annual report - Apata

apata 

partners for growth 

annual 

report 

06 

07

Apata trays packed : % of national export crop 

50% 

40% 

30% 

20% 

10% 

0% 

Avos Gold Green Green 

organic 

– Record net profi t of $2.4m, up 15% on 

previous year 

– Gross dividend of 23.1 cents/share 

resulting in a dividend yield of 12.85% 

– Fully shared suppliers, will receive 

a gross return of 44.93 cents/share a 

yield of 25% on current share price 

– Embarked on $5m capital expenditure 

program at the Turntable Road site, to 

support optimum harvest strategy 

– Apata kiwifruit growers led the industry 

in growing for taste and responding to 

ZESPRI’s new quality initiatives 

– Kiwifruit OGR per tray across all 

three products well ahead of 

industry averages 

– Apata’s focus on treating growers’ 

fruit with care and diligence results 

in lowest onshore fruit loss 

– Strong avocado results despite 

signifi cantly reduced volumes 

Change IMAGES 

Highlights Contents 

Apata activities: crops packed during 2006/7 season 

Avos 

Gold 

Green organic 

Green 

The year in review: Chairman and CEO’s report 2 

Financial performance 4 

Kiwifruit 6 

Avocados 10 

Apata strategic review; our challenge 12 

Board of Directors 14 

Executive team 16 

Corporate governance statement 18 

2006/7 fi nancial statements 20 

Security Act Exemption Notice 38 

Company details 40 

apata (annual report 06/07) 

1


2 

The year in review 

“A year of extremely satisfying results in profi tability, 

ROI, fruit quality and delivery – a substantial step 

on our journey towards excellence.” 

Dave Goodwin, Apata Chairman 

On behalf of the Apata Limited Board of Directors, we are 

proud to present our Annual Report for the year ended 

31 March 2007. 

The company produced a best-ever profi tability result 

and a sound return on investment for shareholders. 

Apata shareholders and growers enjoyed exceptional 

results during a year that saw the introduction of 

increasingly complex kiwifruit quality initiatives, industry 

fruit loss issues, intense labour shortages and a partial 

failure of the avocado crop. 

In January 2007 the Board instated new Chief 

Executive Offi cer Todd Muller, formerly ZESPRI 

General Manager Corporate and Grower Services. 

The tactical appointment has bought fresh skills 

and strategic vigour to the senior management 

team, and an added depth of understanding of the 

complexities and opportunities within the industry. 

“It takes growers all year to develop a crop and 

maybe just a day to pick it. After that, grower 

returns depend on how it is treated through 

packing, cool storage, shipment and ultimately 

distribution to any one of 64 countries. I suspect a 

lot of people don’t understand the huge amount of 

trust involved. But I do and I’m making it my goal 

to ensure that growers are appropriately rewarded 

for that unique confi dence they have in us.” 

Todd Muller in The Orchardist, March 2007 

Apata Chairman 

Dave Goodwin and 

CEO Todd Muller 

When the kiwifruit industry renewed its focus on customer 

quality, Apata responded by handling fruit with utmost 

care, resulting in outstanding results for growers and an 

exemplary product delivered to ZESPRI and the market. 

Apata avocado growers’ enthusiasm for the excellent 

returns delivered by the Apata/Primor partnership 

couldn’t be dampened by a Bay of Plenty crop failure or 

the Australian SCAB export debacle. 

Our growers remained committed to producing ideal 

fruit; kiwifruit met all quality expectations and Apata fruit 

generally built upon its growing reputation for quality. 

The Company grew in both size and operational scope, 

maintaining its founding commitment as a growerbuilt 

organisation servicing orchardists needs, while 

introducing new models for customer service and postharvest 

results. 

The excellent annual results support Apata’s fi ve-year 

commitment to quality and operational excellence, a 

dedication often at odds with the prevailing industry focus 

on delivery at pace, regardless of quality into end-markets. 

Our business revolves around our growers, and our 

commitment that their fruit reaches domestic and world 

markets in optimum condition. 

