Charities gain from $2.75m trust cash

STRONG POSITION: Allan Pollard has had a good year. PHOTO/FILE

A year of clearing the decks for future increases in efficiency and profitability is how Trust House chief executive Allan Pollard describes the result for the financial year ended March 31.

The group's net profit for the year was $11 million and this mainly comprised of revaluations of the trust's housing stocks to comply with newly introduced international accounting standards.

Donations of $2.75 million were distributed through the Trust House Foundation.

"The past year has been one of consolidation, which has set the scene for future monitoring and growth. We have revalued our assets which now reflect current market values. Non-performing assets have been disposed of, and impairments have been cleared out from the books," said Mr Pollard.

"For the past 18 months or so, Trust House has been having a wide-ranging review of its operations and assets and we are now in a strong position to generate even more wealth for the community."

The year saw investment in rebranding the company's bottle stores under the Bottle-O franchise, the start of a major redevelopment of the Featherston supermarket, cafe, post shop and bottle store, and the beginning of work on the Farriers Bar and Eatery.

The Solway Four Square business was sold, the Homestead restaurant at Solway converted to a function centre and the Greytown Community Store was closed.

Mr Pollard said the focus was on businesses that delivered sustainable growth and profitability for the company leading to greater dividends to the community. "We also want to provide venues that local people enjoy and are proud to entertain their visitors at."

Trust House owns and runs 19 diverse businesses in the hospitality sector, a supermarket, a hydro-electric power scheme and a housing estate, all between Hawke's Bay and Wellington.

Surplus profits from these businesses are distributed back to Wairarapa, Flaxmere and Rimutaka communities, in support of organisations and events.

In other Trust House news the New Zealand Herald reports the organisation is again in the market for buying state houses.

Mr Pollard told the Herald the company wanted to buy 1500 houses " anywhere in the lower North Island" and was looking from New Plymouth and Hastings down to Wellington.

In 1999, Trust House bought 541 state houses in Wairarapa and Tararua for $10.5 million, keeping on the tenants in a deal Mr Pollard describes as a 50 per cent discount off market value.

The buy-up was in the dying days of Jenny Shipley's National Government and, according to Mr Pollard, the low price meant the company was able to keep rents below market rates and still keep up maintenance work on the homes.

Prime Minister John Key said last week Cabinet would consider a paper before Christmas on state house sales with buyers again expected to let existing tenants live in the homes sold.