Tag Archives: Warren Larsen

DCHL financial result

NO-ONE BELIEVES TERRY DAVIES ON DVML RESULT AND FORECAST (when DVL debt is deliberately not mentioned)

Terry Davies (1) 194022

Dunedin City Council – Media Release
DCHL Annual Result for the year ended 30 June 2014

This item was published on 30 Sep 2014

The Board of Dunedin City Holdings Limited (DCHL) is pleased to report the financial result for the DCHL group for the year ending 30 June 2014.

Highlights
● Profit after tax for the group was $12.5m.
● We have distributed to the Dunedin City Council (DCC) and its subsidiaries outside the DCHL group a total of $15.7m. This has fully met budget expectations and been achieved within the policy of not borrowing to pay dividends.
● Cash from operations remains strong at $30.1m. This was after paying the budgeted subvention payments of $7.9m to Dunedin Venues Limited.
● Total borrowings across the group have reduced by $4.7m to $621m.
● The financial result for the year reflects the hard work and focus of the staff and directors of the DCHL group of companies, which is much appreciated.

Profit after tax for the group was $12.5m for the year compared to $20.5m last year. This is a solid return for the year. The main difference between the 2014 and 2013 profit resulted from the 2013 year including a write up of approximately $7m in the value of the City Forests investment.

Aurora Energy Limited had a solid year, but profit was $1m less than last year due to the mild winter in 2013. Operating cashflow remained strong and was $4.1m higher than last year. 2014 also saw the company starting to increase investment in its asset base.

Delta’s profit was at a similar level to last year ($4.4m this year vs $4.6m last year). It has completed exiting its water and civil construction operations.

City Forests has had a strong year. Profit has reduced from $14.6m to $8.3m. This reduction in profit has been due to a lower write-up in value of the City Forests investment in the current year. The company paid a record dividend to Dunedin City Holdings Limited of $5.1m.

Taieri Gorge Railway experienced a small loss for the financial year of $51,000 compared to a surplus of $39,000 achieved last year. Operating cashflow remained strong at $433,000 and was also higher than last year.

Cash from operations has remained strong at $30.1m. Cashflow is the most critical measure as it is the basis for dividends and capital investment. The solid cash generation performance has also enabled the DCHL group to lower its net debt by $4.7m over the year.

Progress has continued to be made in restructuring the governance of the group. A number of directors resigned during the year and we need to thank them for their services. We need to specifically record the service of two directors who resigned this year after serving as members of the group’s board of directors for a significant number of years. Both Ray Polson and Ross Liddell resigned as directors during the year and contributed in a significant way to the development of the DCHL group in a wide range of roles. It is with sadness that I must note the passing of Ross in July of this year.

Given the normal operational challenges facing the members of the group the board of DCHL remain positive on the outlook for the group of companies.

Contact Graham Crombie, DCHL Chair on 0274 363 882.

DCC Link

### ODT Online Tue, 30 Sep 2014
‘Solid’ results from DCC companies
By Chris Morris
The Dunedin City Holdings Ltd group of companies have delivered “solid” results, despite an $8 million drop in profits and another loss for the entity running Forsyth Barr Stadium, chairman Graham Crombie says.
Read more

Posted by Elizabeth Kerr

*Image: Ch39 30.9.14 [screenshot tweaked by whatifdunedin] – Terry Davies

64 Comments

Filed under Business, DCC, DCHL, Delta, DVL, DVML, Economics, Media, Name, New Zealand, People, Politics, Project management, Property, Stadiums, What stadium

QB 2014 gongs of ill-repute #Hudson COI = MNZM

(via ODT) Mon, 2 Jun 2014
Southern Queen’s Birthday Awards recipients

paul-hudson copyPaul Hudson
Dunedin
Services to business and the community

Paul Hudson (65), of Port Chalmers, said that he was “humbled and honoured” for the recognition of his involved with commerce, local government and the community in Dunedin for 50 years.
He worked for Cadbury Fry Hudson between 1973 and 1996 and, as managing director, led Cadbury’s transition to conducting its worldwide business from centralised locations.
He held elected positions on Port Chalmers and Dunedin City Councils between 1980 and 2013, including deputy mayor on both councils.
He was chairman of Dunedin City Holdings, Citibus-Dunedin Transport Ltd and Citiworks, and a board member of City Forests, Aurora Energy and Delta Utility Services.
He was chairman of Dunedin City Holdings for 18 years, when shareholder funds increased from $100,000 to more than $150 million and distributions to Dunedin City Council totalled more than $280 million.
He was council appointee for the Otago Theatre Trust, Dunedin Public Art Gallery Society and its acquisitions committee and the Dunedin Town Hall Organ Trust.
He was appointed treasurer to the Otago branch of the Save the Children Fund 50 years ago. “This was the beginning of my lifelong interest in serving the community.”
The service to the community included work for Port Chalmers Kindergarten, the Aramoana Trust, Regent Theatre, the Otago Arts Society, the Dunedin Council of Social Services and the Dunedin Community House Trust. “My involvement with the establishment of Community House, my early years in Save the Children Fund and various roles and involvement in local government have been very satisfying,” he said.