This powerful philosophy underpins our ongoing 

investments in cool chain capacity, capable 

people and increasingly effi cient technology. The 

innovative and hard-working Apata team have 

continued to refi ne the delivery of service and value 

to growers. 

Alongside the success of a profi table year, these are all 

factors that ensure Apata is well positioned to capitalise 

on future opportunities. 


3


4 

The group net profi t (before rebates) for the year in review 

was $2,484,392, an increase of 18% over the previous year. 

The tax paid surplus was $1,496,444, an increase of 20%. 

Increased profi tability came from handling more fruit, 

more effi ciently. Apata was also able to react quickly to 

mid-season market supply opportunities and was well 

rewarded with premium payouts. 

Net profit before tax and rebates 

$ millions 

2.5 

2.0 

1.5 

1.0 

0.5 

0 

Financial performance 

Record profi t 

In our most profi table year to date, your Directors are pleased to 

report that the healthy orchard gate returns experienced by Apata 

growers were echoed by strong fi nancial returns to shareholders. 

2002/3 2003/4 2004/5 2005/6 2006/7 

Rebates Net profit before tax 

Healthy shareholder dividends 

In December 2006 the Company paid Apata shareholders 

an interim gross dividend of 11.94 cents per share (fully 

imputed 8 cents per share), in respect of the 2006/7 

fi nancial year. Our strong fi nancial performance has 

allowed the Board to recommend a fi nal gross dividend of 

12.99 cents per share (fully imputed 8.7 cents per share), 

payable September 2007. This will bring the total gross 

dividend relating to the 2006/7 fi nancial year to 24.93 

cents per share, and when related to the current share 

price of $1.80, provides a dividend yield of 13.85%. 

Retention for growth initiatives 

The net profi t after tax and rebates of $1,496,444 will be 

distributed as follows: 

– Interim dividend $355,703 

– Provision for fi nal dividend $391,977 

– Retained in Company $748,764 

Apata profit distribution (2002/3 - 2006/7) 

$ millions 

2.5 

2.0 

1.5 

1.0 

0.5 

0 

2002/3 2003/4 2004/5 2005/6 2006/7 

Rebates Dividends Retentions Taxation 

Each column represents total profit for each year. Final dividends 

are included in the profit year from which they were allocated. 

This strong fi nancial result has provided the company 

with signifi cant extra retentions, even after paying one of 

the highest dividend yields in the industry. 

Retained tax paid profi ts will be employed on the 

following initiatives: 

Our internal share of the funding of the $5m capital 

projects undertaken at Turntable Road in advance of 

the 2007 kiwifruit harvest; 

Further capital development of the Turntable Road 

and other sites during 2007/8; 

Scheduled major maintenance projects at the 

Turntable Road site during 2007/8, particularly the 

upgrading of our oldest coolstores; 

Building on the funds available to undertake strategic 

initiatives; 

Maintaining the strength of the balance sheet, 

including a reduction in existing term loans. 

Investments in operational excellence 

The Company invested over $5 million into increasing 

our capacity to handle and care for your fruit, from 

harvest to packhouse and on through the entire cool 

chain. Completed by April 2007, Turntable Road projects 

included the new Coolstore 7, a sizeable extension to the 

Green packhouse and a new packaging materials shed. 

Share Price 

Apata investor returns 

$2.00 

$1.80 

$1.60 

$1.40 

$1.20 

$1.00 

$0.80 

$0.60 

$0.40 

$0.20 

$0.00 

2002/3 2003/4 2004/5 2005/6 2006/7 

Stuart Weston, CEO 

December 03 - January 07 

“The Board brought Stuart 

Weston on board at the 

end of 2003. A young CEO, 

Stuart brought energy 

and passion to the role, 

coupled with a real strength 

in operations. Stuart was 

instrumental in implementing our drive for operational 

excellence, and headed the organisation through a 

period of substantial growth and change. We wish him 

well as CEO of Affco.” 

Peter Mayston 

Apata Board of Directors (Chairman 2002 to 2005) 

$0.50 

$0.45 

$0.40 

$0.35 

$0.30 

$0.25 

$0.20 

$0.15 

$0.10 

$0.05 

$0.00 

Gross dividends per share Share price at 31 March 

Earnings (profit before tax, after rebates) per share 

Dividends & Earnings 

The 8-lane sizer was extended and new grading tables 

and infeed systems put in place. 

