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Annual Report and Accounts for $30,000 to Ensure the Best Possible Start for Our Pre-Schoolers

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Annual Report and Accounts for $30,000 to Ensure the Best Possible Start for Our Pre-Schoolers A nnuAl Re poRt 2013 People, customer focus and performance deliver our purpose We seek to better our communities We will responsibly offer our products and services Integrity, trust and entrepreneurship are our competitive advantage CONTENTS 2013 T r u s T House Limi T e d 3 trust House limited – Director’s Report 4 trust House limited – operational Review 6 trust House limited – Financial Statements 8 trust House limited – Independent Auditors Report 34 T r u s T House FoundaT i o n 37 trust House Foundation – Financial Statements 38 trust House Foundation – Independent Auditors Report 48 m a s T e r T on Licensing Trus t 51 Masterton licensing trust – president’s Report 52 Masterton licensing trust – Chairman’s Report 53 Masterton licensing trust – Financial Statements 54 Masterton licensing trust – Independent Auditors Report 80 Masterton licensing (Charitable) trust – Grants Approved 82 F L axmere Licensing Trus t 85 Flaxmere licensing trust – president’s Report 86 Flaxmere licensing trust – Financial Statements 87 Flaxmere licensing trust – Independent Auditors Report 96 Flaxmere licensing (Charitable) trust – Grants Approved 97 Ta r a r ua F o u n daT i o n 9 9 tararua Foundation – Independent Auditors Report 107 d i r ec T o ry 112 2 3 4 5 6 1 1. Paul Hargood and navin Varghese – Copthorne Hotel & Resort 11. Bruce Willoughby – empire tavern 22. Tania Cantwell – trust House Support office Solway park, Wairarapa 12. Theresa Fawdray – trust House Support office 23. Tanya Spence – Rimutaka Sports Bar 2. Naomi law – the Bottle-o Feilding 13. Trent Hoar – Copthorne Hotel & Resort Solway park, Wairarapa 24. Jinny Jun Zittersteijn – Copthorne Hotel & Resort Solway park, Wairarapa 3. Jacqui Hoar – Copthorne Hotel & Resort Solway park, Wairarapa 14. Donna Shanahan – the Bottle-o pahiatua 25. Rick Bryant – the Horseshoe Complex 4. Richard Simmonds – trust House Support office 15. Wendy Donnelly – Copthorne Hotel & Resort Solway park, Wairarapa 26. Karen Herbert – trust House Housing 5. David lewis – the Bottle-o Masterton 16. Jeana Adams – Gusto Café 27. Ryan Willoughby – the Bottle-o Feilding 6. Jessica Clark – Copthorne Hotel & Resort Solway park, Wairarapa 17. Leeann Campbell – Copthorne Hotel & Resort Solway park, Wairarapa 28. Kiriana Brown – the pukemanu tavern 7. Shannon Woolston – Copthorne Hotel & Resort Solway park, Wairarapa 18. Gary McDowall – the pukemanu tavern 29. Jerry Crump – Copthorne Hotel & Resort Solway park, Wairarapa 8. Stephanie Murray – Copthorne Hotel & Resort Solway park, Wairarapa 19. Betty Hanlon – the Bottle-o Masterton 30. Peter Rickman – trust House Support office 9. Deanna Clement – trust House Support office 20. Raewyn Richardson – Rimutaka Sports Bar 31. Jane Cahill – Island Bay Bar 10. Yuri McKenna – Copthorne Hotel & Resort Solway park, Wairarapa 21. Missy edwards – Rimutaka Sports Bar 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 The future presents challenges and opportunities to Trust House and our people. We must learn how to beat our competitors, how to distribute our assets and resources to best operate in today’s volatile economy, and play by the rules while pursuing a competitive advantage in the age of strict compliance. Together, we will create sustainable performance for Trust House through a culture of innovation, open communication, collaboration and planning. And when decisions need to be made, we will reflect on the guiding principles behind our core purpose, our vision, values and strategic intent. We welcome change in the coming year that will lay the foundations for our future. Allan Pollard Chief Executive people, customer focus and performance deliver our purpose By focusing on our customer we will set ourselves apart from competitors. Meeting customer wants and needs will undoubtedly improve our performance and, importantly, create a culture where people matter. As a community-owned organisation, we embrace this culture; it shapes our relationships with those within and outside our business. It is key to our success. TrusT House LimiTed 3 trust House limited – Director’s Report d i r e c T o r s r e p o r T direc Tors oF the companY and remuner aTion principaL ac TiviTies The Directors, and the remuneration paid to them for the Trust House Limited is a community enterprise that owns and year ended 31 March 2013 were: operates the business units of the Masterton and Flaxmere Licensing Trusts. Management services are provided to $ the Rimutaka Licensing Trust, the Tararua Foundation and B J Bourke (Chairman) Appointed 1989 35,000 associated Charitable Trusts. Trust House’s shareholding D B Henry (Chair, Audit comprises: Appointed 2005 25,000 Committee) Masterton Licensing Trust 75.2% S D Blakemore Appointed 2002 19,000 Flaxmere Licensing Trust 3.2% M C