Continued) For the six months ended 31 December 2010
Objective Corporate Citizenship: To be a responsible Corporate Citizen by acting lawfully, fairly and honestly and to be sensitive to local issues.
Desired Outcomes Performance Measures Progress Toward and Target (for Year Achievement Ending 30 June 2011) (a) To ensure compliance with Nil contractual non- Achieved. No contractual any contractual compliances. non-compliances. arrangements.
(b) To ensure compliance with Nil legislative and regulatory Achieved. No legislative and all relevant legislative and non-compliances. regulatory non-compliances. regulatory requirements.
(c) Annual review to report to Annual review published by In progress. its stakeholders and the October 2010 for the community within which it 2009/10 year. operates, reporting on social, environmental, and financial performance.
Objective Service Quality: Meet the present and future needs of the people of Canterbury with high standards of value, quality and service and establish effective relations with customers.
Desired Outcomes Performance Measures Progress Toward and Target (for Year Achievement Ending 30 June 2011)
(a) Timely, high quality and Empty containers are Achieved. There have been reliable transport available for transfer stations 0 hours where containers services. for more than 99.5% of were unavailable to transfer waste transport fleet hours stations out of 19,299 hours worked. of operation, representing 100% performance. (b) Reliability of access to the Landfill is available to waste landfill. transporters for more than Achieved. No disruption of 99% of normal annual waste transport services transport access hours. occurred, despite the landfill being closed due to high wind on 6 days for 34 hours in total.
(10) 53 Transwaste Canterbury Limited Interim Report
Statement of Objectives and Performance (Continued) For the six months ended 31 December 2010
Objective Good Employer: Be a Good Employer. Strive for zero injury accidents in all operations the company and its main contractor, Canterbury Waste Services Limited, will be responsible for, whilst maintaining a high level of service and production. To ensure that Canterbury Waste Services Limited adheres to the performance targets set out under this clause.
Desired Outcomes Performance Measures Progress Toward and Target (for Year Achievement Ending 30 June 2011) (a) Adopting objectives and Less than 10% annually of On track. Turnover of policies that detail the CWS landfill and transport permanent employees was 0 relationship with staff annual FTE turnover. at landfill and 0 in transport employees, their out of 38.2 FTEs, resulting in remuneration, safety and 0% turnover. other issues such as equal opportunity in employment.
(b) Ensuring that its 10 hours per FTE annually Achieved. CWS landfill and employees have secure for CWS landfill and transport staff have and rewarding transport staff annual hours undertaken 251 hours of employment which on external training. external training in the provides the means for period, equivalent to 13 personal development. hours per FTE annually.
(c) Clearly defining the Operational performance as performance standards reported in Landfill Annual On track. Landfill Annual expected of all employees Report and Peer Review Report for 2009/10 received and by appropriate action Annual Report, to the by the Board in November mechanisms ensuring that Board’s satisfaction. 2010. these standards are met.
(d) Ensuring that in all Nil CWS Lost Time Injuries Achieved. CWS LTI activities the company per 100,000 hours worked. frequency rate at 31 and its contractors have December 2010 was 0.0 Health and Safety LTIs per 100,000 hours Management Plans in worked. place.
(11) 54 Transwaste Canterbury Limited Interim Report
Statement of Objectives and Performance (Continued) For the six months ended 31 December 2010
Objective Consultation and Community Relations: Establish and maintain good relations with the local host community of the landfill and consult with that group and other interest groups (including Tangata Whenua) on issues that are likely to affect them.
Desired Outcomes Performance Measures and Progress Toward Target (for Year Ending 30 Achievement June 2011)
(a) Finance the trust fund Annual payment to Kate Valley An interim payment of (from the Disposal Landfill Community Trust, to be $30,000, based on the prior Charge) for the determined on an annual basis. year, was made during the purpose of benefiting period. Any further the local community contribution will be immediately affected determined by the Board by the landfill during February 2011. operation.
(b) Consult with the host Nil complaints regarding landfill Not achieved. Two community operations. complaints received concerning landfill regarding odour. operations by way of direct communication No more than one complaint per and via the 2,000 trips regarding waste Not achieved. Four Community Liaison transport operations. complaints in 5,882 trips in Group. period.
(c) Consult with interest groups including At least two Community Liaison Achieved. Two Community Tangata Whenua on a Group meetings held per year. regular basis and Liaison Group meetings held discuss all issues in period. likely to affect them.