Share transactions 

The Company successfully completed the sale of all 

treasury stock shares held as at 31 March 2006 and 

originally acquired as Tranche One of the December 

2005 non pro rata share buy back scheme. The Company 

then acquired Tranche Two (see Notes 11 and 14 to the 

fi nancial statements) and had successfully placed most of 

those shares prior to 31 March 2007. The 45,167 shares 

held as treasury stock at that date have since been sold. 

During the past two years over 650,000 Apata Limited 

shares have been acquired by new shareholders or existing 

shareholders increasing their holdings. The strong 

demand is a refl ection of the tremendous confi dence 

shareholders have in the future of the Company. 

Per-tray rebates 

The Board continued to reward all grower shareholders for 

trays supplied, paying rebates totalling $235,053 during the 

year (2006: $240,814). On the basis of the interim dividend 

and rebate paid and the fi nal dividend recommended, 

fully shared suppliers will receive a gross return of 44.93 

(2006: 43.13) cents per share, a yield of 25.0% (2006: 25.4%) 

on the current share price of $1.80 (2006: $1.70). 

The Board continues to encourage suppliers to maintain 

a one share to four trays supplied ratio, in order to 

maximise their rebates and returns and will continue to 

allocate shares in lieu of cash rebates to shareholders 

needing to increase their holdings to the required ratio. 

Human resources 

During the year in review several Apata contract personnel 

were moved to permanent employment status, refl ecting 

the Company’s commitment to retain and reward key staff. 

As the Company matures into a year-round service-based 

operation, offering personnel the security of permanent 

employment is enabling Apata to attract excellent people 

in a tight labour market. 


5


6 

Kiwifruit 

“In an increasingly challenging global market, growers focus on 

delivering quality needs to be maintained. Apata growers should be 

congratulated on a great performance last year and be encouraged to 

continue to respond to the ongoing market and performance signals” 

Tony Nowell - Chief Executive, ZESPRI 

Embracing quality for customers: 

06/07 season 

Apata packed 4,989,760 and cooled 5,762,401 trays of 

Class 1 kiwifruit across four payment pools and processed 

685,174 tray equivalents across 14 categories of non 

standard supply (NSS). 

In 2006 Apata Limited supply to ZESPRI was supported by 

its key supplying partners; Bruntwood Farms, Claremont 

Packhouse, Te Puna Orchards, Western Orchards and 

40 South. In 2007 the Earp family, owners of Te Puna 

Orchards, retired from post harvest operations and 

now supply Apata Limited. Apata acknowledges the 

substantial ongoing commitment the Earp family have 

made to this business and the wider industry. 

Apata supply group : Class 1 kiwifruit trays packed 

Millions 

9 

8 

7 

6 

5 

4 

3 

2 

1 

0 

2002/3 2003/4 2004/5 2005/6 2006/7 

Green Organic Gold 

The Apata supply group comprises Apata (the Group) and four 

affiliate post-harvest service providers. 

More than twenty years of picking, packing and storage 

expertise proved invaluable during a season marred by 

massive fruit loss for other players. 

Working closely with growers and picking fruit at optimum 

maturity, combined with strict temperature consistency 

in the cool stores, stringent inventory management and 

careful curing times, ensured Apata cared for fruit better 

than any other supplier. 

Our pleasing 2006 harvest OGR outcomes were solid in all 

categories, for both per hectare and per tray returns, but 

we acknowledge there is continued work to be done to 

ensure our fi rst-rate quality and cool chain management 

outcomes fl ow through to superior OGR performance 

relative to the industry. 

Apata knows that the primary driver of repeat purchases 

of kiwifruit is taste and Apata has continued to strengthen 

the union between those who grow the fruit and those 

who eat it. The high incidence of Y fruit means Apata 

growers are increasingly conscious of the need for high 

dry matter fruit, and are increasingly able to grow it. 