Cooper Appointed 2011 19,000 Flaxmere Licensing (Charitable) Trust 1.4% Masterton Licensing (Charitable) Trust 20.2% J W Kershaw Appointed 2007 22,000 The Group owns and operates 21 business units including: D J Baskerville Appointed 2011 19,000 Licenced premises – hotels, restaurants, bars, cafes and Total 139,000 bottle stores. Supermarkets. REL aTIONSHIP WiTH sHAREHoLDERS A Housing estate with 513 homes to rent. There is an agreement with the shareholders that: A hydro electricity scheme (Tararua Foundation). Business plans will be presented in March each year for RESULTs FOR THe YEAR the financial year beginning 1 April. The difficult trading conditions of the past two to three years Reports on key events and trading compared to business plan targets will be presented quarterly. intensified during the year, particularly in our rural areas. Cash flows and profits (as detailed in the following table) Annual accounts will be presented in July. were sound and the financial position remains strong. Consultation will be undertaken during the annual appointment of two Directors. Table 1: cash flows generated Discussion will occur on all major transactions and, Year $ where necessary, shareholder approval received. 2013 3.778m* There are strong and close links between the various Trusts 2012 4.965m and Trust House Limited. 2011 4.621m 2010 5.855m AUDITORS 2009 5.547m The Office of the Controller and Auditor-General has 2008 5.307m appointed Audit New Zealand to conduct the audit of Trust House Limited and its associated licensing and charitable *cash flow impacted with the sale of five business units. trusts. Audit fees paid to Audit New Zealand for the year cHARITaBLe DISTRIBuTION ended 31 March 2013 were $85,078 for Trust House Group. The charitable distribution for the year was $2.816m (2012 AUDIT COMMITTEE $2.754m) and ahead of last year but again followed the The members of the committee are DB Henry (Chairman), traditional procedures: local elected representatives call BJ Bourke and J W Kershaw. The Committee met six times for, or initiate, donations or projects in their areas, and then during the year. make the initial decisions on the extent of the grant. These recommendations are then approved, or not, by the Trust USE oF COMPANY INFORMATION Trus House Foundation. All the Licensing Trusts have established The Board received no notice during the year from Directors T priorities for their communities and there is a high degree of requesting to use Company information received in their House Limi openness, accountability and consultation. capacity as Directors which would not have otherwise been The various reports in this document record the distribution available to them. made to each community. T ed – d irector’s r eport 4 sHARE DEALING No Director acquired or disposed of any interest in shares in the Company during the year. INTEREST IN Tr ansac TIONS No Director is interested in any transaction (as defined by Section 139 of the Companies Act 1993) or proposed transaction with the Company. NEW cHIEF eXECUTIVE Long time Chief Executive Bernard Teahan retired at the end of March 2013. All board members wish to acknowledge and thank Bernard for the contribution he has made over the years. CONCLUSION It has been a difficult trading year with tough economic times, rising operational costs and increased market competition all contributing factors. It is however pleasing to note the increase in charitable distributions for the year and the benefits that this delivers back to our communities of interest. Brian J Bourke CHAIRMAN For the Directors of Trust House Limited Trus T House Limi T ed – d irector’s r eport 5 trust House limited – Operational Review o p e r a T i o n a L r e v i e W saLes In line with the majority of hospitality and retail segments Trends over the last 10 years. both regionally and nationally, increased competition, Group sales tight economic times and climbing operational costs have 60.0 all impacted sales and profit. With market forces changing 50.0 so dramatically it is appropriate that we reflect on current operational practices. We have reviewed both outlet and 40.0 business segments for their continued viability and made 30.0 some tough decisions to exit a number of business units. $ Millions 20.0 This year highlighted the need to redevelop our strategic 10.0 intent and planning. Whilst performance must improve 0.0 current profitability has instilled the desire to implement 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 change. We commenced and will continue throughout the new financial year to implement initiatives that will grow profitability and deliver increased benefits back to our Sales in 2013 have been impacted by a reduction in outlets communities of interest. and current market forces. outleTs oper aTionaL revieW conTinued We exited the following outlets throughout the year: proFiTs and r aTios Newtown Sports bar and Liquorland. A reduction in sales as well as an increase in operational Liquor Plus Carterton.
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