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ANNUAL REPORT 2019 CONTENTS Rārangi Upoko Te Rāhui Rēhia o Kaiteretere Pūrongo ā-Tau 2019 ANNUAL REPORT 2019 CONTENTS Rārangi Upoko Performance 4 Chair / CEO Report 6 Vision, Mission, Values 11 Annual Plan 12 Guest Services – improved systems management and increased occupancy 15 Operations – attention to detail in maintenance and housekeeping 19 Kaiteriteri Store – delivering value to visitors and community 23 Food and Beverage – establishing the new product 27 Kaiteriteri Mountain Bike Park – managing the risks from fire 31 Whakapakoko 35 Community and Environment 37 Governance 44 Financial Report 46 Directory 62 © LB Photography PERFORMANCE Te Hua Mahi Kaiteriteri Store Kai & GoneBurgers $2.14m $2.16m REVENUE REVENUE Concessions & Sundry Camp & Apartments $2.45m $113k REVENUE REVENUE 4 PERFORMANCE 46 Full-time 108 Peak season EMPLOYEES EMPLOYEES Cleaning products, Events, community & waste & consumables marketing promotions $218k $140k EXPENDITURE INVESTMENT Kaiteriteri Maintenance of beach, Mountain Bike Park grounds & assets $49k $205k INVESTMENT INVESTMENT PERFORMANCE 5 CHAIR / CEO REPORT Te Pūrongo a te Heamana me te Tumu Whakarae 6 CHAIR / CEO REPORT 2019 was a very good year for the With capital projects and major refurbishing of Kaiteriteri Recreation Reserve, both the restaurant completed in the previous year, FY financially and through the successful 2018 – 19 focused on systems, staff training, service, execution of many exciting initiatives that partnerships, environmental operations and marketing, are a feature of the Reserve’s relatively with all being initiated, implemented, monitored and measured. These were areas of business that had unique social enterprise model. been identified as holding potential for improvement Although our summer was very busy, shoulder and the overall execution of the Reserve’s strategic seasons have been extended and we are now heading planning contributed to the excellent result. towards being a robust four-season destination Combined net profit (excluding depreciation and thanks to the hard work of the Reserve’s leadership disposal of assets) for the three business groups was team, staff and community partners. Climatic impacts up 5% on budget at $1,274,632 and up 43% on last again affected our operations but this year it was fire year’s result. When combining concession revenue and and not the storms and flooding that marked 2018. additional wider Reserve expenditure, the net result was Such events are only going to be more frequent, up 19% on budget and up 99% on last year. It should reinforcing the importance of sustainable operations be noted however that last year’s results were impacted and thorough planning for resilience and civil defence. by the restaurant’s refurbishment and rebranding programmes instigated early in the 2018 FY. FINANCIAL PERFORMANCE Income for all three business groups was above The Reserve is an entirely self-funding Crown entity, so a budget and considerably up on last year’s actuals. financially successful business operation is essential in order to perform and meet our obligations to the Crown 2019 ($) Budget 2018 ($) and Iwi. Weather as always plays a role in results and the Store 2,143,355 1,959,100 1,927,183 peak summer season was characterised by long, sunny, dry days with little precipitation. At one point it could be Camp 2,450,149 2,321,082 2,264,552 said that the weather was “too” hot and was keeping Restaurant 2,158,483 2,124,000 1,915,654 some people indoors and away from the beach, seeking shelter from the harsh sun. The Reserve still primarily The result is an output of good operating discipline caters to the domestic market, and as a gateway to during the busy summer season plus the product the Abel Tasman National Park, it also attracts a high development and marketing throughout the year proportion of overseas tourists travelling with concession especially targeted at shoulder and winter periods. operators on daily or longer visits into the Park. CHAIR / CEO REPORT 7 This has also assisted with positive cashflow for longer This is the highest level of F&B income in the Reserve’s periods. Cashflow tracked higher and extended further history. Expenditure to sales for the year is at 54% out in the year before dipping during our quieter which is an improvement on last year’s 62% but is still months. A marked difference to previous years. above the budgeted 51%. Driving this result were wages, consumable purchases and repairs and maintenance. Kaiteriteri Store The building blocks for optimum F&B performance Of all the business groups, the store is most affected are in place and notwithstanding wider issues around by seasonality and the lack of residential population. It labour shortages, weather and food costs, the guest is however open throughout the year, providing a great experience will further improve with amendments community resource and facilitating staff retention. to the operating model, training and front of house Last year’s result was good, and this year’s result is leadership. The Board and CEO are of the view that the even better which is very commendable. Total sales at Reserve is now in a better position to further capitalise $2,143,355 are up 11% on last year and up on budget by on the rebranding and refurbishment of the restaurant. 