Green kiwifruit : onshore fruit loss 

0% 

-2% 

-4% 

-6% 

-8% 

-10% 

-12% 

Green organic kiwifruit : onshore fruit loss 

0% 

-2% 

-4% 

-6% 

-8% 

-10% 

-12% 

2003/4 2004/5 2005/6 2006/7 

Average of all other suppliers Apata Limited 

2003/4 2004/5 2005/6 2006/7 


Gold kiwifruit : onshore fruit loss 

0% 

-2% 

-4% 

-6% 

-8% 

-10% 

-12% 

2003/4 2004/5 2005/6 2006/7 


The lower the fruit loss, the higher the return to growers through 

exported fruit value and coolstore incentives. 

Our fruit loss was again significantly less than that incurred 

elsewhere in the industry. 

Y Fruit as % of total submit 

Apata compared to average of all other suppliers 

80% 

60% 

40% 

20% 

0% 

2005/6 2006/7 2007/8 2005/6 2006/7 2007/8 

Apata Limited Industry Green Industry Gold 


7


8 

ZESPRI’s introduction of commercial incentives to 

further improve the quality of New Zealand kiwifruit 

are applauded by Apata and our growers. ECPI wharf 

checks, increased monitoring and surveillance and the 

renewed focus on taste are commendable initiatives that 

keep the industry focused on quality. 

Apata believes that ZESPRI’s quality focus should never 

be swayed by industry players who may have larger 

political infl uence and different performance priorities. 

Apata proved the achievability of these stringent quality 

benchmarks, leading the industry with dry matter profi les 

and low fruit loss statistics. 

Our goals for greater industry clarity were assisted by 

NZKGI’s commendable moves to benefi t growers by 

bringing more transparency to post harvest performance. 

The Company is committed to publishing key delivery 

and performance metrics of the Industry Scorecard, 

regardless of results. Apata growers and shareholders 

have the right to compare results, and our performance 

expectations will be adjusted accordingly. 

Orchard gate return: per tray submitted 

$ OGR per tray 

8 

7 

6 

5 

4 

3 

2 

1 

0 

2004/5 

2005/6 

Apata 

Industry 

2006/7 

2004/5 

2005/6 

Orchard gate return: per hectare 

$,000 OGR per hectare 

50 

40 

30 

20 

10 

0 

2004/5 

Apata 

Industry 

2005/6 

2006/7 

2004/5 

2005/6 

Green Green organic Gold 

2006/7 

2004/5 

2005/6 

2006/7 

2004/5 

2005/6 

Green Green organic Gold 

2006/7 

2006/7 

Year end Industry Scorecard performance 

(DIFOTIS: delivery in full, on time, in specifi cation) 

Green % DIFOTIS 

Rank = 1 out of 10 based on in spec 

% DIFOTIS 

Gold % DIFOTIS 

Rank = 1 out of 10 based on in Spec 

160% 

135% 

197% 

120% 

80% 

89% 

94% 

70% 

89% 

40% 

37% 40% 

0% 

Apata Lowest Average Highest 

% In spec % Quantity 

% DIFOTIS 

160% 

120% 

80% 

40% 

0% 

97% 

150% 

Green organic % DIFOTIS 

80% 91% 105% 

85% 



Rank = 3 out of 7 based on in spec 

% DIFOTIS 

160% 

120% 

80% 

40% 

0% 

93% 117% 

66% 77% 

112% 

91% 


97% 

150% 

96% 119% 


Source: December Supplier Scorecard - Final, Zespri, 22 December 

2006, covering YTD to ISO week 49 

2007 to 2008 season 

Volume increases across all categories 

Apata volumes picked and packed were up across all 

three categories, and we believe industry submit for the 

packing season just ended has the potential to reach the 

signifi cant milestone of 100 million trays for the fi rst time 

in industry history. 

Our off-season investment in new cool store facilities 

allowed us to harvest the crop at optimum conditions and 

favourable weather assisted a smooth harvest operation. 

Crop quality was more variable than last year, but Apata 

continued to deliver above industry averages for taste. 

With much crop still to be exported, we expect onshore 

post harvest infrastructures to again come under pressure 

with fruit deterioration challenges. 