(12) 55 Transwaste Canterbury Limited Interim Report
Consolidated Interim Statement of Comprehensive Income For the six months ended 31 December 2010
December December June 2010 2009 2010 Note $’000 $’000 $’000 Interim Interim Annual Revenue Sales 2 15,365 12,467 24,568 Rental & Other 35 213 153 Interest - 20 20 Changes in fair value of forestry - - 68 Total Revenue 15,400 12,700 24,809
Expenses Audit fees - Annual audit 20 20 37 Depreciation and amortisation 1,267 1,074 2,116 Changes in fair value of forestry - 93 - Impairment of receivables 1 - 87 Employee benefits costs 96 95 191 Landfill operating expenses 6,451 5,960 12,573 Loss on sale of property, plant and equipment 3 - 22 41 Waste levy 2 1,295 1,095 2,151 Other operating expenses 933 659 1,110
Total Expenses 10,063 9,018 18,306
Profit before finance costs and tax 5,337 3,682 6,503
Finance costs 947 967 1,891
Profit before tax 4,390 2,715 4,612
Income tax expense 1,317 738 794
Profit for the period 3,073 1,977 3,818 Other comprehensive income Cash flow hedges, net of tax (56) 36 (563) Other comprehensive income for the period (56) 36 (563) net of tax Total comprehensive income for the period 3,017 2,013 3,255
The notes on pages 18-23 form an integral part of this condensed consolidated interim financial information.
(13) 56 Transwaste Canterbury Limited Interim Report
Consolidated Interim Statement of Changes in Shareholders’ Equity For the six months ended 31 December 2010
Contributed Other Retained Total equity reserves earnings equity Note $’000 $’000 $’000 $’000
Balance 1 July 2009 16,000 219 4,502 20,721 Profit for the period - - 1,977 1,977 Other comprehensive income: Cash flow hedges, net of tax - 36 - 36 Total comprehensive income for the - 36 1,977 2,013 period ended 31 December 2009 Dividend 4 - - - - Balance 31 December 2009 16,000 255 6,479 22,734
Balance 1 July 2010 16,000 (344) 5,420 21,076 Profit for the period - - 3,073 3,073 Other comprehensive income: Cash flow hedges, net of tax - (56) - (56) Total comprehensive income for the - (56) 3,073 3,017 period ended 31 December 2010 Dividend 4 - - (1,200) (1,200) Balance 31 December 2010 16,000 (400) 7,293 22,893
Balance 1 July 2009 16,000 219 4,502 20,721 Profit for the period - - 3,818 3,818 Other comprehensive income: Cash flow hedges, net of tax - (563) - (563) Total comprehensive income for the - (563) 3,818 3,255 period ended 30 June 2010 Dividend 4 - - (2,900) (2,900) Balance 30 June 2010 16,000 (344) 5,420 21,076
The notes on pages 18-23 form an integral part of this condensed consolidated interim financial information.
(14) 57 Transwaste Canterbury Limited Interim Report
Consolidated Interim Balance Sheet As at 31 December 2010
December December June 2010 2009 2010 Note $’000 $’000 $’000 Interim Interim Annual Assets Non-current assets Property, plant and equipment 3 51,430 52,564 52,434 Forestry 1,273 1,075 1,142 Other investments 19 19 19 Derivative financial instruments - 255 - Total non-current assets 52,722 53,913 53,595
Current assets Cash and cash equivalents 391 235 310 Trade and other receivables 3,129 8,168 2,373 Income tax receivable 3,274 1,938 3,274 Total current assets 6,794 10,341 5,957
Total assets 59,516 64,254 59,552
Equity Contributed equity 16,000 16,000 16,000 Reserves (400) 255 (344) Retained earnings 7,293 6,479 5,420 Total equity 22,893 22,734 21,076
Liabilities Non-current liabilities Interest-bearing loans and borrowings 23,900 29,650 25,900 Provisions 2,232 2,073 2,150 Derivative financial instruments 400 271 344 Deferred income tax liability 7,426 6,053 6,109 Total non-current liabilities 33,958 38,047 34,503
Current liabilities Trade and other payables 2,486 3,473 3,740 Derivative financial instruments 106 - 202 Employee benefits 73 - 31 Total current liabilities 2,665 3,473 3,973 Total liabilities 36,623 41,520 38,476 Total equity and liabilities 59,516 64,254 59,552
The notes on pages 18-23 form an integral part of this condensed consolidated interim financial information.
