Page 63 - NZPM Annual Report 2017

21. COMMITMENTS

(a) Capital commitments
As at 31 March, the Group is committed to the following capital expenditure:

2017 2016
$’000 $’000
Upgrade leasehold premises 0 76
Software 0 371
Motor vehicles 545 20

(b) Operating lease commitments

The Group leases premises, plant and equipment and motor vehicles under operating leases. Operating
leases held over the properties give the Group the right, in most cases, to renew the lease subject to a
redetermination of the lease rental by the lessor. The leases typically run for a period of up to 12 years. There
are no renewal options or options to purchase in respect of operating plant and equipment and motor
vehicles.

The following amounts have been committed to by the Group, but are not recognised in the
financial statements.

2017 2016
$’000 $’000
Within one year 7,237 7,039
One to two years 6,370 5,298
Two to three years 4,623 4,208
Three to four years 2,522 2,650
Four to five years 1,638 1,512
Over five years 2,367 1,097

22. CONTINGENCIES

The Group is subject to a small number of claims which are not considered significant. The directors believe
based on legal advice that the actions can be successfully defended.

The prior year contingencies included legal proceeds against Plumbing World Limited issued by Astivita
limited. In August 2016, the legal proceedings issued by Astivita Limited against Plumbing World Limited were
resolved. Products currently sold under the Astivita label are in the process of being rebranded.

23. SUBSEQUENT EVENTS

In June, NZPM declared a gross rebate dividend to all ordinary shareholders that is the greater of $300 or 4%
of their Grade A Cash. The rebate dividend is payable in cash in September 2017 to all ordinary shareholders
on the share register at the payment date who are not in default of their monthly obligations. The net rebate
dividend payment will be approximately $3,000,000. The rebate dividend will be fully imputed for tax purposes.

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