9.4% due to good buying, value and better assets to reduce queuing. GP has been lifted to 36% against last RESERVE MANAGEMENT year’s 35% and expenditure, including wages relative The Reserve had intended to implement a significant to sales, has been well controlled. The costs to income new QHSE system during FY 2018 – 19 but it was ratio of 29% sits well against the budgeted 31% and determined that further research was required and a is better than last year’s 30%. The net result before very capable system, Mango-Live, will be implemented depreciation is a surplus of $181,601. from November 2019. As a 24 hour, 7 day a week Guest Services and Operations multi-faceted business, much emphasis is placed on staff and visitor H&S. Ongoing work at a strategic Efforts to extend the visitor season has seen an level with the H&S Business Leaders Forum has increase in planned activities. Mountain biking, events, provided the Reserve with better tools and knowledge, meetings and conferences forms our strategy to deliver particularly in the areas of risk analysis, hazard sustainable income and mitigate profit variability by mapping, controls and wellbeing. Outside of the reducing the duration and extent of the traditional low very unfortunate death of one of our long-standing season. Strong demand for our apartments coupled guests due to natural causes, no serious incidents or with dynamic pricing models across all covered accidents occurred. Further support around people accommodation has helped deliver a record income of and culture has also been provided through the work $2,450,149 which is a 6% increase on budget and up 8% done by our HR partners Intepeople. on last year. Much work was completed remediating sites and improving facilities. Expenditure sits at $1,777,493 2019 saw the implementation of important HR and which is on budget and up by 2% on last year. A net financial software TimeDock and Xero. The ongoing result before depreciation of $905,299 is 17% up on Xero project is quite substantial and will greatly improve budget and 18% above last year. A great result through the Reserve’s financial functions. Allied to this, is hard work by management and all team members. work facilitated by Malloch McClean around KPIs and dashboarding for improved management reporting. Food and Beverage TimeDock is a time recording system that provides more The restaurant has just completed its first full year efficient and accurate recording of hours for payroll of trading in its current branded and operational and other HR requirements. All staff were surveyed in format and has made significant gains over the November with great feedback received in the areas of previous year. The focus for this year was on the culture, purpose and direction, communication, team customer experience and expenditure control with work, management, learning and development, reward improvements seen in both due to the efforts of the and recognition, customer focus and job satisfaction. team. There are still some variables and finetuning to Concession fees were reviewed as part of a wider be considered around workflows, communications and project by the Department of Conservation, with some systems. Income at $2,158,483 is above budget increases coming into effect in November 2019. by 2% and above last year by 13%. The net result The Reserve received $113,000 in concession income before depreciation is a surplus of $183,374. While in FY 2018 – 19. All revenue from concessionaires is GP at 63% is above last year’s 62%, it is down on the invested back into the Reserve, including amounts budgeted 65% due in the main to cost variability. paid by Spark New Zealand, Vodafone and 2Degrees. 8 CHAIR / CEO REPORT Tourism concessionaires are an important part of the It was great to be acknowledged by HAPNZ during their Reserve’s destination ecosystem and include: annual conference as the Reserve won the TIA award for Innovation in Sustainability. Further to this, a baseline • Abel Tasman Sea Shuttles and Kaiteriteri Kayaks environmental report by Davidson Environmental was • Wilsons Abel Tasman completed surveying Kaiteriteri Estuary, the tidally flushed • Abel Tasman Eco Tours lagoon, Kaiteriteri Beach, the tidal channel seaward of the main bridge, the rocky coastline around Kaka Point, • Abel Tasman Sailing Adventures streams and adjacent terrestrial fringes. This provides a • Abel Tasman Soul Ltd solid foundation of knowledge for future restoration and • Waka Abel Tasman for the environmental partnerships we have with Tasman Bay Guardians and other local community groups.
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