(15) 58 Transwaste Canterbury Limited Interim Report
Consolidated Interim Cash Flow Statement For the six months ended 31 December 2010
December December June 2010 2009 2010 $’000 $’000 $’000 Interim Interim Annual
Cash flows from operating activities Receipts from customers 14,323 12,441 24,897 Interest received - - 20 Other revenue 35 120 153 Payments to suppliers and employees (10,058) (7,674) (14,837) Interest paid (960) (1,001) (1,918) Income tax paid - - (1,336) Goods and services tax (net) 335 135 (117) Net cash from operating activities 3,675 4,021 6,862
Cash flows from investing activities Proceeds from sale of property, plant & equipment - - 4,889 Purchase of property, plant & equipment (263) (665) (1,671) Purchase of forestry (131) (107) (106) Acquisition of investments - - - Net cash from investing activities (394) (772) 3,112
Cash flows from financing activities Repayments of borrowings (2,000) (3,750) (7,500) Dividends paid (1,200) - (2,900) Net cash from financing activities (3,200) (3,750) (10,400)
Net increase/(decrease) in cash, cash equivalents 81 (501) (426) and bank overdrafts
Cash, cash equivalents and bank overdrafts at the 310 736 736 beginning of the year
Cash, cash equivalents and bank overdrafts at the 391 235 310 end of the year
The notes on pages 18-23 form an integral part of this condensed consolidated interim financial information.
(16) 59 Transwaste Canterbury Limited Interim Report
Consolidated Interim Cash Flow Statement For the six months ended 31 December 2010
Reconciliation of profit for the period to net cash flow from operating activities
December December June 2010 2009 2010 $’000 $’000 $’000 Interim Interim Annual Profit for the period 3,073 1,977 3,818 Add/(less) non-cash items: Depreciation and amortisation 1,267 1,074 2,116 Loss/(Gain) on changes in fair value of forestry - - (68) Interest rate swap movement (96) (111) (181) Time value adjustment 83 77 154 Deferred tax 1,317 738 794 2,571 1,778 2,815
Add/(less) movements in working capital items: Receivables (1,043) (706) 1,198 Income tax payable - (8) (1,336) Forestry included in assets held for sale - - 94 Trade payables (926) 958 232 (1,969) 244 188
Add/(less) items classified as investing activities Net loss on sales of property, plant and equipment - 22 41 - 22 41
Net cash inflow/(outflow) from operating 3,675 4,021 6,862 activities
The notes on pages 18-23 form an integral part of this condensed consolidated interim financial information.
(17) 60 Transwaste Canterbury Limited Interim Report
Notes to the Consolidated Interim Financial Statements For the six months ended 31 December 2010
1. General Information
Reporting Entity and Statutory Base
Transwaste Canterbury Limited is a company registered under the Companies Act 1993 and is a Council Controlled Trading Organisation as defined in Section 6 of the Local Government Act 2002.
The company represents a joint venture between Canterbury Waste Services Limited (which is owned by Transpacific Industries Group (NZ) Limited) and five local authorities in Canterbury.
The Group consists of Transwaste Canterbury Limited and its wholly owned subsidiary, Tiromoana Station Limited. Both companies are incorporated and domiciled in New Zealand. The primary objective of the parent company is to select, develop and operate a non-hazardous landfill for the Canterbury region. The company owns the landfill and surrounding land via its subsidiary, Tiromoana Station Limited.
This condensed consolidated interim financial information was approved for issue by the Board on 25 February 2011.
This condensed consolidated interim financial information has not been subject to review or audit.
The reporting currency used in the preparation of these consolidated interim financial statements is New Zealand dollars, rounded to the nearest thousand.
Summary of Significant Accounting Policies
This condensed consolidated interim financial information for the six months ended 31 December 2010 has been prepared in accordance with NZ IAS 34, ‘Interim financial reporting’. The condensed consolidated interim financial information should be read in conjunction with the annual financial statements for the year ended 30 June 2010, which have been prepared in accordance with New Zealand equivalents to International Accounting Standards (NZ IFRS).
The accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting period.
(18) 61 Transwaste Canterbury Limited Interim Report
Notes to the Consolidated Interim Financial Statements For the six months ended 31 December 2010
Standards, amendments and interpretations issued that are not yet effective and have not been early adopted
Standards, amendments and interpretations issued but not yet effective, that have not been early adopted, and which are relevant to the company and group are:
NZ IFRS 9 Financial Instruments will eventually replace NZ IAS 39 Financial Instruments: Recognition and Measurement. NZ IAS 39 is being replaced through the following three main phases: Phase 1 Classification and Measurement, Phase 2 Impairment Methodology, and Phase 3 Hedge Accounting. Phase 1 on the classification and measurement of financial assets has been completed and has been published in the new financial instrument standard NZ IFRS9. NZ IFRS 9 uses a single approach to determine whether a financial asset is measured at amortised cost or fair value, replacing the many different rules in NZ IAS 39. The approach in NZ IFRS 9 is based on how an entity manages its financial instruments (its business model) and the contractual cash flow characteristics of the financial assets. The new standard also requires a single impairment method to be used, replacing the many different impairment methods in NZ IAS 39. The new standard is required to be adopted for the year ended 30 June 2014. Transwaste Canterbury Limited has not yet assessed the effect of the new standard and expects it will not be early adopted.