Picking started at the end of ISO week 12 with Kiwistart 

volumes from Hawkes Bay and fi nished 11 weeks later 

with the last of our organic crop through Pyes Pa. 

ZESPRI has signaled strong market conditions, especially 

in Asia, with very healthy in-market prices across our key 

markets. It is clear that adverse foreign exchange rates 

in our key currencies will impact returns this year, but our 

growers are again well placed to weather this sectorwide 

fi nancial storm. 

Apata is performing well across all supplier scorecard 

and quality measures YTD and we remain confi dent that 

this will continue through the remainder of the season. 

Focus on the future 

“In 2006 Apata took a lead in responding to the 

new ZESPRI supply chain framework for delivering 

quality and performance. They’ve shown they 

understand the imperative to meet the market, 

now and in the future.” 

Lain Jager, GM Global Supply. 

The 2006 ZESPRI strategic plan outlined the collective 

efforts required by all industry participants to keep 

kiwifruit from slipping down the commodity slide. ZESPRI 

also signalled that growers and their post-harvest partners 

would need to develop and maintain a clear focus on 

delivering increased value to consumers by taking a 

progressively differentiated product to the market. 

In-market differentiation starts with the fruit. Apata 

expects ZESPRI will demand more from its suppliers and 

growers, expecting us to consistently deliver the worlds’ 

best quality fruit, both in external appearance and in 

internal attributes. 

We support ZESPRI’s drive for in-market differentiation, 

but expect in return that ZESPRI will support and reward 

those who demonstrate the ability to deliver results. 

Past results prove our growers can deliver, and Apata is wellplaced 

to lead the industry in support of ZESPRI’s drive for 

increased fruit value. We congratulate ZESPRI for its focus 

on taste, and for having the courage to lift Maximum Taste 

Payment (MTP) for Green to 40% of fruit value. 

Apata believes grower and post-harvest suppliers should 

be given further incentives to deliver better taste to 

Japan and other priority markets as it is clearly such a 

critical driver for increased consumption. 


9


10 

Step-by-step service promotes 

growth: 2006 to 2007 season 

Apata packed and processed 429,542 trays of avocados, 

split between domestic and export markets and 

representing 21% of the overall market, an increase of 

2.5% over the previous fi nancial year. 

The fi rst to publish their export returns, Apata and Primor 

had the season wrapped up, growers paid and the results 

published weeks before any other packers or exporters. 

The Apata grower returns were again exceptional, and 

above those of key industry competitors. A smaller than 

anticipated biennial crop, considered a complete crop 

failure in the Bay of Plenty, stretched a scarce product 

over a large number of valuable customers. 

Avocados 

“We’re pleased to report the total number of store rejections was 

only 150 trays, after we delivered 153,058 export trays in total.” 

Ted Thomas - Primor Produce 

Change 

Apata avocado grower returns 

IMAGES 

$ 

20 

18 

16 

14 

12 

10 

8 

6 

4 

2 

0 

2004/5 2005/6 2006/7 

Average OGR/tray - export Average OGR/tray - domestic 

Avocado market share 2006/7 

Apata export 

Apata local market 

Rest of industry export 

Rest of industry local market 

Commitment to export was at risk, but careful crop and 

harvest management ensured Apata exported a higher 

percentage than the balance of the industry and satisfi ed 

key customers in growing markets. With Northland 

having the bulk of the fruit, the focus was on continuity 

of export supply. 

Coming after a heavy cropping year, where quality dictated 

profi tability, the industry-wide focus on producing high 

quality fruit lessened. Apata have worked hard between 

seasons to re-focus our growers to minimise the longerterm 

impact of this hiccup in best-production practice. 

Grade standards were altered to address the end-market 

perception of ‘scruffy’ New Zealand fruit; reject rates on 

many lines increased correspondingly and less than 55% 

of fruit handled was exported. 

The November SCAB incident, where access to the 

Australian market was temporarily denied, galvanised 

an already well-organised young industry into a resolute 

and unifi ed grower group. The phyto-sanitary issue did 

not delay trans-Tasman shipping, but the direct cost to 

the industry is conservatively calculated at $500,000. 

