Northland Inc Ltd Statement of Intent 2017/2018 KPI Results as at 31 December 2017:

Transcription

1 Northland Inc Ltd Statement of Intent 2017/2018 KPI Results as at 31 December 2017: Growth in Northland businesses engaged with Northland Inc measured through an increase in: Aggregate turnover by 5% per annum: 1. KPI: Aggregate turnover by 5% per annum Result: 25% of RBP Ac ve companies are research ac ve: 2. KPI: 25% of RBP Ac ve companies are research ac ve Result: 33.7% of RBP Ac ve companies are research ac ve The Orchard achieves 30% occupancy rate: The Orchard operated at 62.83% occupancy for Quarter 2 (October December 2017) Generic Investment proposals: Development of 2 investment ready proposals: Progress made with the two significant poten al infrastructure investments in the pipeline. Pre feasibility work occurring for one opportunity and landing pad/investor a rac on ac vity undertaken for the other opportunity. Northland Inc Board recommenda ons made to the NRC Investment and Growth Reserve: 1 project for debt or equity funding per annum: We an cipate a debt deal being presented to the board in the third quarter. 1 project for impact investment funding per annum: Completed: Northland Inc Board recommenda on made in November to support the following impact investment project: Stage 2+ Demand Assessment for Water Storage Opportuni es. Council approved the project for impact investment funding in December.

2 Promo on of Maori economic development measured by: 2 new projects partnering with Maori on economic development funded and underway: Te Runanga Nui o Te Aupouri An offer to the Post Se lement Governance En ty for Te Aupouri, Te Runanga Nui o Te Aupouri, for a study of commercial tourism opportuni es in the region at an es mated cost of $45000 was declined. Part of the reason for declining the offer was that the ini al dra was considered to be too broad, and the Trustees considered that the dra needed to be more specific. A re dra is underway. The other ac vity that the Runanga CEO considered at the me was an applica on for assistance with Hor cultural development that was me limited due to applica ons from Avocado producers for access to aquifers. This applica on was made to the Ministry for Primary Industries. Te Rawhi 3B2 The Trustees are con nuing to work on their proposal for a Great Walks type of ac vity on the Rawhi peninsula. Northland Inc has provided funding for this opportunity. The subsequent report es mates that the best part of a million dollars is required to improve the track for increased access, suitable peripheral infrastructure and reduc on of climbing by some re rou ng of the exis ng trails. The total proposal will include the Russell State Forest and the hapu of Nga Manu of Karetu and Te Kapotai from Waikare. Rewarewa D Northland Inc, TPK and MPI met with the Trustees. The Trustees are seeking assistance with securing funds/resources to do the following; i) mapping of their land, ii) to provide replan ng of pine trees iii) create a water storage facility iv) establish a second access way 30 ac ve Maori Businesses in CRM: 34 Ac ve Businesses iden fy as Maori for the 6 months to 31 December Promo on of the region measured by: Partner investment of $300K per annum in regional promo on ac vity: Industry Investment Northland Tourism Marketing Products Publication Last year (FINAL) This year (to date) Target Delivery % of target Comment Northland and BOI Visitor Guide NorthlandNZ.com Paid Listings $99,030 $106,505 Exceeded Target November % Sales exceeded expectations Completed Q2 $24,728 $24,500 $ 24, Completed Q1

3 Chinese Product Introduction $11,250 $1,000 $11,500 March Rate card not yet in market some pre-sales. Northland Trade Directory Listings $39,714 0 TBA March Awaiting brief. In 2017 changing from publication style to online listings. Total $174,722 $132,005 An Equivalent Adver sing Value of $15M per annum is achieved from des na on marke ng and media coverage: The published Q2 EAV results to date for Interna onal Marke ng Programme famils is $10,293, % increase in traffic on our social media channels: 30 Jun Dec 2017 % growth Total Facebook 10,548 10,950 4% Total Instagram % Total Twitter 4,283 4, % Total U Tube 1,389 2, % Website traffic growth exceed growth in visitor spend by 10%: Visitor spend figures are not yet available for the quarter but the indica ve growth rate to August was 10%. NORTHLANDNZ.COM Visitor Sessions % change Quarter 1 27,646 41,985 43,979 48,316 61, % Quarter 2 42,588 63,375 54,398 62,516 61, % Quarter 3 49,376 67,949 62,733 66,691 Quarter 4 38,990 54,478 46,500 97,014 TOTAL 158, , , ,537 In quarter one the website re build was started the new site architecture is nearing comple on.