[ends]

DECLARATION
“I, Paul Richard Hudson, do solemnly declare I did not squander ratepayers’ money for the chance to receive specific mention in the freshly minted report of the Office of the Auditor-General’s investigation into Delta (2014). Nor at any time did I place or declare my Conflicts of Interest ahead of my ability to be judge and jury at DCHL and other council-owned companies, so to infuriate Warren Larsen (Report, 2012). I did not personally receive ANYTHING by way of payment for termination of lease of restaurant space in the Municipal Chambers. And, I am not at all obsequious, a fence-sitter — or, make that slimy.” … “Honest.”

Related Posts and Comments:
8.11.13 DCHL, long wait for review (Larsen sighs)
23.8.13 New DCHL Chair announced: Graham Crombie
24.7.13 DCC / DCHL shake up !!!
12.7.13 Hudson, DCC (ex DCHL)
7.7.13 DCHL changes lack transparency —where’s the report, Shale?
30.10.12 DCHL ‘run by a bunch of fools’ -agreed
26.10.12 DCHL borrowed $23 million to bail DCC
26.10.12 DCHL: New directors for Aurora, Delta, City Forests
17.10.12 DCC on DCHL, subsidiaries and DCTL
12.10.12 DCHL, subsidiaries and DCTL
30.8.12 Dunedin City Council seen by Fairfax Business Bureau deputy editor Tim Hunter
7.8.12 DCC, DCHL, debt, democracy (and professional rugby)
20.12.11 Delta and the GOBs #DCHL #DCC
28.10.11 DVML, DVL and DCHL annual reports
16.9.11 DCHL and subsidiaries: shuffling, no real clean out?
13.8.11 Ridding DCHL of conflicts of interest, Otago business monopoly ‘by director’, and other ghouls
9.2.11 DCC and DCHL, was there ever any doubt?
7.10.10 The time has come for biffing out
7.7.10 DCC, DCHL, CST, DVML, DVL?
22.10.09 DCHL chief executive replies to critics

Posted by Elizabeth Kerr

33 Comments

Filed under Business, DCC, DCHL, DCTL, Delta, DVL, DVML, Economics, Hot air, Media, Name, New Zealand, ORFU, People, Politics, Project management, Property, Site, Sport, Stadiums, What stadium

New DCHL Chair announced: Graham Crombie

Graham Crombie, DCHL### ODT Online Fri, 23 Aug 2013
New DCHL chairman named
Graham Crombie has been appointed as the new Chair of Dunedin City Holdings Limited. Mr Crombie, of Dunedin, is a professional director and chartered accountant. He was appointed as a director to the DCHL Board in July last year. Mr Crombie replaces retiring Chair Denham Shale, who will remain on the Board until later this year. DCHL is the parent company for Council-owned companies. In announcing the appointment, Mayor of Dunedin Dave Cull thanked Mr Shale for his considerable contribution during a period of review and change for DCHL. Mr Cull welcomed Mr Crombie to the role, saying, “Mr Crombie will bring his expertise and experience to bear, building on the work of Mr Shale in refocusing Council-owned companies for the future.”
ODT Link

DCC Media Release

More to come . . .

Warren Larsen Report (PDF, 3.9 MB)
Governance review of all companies in which Dunedin City Council and/or Dunedin City Holdings Limited has an equity interest of 50% or more.

Related Posts and Comments:
24.7.13 DCC / DCHL shake up !!!
12.7.13 Hudson, DCC (ex DCHL)
7.7.13 DCHL changes lack transparency —where’s the report, Shale?
30.10.12 DCHL ‘run by a bunch of fools’ -agreed
13.8.11 Ridding DCHL of conflicts of interest…

For more, enter *dchl* or *dcc* in the search box at right.

Posted by Elizabeth Kerr

*Image: odt.co.nz – Graham Crombie

9 Comments

Filed under Business, DCC, DCHL, Economics, Hot air, Media, Name, New Zealand, People, Politics, Project management, Stadiums, What stadium

DCHL ‘run by a bunch of fools’ -agreed

Comment received.