Total NZ avocado crop & Apata market share 

2003/4 to 2006/7 

Millions of trays 

6 

5 

4 

3 

2 

1 

0 

30% 

25% 

20% 

15% 

10% 

5% 

0% 

2003/4 2004/5 2005/6 2006/7 

Total avocado crop Apata market share 

Apata avocado management focused their attentions 

on increasing grower services and pricing structures that 

rewarded quality and scale. Apata now handles many 

of New Zealand’s largest avocado producers, and their 

support allows the company to offer a comprehensive 

range of services to all. The Apata architecture was built to 

promote enduring relationships based on aligned values of 

quality and performance and the unique and long-standing 

Apata/Primor relationship has continued to fl ourish within 

this philosophy. Apata growers joined key Primor team 

members to visit the USA market in October 2006. 

Primor has a deep market understanding and a strong 

performance ethos, making them invaluable partners 

for the year in review and beyond. Previous years saw 

the development of a personalised, on-orchard attitude 

to customer service, which continued to evolve into a 

step-by-step suite of value-added services for Apata 

avocado growers. Embraced by avocado growers, the 

service model will be adapted and introduced to kiwifruit 

customers in the near future. 

Avocado focus on the future 

“We know that international fruit supply, especially 

to the USA, is based on trust and long-term 

relationships. The potential markets are colossal, 

but will remain unreachable for those who haven’t 

done the serious groundwork.” 

John Carroll - Chief Executive, Primor Produce 

In a maturing and deregulated avocado industry, Apata 

believes a value-added service ethos and a proactive 

marketing partner are key strategies for future success. 

We expect to lead the industry with the delivery of an 

end-to-end service model that supports early grower 

commitment, superior planning, stronger relationships, 

better delivery and higher returns. Supporting all 

initiatives for industry collaboration and transparency, 

Apata will continue to work alongside their growers, the 

AIC and the AGA to improve industry outcomes in the 

areas of orchard technology, grower education, market 

development and fruit quality. 

This season, now underway, Apata will handle a large 

percentage of the biggest crop in the history of the New 

Zealand avocado industry. The company relishes the 

opportunity to fl ex our logistic muscles, and employ the 

knowledge gained from years handling large kiwifruit 

crops. Apata intends to manage, harvest, transport and 

handle this years volume in a manner that exceeds our 

growers and marketers expectations. 

Avocado plantings in the Mid and Far North continue 

unabated, including some unprecedented new orchards 

between 400-600 planted acres (up to 40,000 trees). 

Apata is poised to capture future opportunities offered by 

developments such as new varietals, increasing organic 

production and added-value processing technologies. 


11


12 

Apata strategic review; our challenge 

The Company is in the process of undertaking the most 

critical strategic review of its 23 year history. 

Apata has continued to fl ourish under the governance 

of a stable Board of knowledgeable and dedicated 

Directors and their intimate understanding of our industry 

is invaluable as the Company looks towards exciting 

developments to come. 

The industry is changing quickly, with varying visions 

for post harvest and growers emerging. The Board 

anticipates the review process will ensure Apata and its 

growers are best placed to capture the value that exists 

for companies that can deliver for the customers of 

ZESPRI and Primor. 

The review will further identify: 

governance priorities and enabling management 

structure 

potential for improvements in operational 

performance, effi ciency and cost control 

investment in increased capacity, technology and 

skilled personnel 

priorities for service and information fl ow from the 

Company to growers 

The Board looks forward to presenting aspects of the 

review to shareholders at the upcoming Annual General 

Meeting in August 2007. 

Rewards for performance and support 

As partners for growth, Apata view the achievements of 

the 2006/07 business year as an expected step on our 

journey, and a continued progression towards excellence. 

We commend and thank our growers, shareholders, 

partners and our own people for building our collective 

knowledge, our performance on-orchard, and our 

post harvest results. Apata will work tirelessly for its 

growers, who are the industry’s top performers, to see 

they are rewarded for their hard work in responding to 

consumer demand. 

Our industry is ever-changing and each year provides 

new opportunities to lift our collective performance in 

response to customer needs. 

