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Annual Report 2013 -2014 Annual Report 2013 -2014 Northpower Transmission Line Mechanic Lenny Goodwin. Northpower Annual Report 2013-2014 The Board of Directors is pleased to present the Annual Report of Northpower Ltd and its subsidiaries (West Coast Energy Pty Ltd and Northpower Western Australia Pty Ltd) for the year ended 31 March 2014. Warren Moyes (Chairman) David Ballard Russell Black Nikki Davies-Colley Ken Hames Michael James John Ward For and on behalf of the Board of Directors. Warren Moyes Nikki Davies-Colley Chairman Director “safe, reliable, hassle free service” Table of contents Northpower Annual Report 2013-2014 Chairman’s report 1 Chief Executive’s report 3 Financial overview 6 Northpower’s Network 9 Northpower New Zealand Contracting 12 West Coast Energy 16 Our fibre network 17 Pacific Islands 18 Northpower Electric Power Trust 19 Safety and achievements 20 Community and sponsorship 23 Financials 28 Board of Directors’ report 31 Directors’ responsibility statement 32 Governance statement 33 Statement of service performance 34 Comprehensive income statement 35 Balance sheet 36 Statement of changes in equity 37 Cash flow statement 38 Notes to financial statements 39 Directory 79 “safe, reliable, hassle free service” ChaiRMAN’S RepoRT It’s not often you can Having recently opened our new depot in Perth, I see reflect on a career our growth only strengthening. We have put a stake role spanning 21 years in the ground and will continue to service our clients but as I look back on well while growing our profitability. Without the well Northpower’s success considered support of the Northpower Electric Power over the past 12 months Trust this would not have been possible. there is plenty to contemplate. And under the leadership of Chief Executive Sean Horgan, WCE is well-positioned to prosper in the I became a Deputy Chairperson of Northpower in 1990 years ahead. The opening of a new head office in Perth and was elected Chairperson in 1993, remaining in the is a significant move that emphasises our readiness for role since. longevity. We have clearly put a stake in the ground as a long term and solid contractor of choice for Australian In 1991, when solely an electricity network company, electricity networks. Northpower had an asset value of $52m and annual revenue of $54m. Those figures have risen dramatically Northpower has a culture of integrity, hassle free in the decades since - to $423m and $308m respectively service, and transparency; WCE shares this vision and at the close of the 2013/2014 financial year. Two ethos and as a result has established some very solid successive years of record group revenue and group relationships in the tough Australian market which profit suggest the company is on a solid foundation. is positive after putting ourselves so far out of our comfort zone with the expansion of our contracting Northpower is now a leader in its field, from contracting division there seven years ago. With risk comes reward and fibre communications to innovation and the best in and this is a prime example of just that. service delivery. Similarly, the Board of Directors openly encouraged the I see six key areas that have led to this positive expansion into fibre communications in 2007 and what growth and success – the maturing of our Australian a remarkable journey that has been. We were awarded subsidiary, West Coast Energy; the Whangarei Ultra- one of the first Ultra-Fast Broadband contracts in 2010 Fast Fibre network; the numerous awards collected by which saw Northpower take on the Whangarei UFB (mainly) individuals and the company as a whole; the fibre network. consolidation of our New Zealand Contracting; the ongoing drive for the highest of safety standards in the It has taken only three years to build a greenfields company; and the unique culture created and cultivated network to 19,117 Whangarei homes, businesses, by everyone within Northpower – under the leadership healthcare and education facilities. We finished ahead of Chief Executive Mark Gatland. of time to a high standard, which prompted a very complimentary response from Prime Minister John Key. Few New Zealand businesses survive when embarking on an Australian expansion. For the Northpower I am so proud of our fibre team for the drive, enthusiasm, Directors, much like the expansion into the contracting passion and innovation they have shown to complete, marketing in the New Zealand electricity sector in the in such a short space of time, New Zealand’s first and late 1990s, the Australian move was a strategic goal that fastest UFB fibre network. Don’t get me wrong, it was had to succeed. We launched in Australia in 2007. The by no means easy but our people and contractors made Global Financial Crisis hit the following year and while the sacrifices because they believed in the outcome. many more established companies folded around us, We will look back in history at this infrastructure build we held on. It was not easy. Over the past two years and realise how immense its impact has been on our we have turned these tough times into a cash flow society – not just for Whangarei but the wider areas positive operation. So many years after stepping out of Northland. We can’t fathom the reach at this stage – of our comfort zone, we began to hit our straps as we just as we couldn’t with electricity a century ago – but believed we would always do. what it will enable in our community will surprise. We have a long way to go but we are now a valued player I look also at the number of industry awards we in the Australian electricity sector with many established continue to collect. This is a source of satisfaction. So contracts amongst some of Australia’s largest electricity many of these are down to individuals excelling in their lines companies. professions, yet much of what they do is of benefit to 1 Northpower Annual Report 2014 ChaiRMAN’S RepoRT the wider electricity sector. And much of the backbone Northpower has transformed itself from a Power Board of these awards is a backbone of safety. That is the of old to a multi-disciplinary infrastructure specialist Northpower way. with a culture that I can only describe as unique. The positivity in the business runs true in every employee I I look at Business Support general Manager Barbara have ever come across and there is genuine excitement Harrison winning a Prime Ministerial Scholarship and as to the current achievements, future challenges and Field Services Safety and HR Manager Vern Rosieur looming opportunities. being recognised as follows: 2014: Safeguard NZ Workplace Health & Safety Awards - Most influential Former Chief Executive John Ward set the standard Employee. They are both genuinely good people driven and, when he handed the mantle to Mark Gatland in to do their best in their professions but always with an 1998, the journey continued. John once told me the best eye to helping others. business decision he ever made was to appoint Mark as his successor and what Mark has done in leading the And of course such recognition comes on the back of business, and empowering employees and colleagues Northpower being voted New Zealand’s best lines is outstanding. While he is often reticent at accepting company of the year in 2013, due to the fact we have accolades, he is deserving of many. such high levels of network reliability and customer service. The Northpower Network business, under Northpower recognises the needs of its clients and the management of Graham Dawson, continues to takes them on its own journey. A key to this future strengthen its performance by planning well and state continuing is to have leaders the equal of Mark investing prudently to ensure customers have little who are willing to push boundaries and believe. Mark to worry about. Even in storm conditions the power himself believes the greatest achievement of any Chief restoration times are impressive. Executive is when his people succeed. Again, that is shown in the multitude of awards the company has Around the same time, Northpower collected the 2013 collected over the years. Electrical Engineers’ Association Workplace Safety Award for a display of mannequins dressed in burnt PPE For over two decades Northpower has kept my mind following flashover incidents. challenged and busy and for a man who gets bored easily, it has been the ultimate company to lead. This display has been extensively toured around New Zealand and has drawn an overwhelmingly positive So as the longest challenge and perhaps the biggest response from our industry and, more latterly, chapter in my professional directorship career comes to government, for the impact it has by showing the implicit a close, I am proud to reflect on 21 years of achievement dangers of our industry. Like other electricity network as Chairman – thanks to the backing of various companies, we want our staff going home safely to governance and executive management teams – and a their families every day. Ultimately we don’t want any company that has matured from a local electricity lines injuries to our people and we will continue working business to an international, multi-disciplinary business. towards that goal. Safety is what drives the very essence of Northpower’s New Zealand Contracting operation I am stepping aside to allow another future leader to steer – by far the largest business unit in the company. The an exciting future for Northpower and that is good news business has consolidated well this financial year as for the consumer owners of Kaipara and Whangarei. clients value the service we provide and our people continue to provide a great end result.
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