Page 61 - NZPM Annual Report 2020

NZPM GROUP LIMITED
Notes to the Consolidated Financial Statements for the year ended 31 March 2020

30. Events after the reporting period

Increase to loan facility
NZPM increased its loan facilities with Westpac New Zealand Limited by $5 million to provide combined loan facilities of $20 million.
The increased portion of the facility was effective from 1 May 2020 and is for a period of 12 months. The increased loan facilities and
the existing $3 million overdraft facility provide additional flexibility for NZPM to manage future funding needs in an uncertain trading
environment.

Declaration of 2020 interim rebate dividend
Since year end, the directors have declared the payment of an interim gross rebate dividend, to all ordinary shareholders, that is the
greater of $300 or 4.0% per annum of their Grade A Cash. The company will consider the payment of a final dividend later in this
financial year when the effects of the COVID-19 are known. The interim rebate dividend is payable in cash to all ordinary shareholders
on the share register, at the proposed date of payment, who are not in default of their monthly obligations. The net aggregate
amount of the proposed rebate dividend payment to be paid out in September 2020 out of retained earnings as at 31 March 2020,
but not recognised as a liability at year end is approximately $4.2 million (2019: $4.7million). The imputed portion of the rebate
dividend (28%) will be imputed out of existing imputation credits.

Investment in associate
On 10 July 2020, the Group acquired a one-third equity share of Aqua Source & QC Co., Limited (Aqua Source), a company
incorporated in Hong Kong.

The company is a specialist sourcing agent for plumbing and related products manufactured in China and progressively other Asian
countries. The investment has been made to secure the long-term supply chain for Plumbing World’s own brand imported products
marketed under the LeVivi and TIVA brands.
The total consideration for the new equity issued by Aqua Source is US$465,000. 50% of the consideration was due on the acquisition
date with a further 25% due on the first anniversary of the settlement date and 25% due on the second anniversary of the settlement
date. There is no contingent consideration.

The Group anticipates that the investment will be accounted for as an associate company and will therefore apply the equity method
of accounting. We have not yet completed the fair value accounting for this acquisition.

31. Related parties

During the period the Group has not entered into any material contracts involving related parties or directors’ interests which are not
disclosed. No amounts owed by related parties have been written off or forgiven during the period.

31.1. Identity of related parties
The Group has related party relationships with its subsidiaries (see note 17), board of directors and key management personnel. The
parent entity is NZPM Group Limited (the company); this is governed by a board of 7 directors.

Key management personnel includes 3 senior executives being the General Manager of Plumbing World Ltd, the General Manager of
Metrix Imports Ltd and the Chief Financial Officer.

No key management personnel or their related parties hold positions in other entities that result in them having control or significant
influence over the financial or operating policies of these entities.

The Group is a co-operative and therefore transacts with its shareholders. No shareholder has any sufficient influence that they could
be deemed to be a risk to the Group.
Balances and transactions between the company and its subsidiaries, which are related parties, have been eliminated on
consolidation and are not disclosed in this note.

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NZPM GROUP LIMITED ANNUAL REPORT 2020