Thank you for your continued support. 

Dave Goodwin 

Chairman 

Todd Muller 

Chief Executive Offi cer 


13


14 

From left to right 

Peter Rogers 

Peter Rogers is a qualifi ed Chartered 

Accountant and partner in Finn & 

Partners Chartered Accountants, Te 

Awamutu. A member of the Human 

Resources Institute of New Zealand 

and the Institute of Directors, 

Peter has a master of Business 

Administration degree from the 

Univeristy of Waikato. 

Peter has considerable business 

experience in both private and 

public sectors, and holds a number 

of directorships and trusteeships in 

a variety of diverse enterprises. 

Peter Mayston 

An Apata shareholder and director 

since incorporation, Peter Mayston 

has grown kiwifruit, avocados and 

citrus for more than 30 years and 

operated a kiwifruit packhouse for 

most of that time. He is a former 

director of Taura Natural Ingredients 

Limited and a delegate of the New 

Zealand Orchard and Vineyard 

Employers Association. 

Max McGreevy 

Growing kiwifruit in Athenree 

since 1981, Max McGreevy started 

Claremont Packhouse as a contract 

packing shed in 1984. An Apata 

Limited shareholder since 1993, Max 

was appointed as a Director in 1994. 

Also a Director of Apata Suppliers 

Entity Limited, Max is integrally 

involved in orchard ownership and 

kiwifruit packing, with shareholding 

in Tetley Coolstores Limited. 

Apata Board of Directors 

Retiring director 

“Peter Rogers became a commercial appointee to the Apata Board in 2001. 

His commercial skills and business experience have enabled him to provide 

very valuable input into Board debate over the last six years. 

Since balance date Peter has retired as a director of Apata and, on behalf of the 

board and shareholders, I wish to thank him for his contribution to the company.” 

Dave Goodwin, Chairman 

Dave Goodwin, Chairman 

Dave Goodwin has been involved 

with the kiwifruit industry since 1979, 

both as a grower and packhouse 

operator. Dave has had extensive 

experience in the post harvest 

sector and industry governance 

having been a past managing 

director of Centrepac Packhouse 

& Coolstore Limited, former CEO 

of Apata Limited, past president of 

Tauranga Fruitgrowers’ Association 

Incorporated and foundation 

board member of Horticulture New 

Zealand. Dave has served on many 

kiwifruit industry bodies including 

NZKGI and IAC. 

Mike Muller 

A founding Apata director, Mike 

Muller is a past executive of the 

Tauranga Fruitgrowers’ Association 

and has been a kiwifruit grower 

and integral industry participant for 

more than 30 years. 

Mike heads the successful Muller 

& Associates kiwifruit consultancy 

business. 

Paul O’Brien 

Paul O’Brien has been growing 

kiwifruit since 1978 when his 

family developed an orchard at 

Aongatete. He established his 

own orchard contracting business 

in 1987, and grows avocados and 

green and gold kiwifruit on his own 

orchard. An executive member of 

Katikati Fruitgrowers’ Association 

Incorporated, Paul was elected to 

the steering committee to form 

Apata Suppliers Entity Limited in 

1996, became a director of the entity 

in 1998 and chairman in 2001. An 

Apata Limited director since 2003, 

Paul and his wife Paula have been 

shareholders since 1991. 


15


16 

From left to right 

Marilyn Haywood 

Operations Manager 

Marilyn began her career as a kiwifruit packhouse and 

coolstore manager over 25 years ago, and has worked 

within the industry during its various stages, during the 

NZ Kiwifruit Authority, the Kiwifruit Marketing Board 

and now the ZESPRI era. In 1996 Marilyn joined Apata, 

bringing her extensive knowledge and expertise in 

dealing with fruit quality and the off-shore experience 

gained while working for NZKA. Highly regarded in the 

kiwifruit industry, Marilyn oversees operations across all 

three Apata sites. 

