Tuwharetoa posts net profit of $11.2 million

Tuwharetoa Settlement Trust has reported a net profit of $11.2 million.

Tuwharetoa Settlement Trust (TST) has reported a net profit of $11.2 million, after tax, for the 2014/15 financial year - an increase of $10 million on the previous year.

The strong financial position will see it be able to reinstate the Ngati Tuwharetoa Marae Grants Scheme, where each marae will receive an annuity - a key goal.

The trust has also grown its asset value to $91.8 million, up from $64.1 million in the 2012/13 financial year. This represents an increase in value of $27.7 million in just three years.

TST chairman Rakeipoho Taiaroa announced the result to iwi members at the annual general meeting in Taupo over the weekend.

The trust was now at its strongest asset and cash flow position since it held its first meeting in January 2013, as the newly elected trust.

"The trust is proud to have delivered this result. The past year has seen significant financial growth for TST, which is satisfying but it has also enabled major cultural and social achievements for our iwi."

The financial position of the trust continues to strengthen with total equity (excluding minority interests) now at $26.8 million, compared with $15.7 million last year.

Mr Taiaroa said the strong performance was driven primarily by two major one-off transactions and a positive revaluation of TST's investment in the Kakano Investment Limited Partnership, which delivered a $3.8 million increase.

Collaboration with other Ngati Tuwharetoa entities was a key driver in the growth. During the year, TST, and five other Tuwharetoa entities, worked together to establish Hautu Rangipo Whenua Limited. This allowed for the sale and purchase of 8500 hectares of land in the central North Island from the Crown. The land included around 4000 hectares of timber plantations and overall was valued at approximately $50 million.

"We were pleased to have played a part in bringing together these Ngati Tuwharetoa entities to make this purchase."

Highlights of 2014/15:

* $3.5m - receipt of TST's share of the remaining balance of the Central North Island (CNI) Crown Cap, which was held back from the 2009 distribution for settlement of non CNI iwi claims on Kaingaroa.

* $3.6m - profit made on the purchase of the Rangipo Forest from the Department of Corrections and subsequent on-sale to New Forests, an Australian forestry investment fund.

* $3.8m - increase in the value of TST's investment in the Kakano Investment Limited Partnership, comprised of six CNI iwi owning a 2.5 per cent share in Kaingaroa Timberlands.