JimmyJones
Submitted on 2012/10/30 at 5:43 pm

DCHL is financially very sick: if it was a horse, you would have to shoot it to put it out of its misery. It is amusing to see how sensitive Dave Cull is to Lee Vandervis stating-the-bloody-obvious, that DCHL doesn’t make enough real money to pay its interest and dividends to the DCC, as well as the subsidies to DVL and DVML.
The DCC are forcing DCHL into more and more debt every year. For the 5 years that I have Annual Reports, DCHL has always paid for its distributions to the DCC by increasing their debt. Not just part of the distributions are borrowed money, but the whole amount each year.
In 2012 they added $50.3 million to their debt (page 37), so you can see that even without being forced to provide distributions of $23.2 million, it already had a severe cash-flow shortage. This negative cash-flow is the result of their own incompetence from spending very large amounts on new investments and expanding their operations. The incompetence comes from the fact that there has been no expansion in profits as a result of this low quality spending. They seem to be followers of the Homer Principle (if something doesn’t work, keep doing it), because not once in the last five years have they earned enough cash to pay for their spending on new stuff. Poor-old Dave and the new-guy, Paul, don’t seem to understand the problem. Let me summarize –

● DCHL is heading towards bankruptcy
● It is going bankrupt because DCC councillors and staff have been using it like a magic money-box where distributions are paid from debt (debt that doesn’t show up on DCC books – because of their choice)
● The LTP shows that they fully intend to continue this foolish practice, despite the DCHL Chairman’s aspirational comments to the contrary and Mayor Cull foaming at the mouth about it
● DCHL has been, and mostly still is, being run by a bunch of fools that need to be kept well away from anything financial or owned by the People Of Dunedin.

### ODT Online Tue, 30 Oct 2012
Mayor sees red over Vandervis questions
By Chris Morris
Sparks flew as Mayor Dave Cull and Cr Lee Vandervis clashed repeatedly over debt and dividends at yesterday’s Dunedin City Council meeting. In what at times resembled a running battle, an angry Mr Cull eventually accused Cr Vandervis of giving in to his “obsession” and threatened to prevent him from speaking. The pair found themselves at loggerheads over reports detailing Dunedin City Holdings Ltd’s latest financial results and the council’s annual report.[…]Cr Vandervis attacked the figures at yesterday’s meeting, claiming the entire $23.2 million – which helped keep council rates increases to a minimum – had been funded from loans.
Read more

Related Posts and Comments:
29.10.12 DCC consolidated debt substantially more than $616m…
26.10.12 DCHL borrowed $23 million to bail DCC
26.10.12 DCHL: New directors for Aurora, Delta, City Forests
25.10.12 Dunedin Venues Limited – 2012 Annual Report now 2 months overdue
17.10.12 The only thing up…. (for sale)
17.10.12 DCC on DCHL, subsidiaries and DCTL
12.10.12 DCHL, subsidiaries and DCTL
28.9.12 The End of The Golden Weather?
25.9.12 Cull’s state of denial…
24.9.12 DCC against imposition of local government reforms
11.9.12 Delta Utility Services Ltd
6.9.12 DCC pays out $millions to cover loss making stadium…
30.8.12 DCC seen by Fairfax Business Bureau deputy editor Tim Hunter
7.8.12 DCC, DCHL, debt, democracy (and professional rugby)
26.7.12 Cull’s council thinks $750,000 per annum to DVML…

Posted by Elizabeth Kerr

33 Comments

Filed under Stadiums

DCHL borrowed $23 million to bail DCC

Why are the Otago Daily Times (Allied Press) and DScene (Fairfax) refusing to print the truth about Dunedin City Holdings accounts?

The $23 million that DCHL reportedly PAID as dividend etc to Dunedin City Council, is borrowed.

DCHL borrowed $23 million to bail the spendthrift DCC and make it look like we have a 5% rates increase instead of the real 25% increase without the new borrowing.

You’ll find all the details here:

DCHL Annual Report 2012 (PDF, 2.1 MB)

The ‘debt-deniers’ from DCHL are trying to characterise this year’s disastrous council-owned companies annual accounts as one of ‘ups and downs’.
ODT 18.10.12

The DCHL annual report actually shows:

● Delta business goodwill – Down
● Jacks Point/Luggate property values – Way Down
● City Forests carbon credits, log returns and valuations – All Down
● City Forests Milburn Wood Processing Mill – Down
● DCHL cashflow – Down
● DCHL profit – Down and Out and Negative: minus $5 million
● The only significant ‘Up’ is more DCHL borrowing

Repeat:
What DCHL has delivered is another $23 million of debt which they have had to borrow against company assets because the council has already spent it.

The claim that DCHL’s borrowing to supply dividends will stop from next year is a claim with onerous consequences.

