Page 56 - NZPM Annual Report 2017

NZPM GROUP ANNUAL REPORT 2017

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

For the year ended 31 March 2017

19. RELATED PARTY TRANSACTIONS

Identity of related parties
The Group has related party relationships with its subsidiaries, associates, board of directors and
executive officers.

The Group is a co-operative and therefore transacts with its shareholders. Sale of goods to shareholders
are made at market prices. The amounts outstanding at balance date are on normal trade terms and will be
settled in cash. No shareholder has any sufficient influence that they could be deemed to be a risk to
the Group.

(a) Transactions with directors
Directors Messer’s Coxhead, DeBernardo, Lawrence, McCord, McIvor and Whitehead are also directors of
companies which regularly trade with Plumbing World Limited on normal trading terms, as noted in note 14
and 20(b). In total the companies associated with the directors purchased $5,801,000 (2016: $4,789,000)
of goods during the year from Plumbing World Limited. The outstanding balance as at 31 March 2017 was
$562,000 (2016: $665,000).

Director S McIvor has an interest in a property that is leased to Plumbing World Limited in Wanaka for $85,000
per year (2016: $85,000). Director J DeBernardo has an interest in a property that is leased to Plumbing World
Limited in Christchurch for $190,000 per year. This lease commenced on 1 April 2017. Formal lease agreements
are in place for both properties and rent is based on commercial rates.

As at the date of this annual report there are no outstanding loans to directors, (2016: nil).

(b) Transactions with key management personnel

Key management personnel compensation comprised short and long-term benefits on an accrual basis for
the 12 months ended 31 March 2017 of $1,652,000 (2016: $1,283,000). The long-term benefit was offered to
three senior executives and was for a three year period ending on 31 March 2017. The long-term benefit was
based on the Group achieving certain revenue targets in the 2017 year. The aggregate amount of the long-
term incentive for the three year period was $617,000 with half the amount being paid in the 2017 year. At 31
March 2017, the Group had accrued long-term incentive payments of $316,000 (2016: $310,000). There are no
post-employment or termination benefits.

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.

Key management personnel hold 81,636 Redeemable Preference Shares of $1 each (2016: 25,850 shares).

(c) Transactions with associates
The Group has related party transactions with its associates. The details of the transactions are contained in
note 13.

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