Tainui posts 33pc rise in net profit

Tainui Group Holdings (TGH) posted a 33 per cent rise in net profit for the year to March, compared to the previous year.

The group today reported a net profit of $21 million, up from $15.8 million, and an operating profit before asset realisations of $12 million, up from $9 million.

TGH will increase its dividend to its shareholder, the Waikato-Raupatu Land Trust, to $7.5 million from $5.4 million last year. The Waikato Raupatu Lands Trust represents the people of Waikato-Tainui.

Chairman John Spencer said TGH was now three years into a five year strategy to rebalance the company's asset portfolio.

He said the sale of surplus and non-performing assets was now complete and the company would now concentrate on continuing to improve its operating profit.

Chief executive Steve Murray said the year had marked the beginning of some of the company's more ambitious land development projects which include The Base, a large retail development on the northern outskirts of Hamilton in a joint venture with The Warehouse.

The first stage of the $60 million Base development is due to open in July.

TGH has also announce plans to build a new Ibis hotel on a site in central Hamilton with its partners in the Novotel, Accor Group and Hamilton City Council.

- NZPA