4 Implementa on of the Ac on Plan measured by Total value of investment in Ac on Plan projects: (cumula ve): Investment I & GR Contribution from outside the region Total Project Value Combined Economic Impact Combined FTE's $5,488,500 *$81,430,125 $102,887,125 $65,736, *includes Digital UFB1 and UFB2 investment. Note: $500m Hawaiki cable project has not been included in the figures Project, ac ons, milestones successfully completed: Mee ngs completed with the Rural Connec vity Group and Minister Curran. Online improvements Whangarei to Te Hana Round 1 public feedback completed and shortlis ng of safety solu ons underway. TCD Route Construc on begun on Matakohe and Taipa bridge projects Funding proposals completed and approved by Senior Regional Officials awai ng Ministerial approval for Hihiaua Cultural Centre Stage One, Manea Footprints of Kupe, pilot project exploring poten al commercialisa on of Totara and skills and educa on ini a ves via He Poutama Rangatahi (NEETS) programme in forestry, hor culture and civil construc on. LIDAR survey of check sites 15%. Te Hiku Red Meat Strategy Project Manager appointed and Phase 2 underway. Iwi have agreed to progress to the next stage for forming a Miere Co op. Hundertwasser Wairau Maori Arts Centre Coordina on Group established WDC, Whangarei Art Museum Trust, Prosper Northland Trust, Griffiths & Associated and Northland Inc. Regional Walking and Cycling Business Case and Feasibility funded $20k from NRC s Investment and Growth Fund Dargaville to Donnellys Crossing Cycleway Feasibility and Economic Impact Report funded $25k from NRC s Investment and Growth Fund Hihiaua Cultural Centre approved $675k from Founda on North for Stage One Northland Water Management Demand Study funded $100K from NRC s Investment and Growth Fund Hawaiki Cable project the cable has recently been landed in Sydney and the project is on track for comple on in June Membership of the Trust to govern and manage the Te Pou Herenga Cycle Trail was established. Extension 350 Year 2 four clusters being established with farm consultants appointed, 90% of mentor farmers and over half of target farms in place. The Interna onal Educa on Strategy was approved and included in the Ac on Plan. Comple on of the Bay of Island Vintage Railway (BOIVR) was approved and included in the Ac on Plan. Te Waiariki Ngawha Springs redevelopment was approved and included in the Ac on Plan. Tuia Encounters 250 Legacy Projects and Event Programme was approved and included in the Ac on Plan.

5 Corporate Services Informa on for Shareholders: Statement of Performance, Posi on and Cash flow as at the half year balance date, financial forecasts for the full year and comparison to approved budgets Management reports to 31 December 2017 Profit and Loss Budget Performance inclusive of Forecast Year End 2018 Highlights of financials (Profit & Loss): Revenue YTD is below budget (YTD $20739) due to ming (NRC feasibility income expected earlier) and reduced expected opera onal income budgeted from NRC. The forecast makes allowances for unsecured Council funding (FNDC $55,000& KDC $10,000) offset by increase in revenue from project areas like ECentre, (FCAST ($25,228). Expenses YTD are under budget (YTD $62,190) due mainly to ming (wages)& forecast is also under budget due to higher opera onal costs offset by Council (as stated above unsecured expenses to match income) FCAST ($18,100). Conclusion Actual YTD Revenue and expenses are tracking under budget mainly due to ming. Forecast the budget was set to break even, so any drop in income or under budgeted expense has an impact on the bo om line. We have felt pressure from the first full year of running the Orchard and as it proves even more popular further work is being done on the right financial model to sustain its growth. New funding streams for early stage businesses and interna onal students will help to ease the bo om line but careful monitoring of opera onal expenses is needed in the last six months of the financial year to help hit a small surplus/deficit. Dec 17 YTD Actuals YTD Budget Variance Year End Forecast Est Annual Budget Variance Income NRC Income 1,006,033 1,018,686-12,653 2,282,621 2,287,926-5,305 NIF Income 65,000 64,000 1,000 65,000 64,000 1,000 Project & Council Income 447, ,476-9, ,014 1,005,937-20,923 Total Income 1,518,422 1,539,162-20,739 3,332,635 3,357,863-25,228 Expe ns e Depreciation 23,793 20,498-3,295 49,000 41,000-8,000 Wages 674, ,542 87,706 1,438,088 1,416,134-21,954 Overheads 209, ,405-23, , ,175-17,446 Director Expenses 40,127 40, ,960 81, Project Direct Costs 360, , ,376,335 1,441,335 65,000 Total Expense 1,308,878 1,371,068 62,190 3,339,004 3,357,104 18,100 Net Ordinary Income 209, ,094 41,450-6, ,128 Total Other Income 358, , , ,271 Total Other Expenses 354, , , ,715 1,923 Net Income 214, ,659 41, ,315-5,205

6 as at 31 Dec, 17 Closing Balance Jun 30,17 Movement notes ASSETS Total Current Assets 1,222,468 1,038, ,743 Total Fixed Assets 216, ,530 9,241 TOTAL ASSETS 1,439,239 1,246, ,984 LIABILITIES & EQUITY Accounts Payable 213, ,602 58,018 Other Current Liabilities 898, ,676-79,143 Total Liabilities 1,112,152 1,133,278-21,126 Equity Contributed Capital Prior Year Adjustment 17,876 17,876 0 Equity 95,001 94, Net Income 214, ,866 Total Equity 327, , ,109 TOTAL LIABILITIES & EQUITY 1,439,238 1,246, ,983