Page 9 - NZPM Annual Report 2017

NZPM is a strong business equipped to

meet the challenges and opportunities
of the marketplace and serve its
customers and co-operative members.

The resurgence of our business is evident in NZPM’s continued
growth in revenue and earnings:

• Consolidated revenue increased by 9% to $200.5 million;

• Profit before financing costs, dividends, rebate dividends and
taxation increased by $5.5 million to $7.2 million (the prior year
earnings of $1.7 million include an additional amortisation for
the outgoing computer systems of $2.4 million);

• Operating cash inflow of $7.4 million increased by $2.5 million
over the prior year; and

• 70 new ordinary shareholders joined the co-operative over
the year.

The successful implementation of the new computer system
within Plumbing World was an important enabler to the business’s
renewal. This, together with the implementation of the business
improvement initiatives that were outlined in 2015 and 2016
have been further aided by a stronger market to reinvigorate the
operational performance and financial results. The renaissance is
thanks to a lot of hard working pragmatic people who continue
to believe that your co-operative can further improve from its
current position.

Our most enduring accolade from 2017 is the support from our
existing, returning and new customers who have trusted us to
partner them. In return, NZPM is now reinvesting in Plumbing
World and Metrix to further improve our capability and service to
customers and deliver value to our shareholder members.

OPERATIONAL REVIEW
Improving market demand played a key role in growing revenue
over the prior comparative period. Headline revenue growth of
John DeBernardo, $17.1 million was achieved through growth with both existing and
Chair of the Board
new customers.

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