Page 11 - NZPM Annual Report 2017

The launch of the new brand includes an GROUP STATEMENT OF FINANCIAL
implementation programme to promote the new POSITION
name and ultimately expand our wider market
share of exclusive products. NZPM has rebuilt the strength of its capital base
through careful management of working capital
LeVivi will replace the Astivita brand which we and prudent capital investment decisions.
have used under license. The approach provides for future flexibility for
reinvestment and rebuilds the resilience that is
necessary to manage the co-operative through
REINVESTMENT IN THE BUSINESS market cycles.

Having overcome our technology challenges and The excellent trade debtors collections are a
improved our operating earnings, NZPM has been reflection of the overall strength in the customer
able to increase reinvestment in the Plumbing base, the accuracy of our systems and process
World branch network. and the attitude of the management team to
work with customers. Equally, those attributes
Maintenance and capital upgrades have been allowed inventory to remain relatively static at a
accelerated across the network with an emphasis time when sales volumes increased by 9%.
on updating and upgrading showrooms, trade
areas, forklifts and the delivery truck fleet. A During the year, NZPM was able to use its
significant upgrade was undertaken in Nelson improved capital base to return excess funds
with similar upgrades planned for Blenheim, to shareholders. The redemption of the
Rotorua, Palmerston North and Mt Wellington Development Shares ($0.7 million), Rebate 2014
during 2018. Shares ($0.6 million) and the Rebate 2015 Shares
($1.1 million) were all voluntary redemptions by
In March, the East Tamaki branch was moved the company which were made possible from
from being co-located with the bulk storage strong operating cash flows and continued
Distribution Centre to stand alone premises. The support for new investment in Redeemable
move will allow the branch to better service Preference Shares.
the East Auckland region with a larger footprint
while releasing space in the Distribution Centre In March, NZPM extended its $15 million bank
to accommodate growth in the own brand and facility with Westpac by a further one year to
exclusive imported products programme. December 2019.

The new Hornby branch was opened in early May
2017 to complement our strong market position in HEALTH AND SAFETY
the wider Canterbury region.
NZPM continues to reinforce the philosophy that
everyone has the fundamental right to go home
We have entered a contract to lease a
new purpose built branch in Invercargill in at least the same condition as they arrived to
with an expected possession date of early work in.
2018. Negotiations for a replacement site in
Queenstown and a new site in West Auckland This philosophy has resulted in a significant
are continuing. reduction in the number and severity of accidents
in the business, including an 80% reduction in the
number of Lost Time Injury days over the past five

9