Page 8 - NZPM Annual Report 2020

STATEMENT OF FINANCIAL POSITION Wellness continues to be an important issue for us
all. Our priority is to help an employee who may
Our prudent approach to capital management has need support by identifying support from within their
NZPM in a strong position to manage our way through networks of friends, family or a professional such as
an expected period of uncertainty. Net debt increased our company funded third party employee assistance
by $1.4 million to fund an increase in working capital provider. A mental health wallet card which provides
and capital investment. practical advice was well received across our network
and with customers.
The new lease accounting standard (NZ IFRS 16) has
had a sizable impact on our balance sheet with the We have completed a review to understand the seismic
addition of right-of-use assets of $49 million and lease rating for each building that we occupy and have
liabilities of $51 million. The financial statements contain made good progress on working with our landlords
a full explanation of these new items which represent in an ongoing programme to upgrade the seismic
our discounted future lease commitments. performance of a range of properties that were below
our policy targets. A programme to assess and either
The excellent trading relationship that we have with
remove or have a formal management plan for
our customer base helped maintain another period
asbestos, in any building that we occupy, has now
of exceptional collections from our trade customers
been completed.
during the year. Improving processes, ongoing staff
training and a diligent team continued the trend of The co-operative is improving our holistic approach to
improving a range of our inventory metrics. sustainability. We place a high value on doing the right
thing for our environment and our communities as a
NZPM continues to have a strong relationship with whole and will continue to improve our practices and
Westpac. During the year, our lending facilities were reporting measurement in the future periods.
extended by one year to December 2021, and with
effect from 1 May 2020, we agreed to increase our loan YOUNG PLUMBERS CLUB
facilities by $5 million to provide total combined facilities
of $23 million. The increased portion of the facility is The ‘Young Plumbers Club’ is maturing into a
for a period of 12 months and was agreed to provide cornerstone value proposition of the co-operative
additional flexibility for NZPM to manage future funding to develop the next generation of plumbers who will
needs in an uncertain trading environment. become the leaders of our industry. The continued
growth in the membership base is anchored on the
LEARNING AND DEVELOPMENT fellowship that younger members of our industry gain
from the collaboration and camaraderie provided by
Continuing to invest in our people is a core principle a mix of educational and social events throughout the
and is essential to support our service reputation in Plumbing World branch network.
the market, retain our best people and ultimately grow
returns for our shareholders. The annual ‘Young Plumber of the Year’ competition
continues to be a highlight for both the company and
We believe that our approach to learning and
development across a range of disciplines and on-the- entrants with generous support from sponsors and
job coaching differentiate us from our competitors. In industry bodies. This year’s event had over 380 entrants
addition to supporting our people to carry out their who competed in local and regional qualifying events
roles more effectively, learning and development which culminated in a national final won by Andrew
is lowering our staff turnover through improved Bright from Warwick Kirwan Plumbing & Gas
employee satisfaction. We are able to complete internal in Rangiora.
promotions with a greater level of confidence as our GOVERNANCE
people are supported in their new roles.
Peter Faul and John Leen were elected to the board at
HEALTH, SAFETY AND SOCIAL RESPONSIBILITY the last annual meeting. The new directors replaced
retiring directors Alister Lawrence and Stu McIvor
Our strategy is to continue improving our well-being who both received the appreciation of the board and
and social responsibility through embedding healthy, co-operative members for their respective six and ten
safe and sustainable practices into our work culture, years’ service as directors.
so that behaviours are part of the way we work and
operate every day.

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NZPM GROUP LIMITED ANNUAL REPORT 2020