(19) 62 Transwaste Canterbury Limited Interim Report
Notes to the Consolidated Interim Financial Statements For the six months ended 31 December 2010
2. Revenue - Waste levy
Effective from 1 July 2009, a waste levy (currently levied at $10 per tonne of waste to landfill) is payable by the company to the Ministry for the Environment. The levy, totalling $1,295,000 for the six month period to 31 December 2010 (2009: $1,095,000), is on-charged to customers and the on-charge is included in sales revenue.
3. Property, plant and equipment
During the six months ended 31 December 2010, the group acquired assets with a total cost of $263,000 (31 December 2009: $757,000).
There have been no disposals during the six month period to 31 December 2010. The group, as part of its long-term Real Estate Plan, has divested the farming-related assets owned by the subsidiary, Tiromoana Station Limited. On 18 June 2008, the farming assets comprising livestock and plant and equipment were sold and the farming operations ceased at that date. A contract was also entered into for the sale of a part of the land not required by the group for its ongoing operations. This sale, totalling $5,000,000, was completed in December 2009, resulting in a net loss on disposal after all related costs of $41,000.
4. Dividends December December June 2010 2009 2010 $’000 $’000 $’000 Interim Interim Annual
Dividends paid or accrued during the year
Interim dividends1 - - 1,300 Final dividends2 1,200 - 1,600 1,200 - 2,900 1 Fully imputed interim dividend of $1,300,000 declared on 21 May 2010 and paid on 24 June 2010 (2009: $Nil) 2 Fully imputed final dividend for 2010 of $1,200,000 declared and paid on 20 August 2010 (2009: $1,600,000 on 19 February 2010)
(20) 63 Transwaste Canterbury Limited Interim Report
Notes to the Consolidated Interim Financial Statements For the six months ended 31 December 2010
5. Capital commitments and operating leases
December December June 2010 2009 2010 $’000 $’000 $’000 Interim Interim Annual Capital commitments contracted for at balance date but not yet incurred for 717 1,250 28 property, plant and equipment
There are no capital commitments in relation to forestry.
Operating leases as lessor
The group leases land not immediately required for its operations under operating leases. The majority of the leases are with one external party and have non-cancellable terms ranging from 3 years to 10 years.
The future aggregate minimum lease payments to be collected under non-cancellable operating leases are as follows: December December June 2010 2009 2010 $’000 $’000 $’000 Interim Interim Annual
Not later than one year 46 66 67 Later than one year and not later than 186 186 186 five years Later than five years 93 140 139 Total non-cancellable operating leases 325 392 392
No contingent rents have been recognised during the period.
6. Related party transactions
The company’s shareholders and the shareholders of Canterbury Waste Services Limited are considered to be related parties of the company. This includes the five territorial local authorities with shareholdings in the company, Canterbury Waste Services Limited and Transpacific Industries Group (NZ) Limited.
The company has entered into waste disposal and transport contracts with the related parties. The company also contracts with Canterbury Waste Services Limited for costs relating to the ongoing landfill construction, landfill disposal and transport services.
(21) 64 Transwaste Canterbury Limited Interim Report
Notes to the Financial Statements For the six months ended 31 December 2010
The following transactions were carried out with related parties:
December December June 2010 2009 2010 $’000 $’000 $’000 Interim Interim Annual (a) Sales of services
Associates (landfilling and transport) 10,973 10,826 20,958 Associates (rental) - - 5
10,973 10,826 20,963
(b) Purchases of services
Associates (waste disposal, transport and construction) 7,355 6,717 14,570 Associates (rates) 10 12 25 Associates (reimbursement of costs) 38 - 272 Associates (management services) 22 35 60
7,425 6,764 14,927
(c) Year end balances arising from sales/purchases of services
Receivables from related parties Associates 2,358 2,199 1,878
Payables to related parties Associates 1,287 1,519 2,887
Key management personnel
Directors’ fees and other short term employee benefits 95 95 191
Directors’ remuneration is detailed in the Directors’ Report to Shareholders on page 4.
No provision has been required, nor any expense recognised for impairment of receivables for any loans or other receivables from related parties (2009: nil).
(22) 65 Transwaste Canterbury Limited Interim Report
Notes to the Financial Statements For the six months ended 31 December 2010
7. Events occurring after balance date
There were no events post balance date that would cause a material misstatement to the financial information presented in this consolidated interim financial report.
8. Contingent liabilities and assets
Contingent liabilities December December June 2010 2009 2010 $’000 $’000 $’000 Interim Interim Annual
Bonds 11,112 10,112 11,112
Bonds of $11,112,500 (2009: $10,112,500) have been arranged with the parent company’s bankers in terms of resource consents granted to the company. It is anticipated no material liabilities will arise.
No material losses are anticipated in respect of the contingent liabilities.
The company has no material contingent assets as at 31 December 2010 (2009: nil).
(23)