– The council’s gross spending continues unabated.
– Together, DCC and DCHL have racked up all possible debt.

Without serious moves to slash staff and shrink the number of company directors, the only option that remains is Asset Sales.

———————————————

A note on two DCHL subsidiaries

The directors of Delta Utility Services Ltd and Delta Investments Ltd are guilty of having made the decision(s) to speculate on property at Queenstown’s Jacks Point and Luggate, using ratepayer funds. No other conclusion is able to be drawn, they are all responsible. They are all liable.

The value of the properties has been written down by millions of dollars, a loss to the ratepayers who were unaware of the purchases until the deals were concluded.

This is not simply a matter of loss of ‘book value’.

The directors of the two companies had real and perceived conflicts of interest in conducting the property deals. They continue as directors with clear conflicts of interest.

The directors should be SACKED. Meanwhile, we await news of ‘board restructuring’. [see post]

DCHL chairman Denham Shale should be SACKED for misrepresenting the facts and condoning the actions of the two boards.

Who are/were the directors responsible?

Delta Utility Services Limited
[formerly Delta Energy Limited; The Electric Company of Dunedin Limited]
Michael Owen COBURN
Norman Gilbert EVANS
Ross Douglas LIDDELL
Stuart James MCLAUCHLAN
Raymond Stuart POLSON

Delta Investments Limited – property subsidiary
[formerly Newtons Coachways (1993) Limited]
Grady CAMERON [also, Chief Executive of Delta Utility Services]
Michael Owen COBURN
Stuart James MCLAUCHLAN
Raymond Stuart POLSON

Throw out Athol Stephens, DCHL Secretary, for good measure.

Posted by Elizabeth Kerr

17 Comments

Filed under Business, DCC, DCHL, DVL, DVML, Economics, Geography, Media, Name, People, Politics, Project management, Property, Site, Sport, Stadiums

Dunedin Venues Limited – 2012 Annual Report now 2 months overdue

UPDATED POST 26.10.12 at 1:46 am

JimmyJones at ODT Online today mentioned this timing anomaly. DVL is late with its 2012 annual report. We all know how steep the numbers will be and just approximately, how decimating!

We don’t hold out any hopes for DVL.

● DVL 6-monthly result, $5.2 million loss.

● DVML (with the same board as DVL) annual result, $1.9 million loss.

● DCHL annual result, $5m loss for the group.

Dunedin City Council, the companies’ owner, persists in keeping public eyes away from the true state of the books, and the activities and wrongdoings that have led to gross mismanagement of council finances.

Fudging, obfuscation, corruption, fraudulence, lack of transparency and accountability – this is your council. Breaching its own prudential limits…

It keeps coming… (sample)
26.7.12 Cull’s council thinks $750,000pa to DVML represents good value?
30.8.12 DCC seen by Fairfax Business Bureau deputy editor Tim Hunter
11.9.12 Delta Utility Services Ltd

Denham Shale, Bill Baylis and Co have been hired to make it all go away.

Then, ah-ha! There’s our man Slippery aka Warren Larsen, who authored the report to salve DCC’s conscience and not much else.

Governance = ineptitude, manipulation and lots and lots of crime…

Posted by Elizabeth Kerr

8 Comments

Filed under Business, DCC, DCHL, DVL, DVML, Economics, Media, Name, People, Politics, Project management, Property, Site, Sport, Stadiums

The only thing up…. (for sale)

Email received.

—— Forwarded Message
From: Lee Vandervis
Date: Wed, 17 Oct 2012 19:51:39 +1300
To: Debbie Porteous , Chris Morris
Cc: EditorODT
Conversation: DCHL claim of ups and downs
Subject: DCHL claim of ups and downs

Hi Debbie and Chris,

The debt-deniers from DCHL are trying to characterise this year’s City Companies Annual Reports as one of ups and downs.
Delta business goodwill is down.
Jacks Point/Luggate property values are way down.
[City Forests] carbon credits, log returns and valuations are down.
[City Forests] Wood Processing Mill is down.
DCHL cash flow is down and profit is down and out and negative.

The only thing significantly up is DCC funding requirements for the Stadium, met by significant borrowing again this year, but with a promise that the DCHL borrowing will now stop.
Without the courage to slash and burn staff costs and biff all directors responsible for scandalously speculative Jacks Point/Luggate, Wood Processing Mill etc, the only option that remains is asset sales.
Look out City Properties, Waipori Fund, Forests etc.

Kind regards,
Lee

Posted by Elizabeth Kerr

21 Comments

Filed under Business, DCC, DCHL, DVL, DVML, Economics, Hot air, Media, Name, People, Politics, Project management, Property, Site, Sport, Stadiums