Ngai Tahu posts lower annual profit of $2 million

Te Runanga o Ngai Tahu posted a net profit of $2 million for the year ended June, down on last year's $5.3 million surplus.

Tribal equity increased over the past year by $3 million to $272.8 million, while total assets of $372 million were effectively unchanged from the previous year.

"The results of the past financial year are in line with our expectations, although there is always the desire to perform better and we continue to strive to ensure that this occurs," Mark Solomon Kaiwhakahaere of Te Runanga o Ngai Tahu said in a statement today.

"Obviously the better we perform financially, the more resources we are able to invest in the delivery of social and cultural programmes through Ngai Tahu Development.

"Over the past financial year $10.7 million was spent on the provision of tribal programmes and runanga development. This is consistent with previous years' spending," Mr Solomon said.

Tribal equity increased as a result of the surplus, a $900,000 increase in the asset revaluation reserve, and a $100,000 increase in other reserves.

The overall increase in the asset revaluation reserve was achieved despite a downturn in share investments.

Ngai Tahu Holdings Corporation (NTHC), which manages the tribe's commercial activities, produced a pre-distribution surplus of $19.5 million, exceeding budget by $700,000.

Total revenue rose by 8.4 per cent to $114.6 million, and cash flow from operating activities was $6.8 million.

During the year, Te Runanga o Ngai Tahu adopted a 25-year strategy, in which the tribe's commercial arm developed a plan to create long-term sustainable growth based on four industry sectors -- property, seafood, tourism and equities.

The corporation reinvested $5.2 million profit in the financial year under review.

Ngai Tahu is currently awaiting the outcome of a 70c per share takeover offer for adventure tourism company Shotover, of which it is an 82 per cent stakeholder.

Ngai Tahu Development distributed more than $238,000 in education grants and scholarships to Ngai Tahu during the year. It also launched Kaihiku Project in 2001/02, to channel resources directly towards runanga.

Ngai Tahu has also committed to a survey to obtain information about whanau needs and ambitions. Ngai Tahu Development aimed to have 1000 Ngai Tahu homes speaking Maori by 2025.

- NZPA