Good Year for GHL
It has been a good year for Gisborne Holdings Limited with a $2.548 million distribution to shareholder Gisborne District Council.
GHL chairman Bob Proudfoot says the company has continued to grow and perform well across the board for the 2016/2017 financial year.
“We now have attained a core asset base approaching $100 million while continuing to increase our annual distribution to GDC,” says Mr Proudfoot. “This year’s distribution was $1.298 million more than required under the company’s statement of intent.”
The return on shareholder’s funds is 16.78% for the year.
Mr Proudfoot said the transfer of the Waikanae Beach TOP 10 Holiday Park and Gisborne Vehicle Testing from GDC to GHL, meant the company could now rightfully assume the mantle as the commercial arm of council.
“Our new entities are settling in well and promise to continue to provide solid contributions to achieving our increasing distributions to GDC.”
There have been a number of operational highlights in the 2016/2017 financial year including Gisborne Vehicle Testing, Property Holdings and the Holiday Park all exceeding their forecast revenue – the latter by 22%.
Tauwhareparae Farms produced a number of improvements over the year – income for the farms were up on budget by 38%.
There is much underway in the current year, including the $12.5 million dollar rebuild of the Fitzherbert Street administration centre, as well as an $8 million revamp of the Holiday Park.
“These are forecast to further grow the asset base of GHL while delivering fit-for-purpose industry-specific infrastructure for our community,” says Mr Proudfoot.
There are also changes afoot around the administrative structure of GHL.
“The company’s annual report recognises the excellent contribution from a hard-working team of people whose aim is to continue to improve returns to its shareholder for the benefit of the community.”
GHL is fully owned by GDC.
“All our distributions flow directly to GDC to help provide for capital works and subsidise our fellow ratepayer’s rates’ demands,” said Mr Proudfoot.