Executive team 

Tim Torr 

Business Development Manager 

With a horticultural science degree and a passion for 

the science of the kiwifruit industry, Tim joined Apata 

in 2002, initially responsible for the grower services 

team. Now Tim focuses on the transfer of technical 

information to Apata growers and the development and 

implementation of innovative programs that enhance 

growers’ on-orchard success. 

Peter Carter 

Commercial Manager 

A chartered accountant, Peter Carter worked as a 

company accountant for Turners & Growers (Auckland) 

for 15 years. Peter left his role as the fi nance manager of a 

South Auckland packhouse last year and joined Apata as 

their commercial manager. Peter is working on fi nancial 

modelling and contract preparation for Apata, as well as 

managing kiwifruit supply during the season just past. 

Todd Muller 

Chief Executive Offi cer 

Todd joined Apata in January 2007 after eight years in 

senior management roles at ZESPRI. With a Masters 

Degree from Waikato University, Todd has worked with 

the National Party (and then Prime Minister Jim Bolger) 

and Fonterra, New Zealand’s largest company. Todd’s 

vast industry experience, strong existing relationships 

and deep understanding of growers’ needs are proving 

invaluable in his new role. 

Phil Reed 

Client Services Delivery Manager 

Phil has been involved in the kiwifruit industry for 16 

years, having worked his way through the cadetship 

system and then into managing orchards. An avocado 

grower for the past 11 years, Phil has also managed 

his own substantial harvesting operation. Phil joined 

Apata as a grower services representative in 2003, and 

quickly progressed to managing the company’s avocado 

division. From 2006 Phil has managed the overall grower 

services team, responsible for delivering services to both 

kiwifruit and avocado growing customers. 

Colin Reilly 

Chief Financial Offi cer 

Colin joined Apata in 2004 on his return from Europe. 

As Chief Financial Offi cer, he is responsible for the 

overall fi nance and information systems functions. 

Before joining Apata, Colin held senior management 

positions in Tauranga and abroad, including roles at 

KPMG, Design Mobel, Reuters and BAA McArthurglen. 

Colin also has experience in manufacturing and services. 

Colin is a Chartered Accountant and has a Bachelor of 

Management Studies from the University of Waikato. 

Dinah Rutherford 

Executive Administrator 

Dinah started working in the kiwifruit industry when she 

moved to Tauranga in 1996. With an extensive career in 

education management, Dinah’s role at Apata includes 

responsibility for the administration and accounting 

for Apata Suppliers Entity and the management of 

the grower pools. Dinah also provides secretarial and 

administrative support to the Board, Chief Executive 

Offi cer and company executive. 


17


18 

Corporate governance statement 

Responsibilities and functions of the board 

The Board of Directors is responsible to shareholders for 

the performance of the Group. Responsibility for day to 

day operations and administration is delegated by the 

Board to the Chief Executive Offi cer. 

Board composition 

The Company’s constitution permits a minimum number 

of two directors, and a maximum of six. 

At each general meeting, one third of the ordinary 

directors shall retire from offi ce. A retiring ordinary 

director shall be eligible for re-election. 

The Board may by resolution from time to time appoint 

and remove one additional person as a director (“the 

additional director”). The additional director will hold 

offi ce for such term as is determined by the Board at the 

time of appointment, up to a maximum term of 3 years. 

The Chairman is elected annually by the Board at the fi rst 

directors’ meeting following the annual meeting. 

A director is not required to hold shares. 

Audit & risk committee 

The audit and risk committee is made up of three 

directors. The committee members during the year under 

review were Peter Rogers (Chairman), David Goodwin 

and Max McGreevy. Members of the executive and the 

external auditors are invited to committee meetings as 

deemed necessary. 

The primary role of the committee is to assist the Board 

to meet its responsibilities in respect of the Group’s 

accounting practices, reporting requirements and 

internal controls. 

These responsibilities include: 

1. Monitoring of corporate risk assessment and the 

internal controls instituted; 

2. Review of the annual fi nancial statements, audit 

fi ndings and processes; 

3. Review of accounting processes and interim fi nancial 

information, including budgets; 

4. Review of the frequency and signifi cance of all 

transactions between the company and related 

parties and assessment of their propriety; 

5. Oversight of compliance with statutory 

responsibilities relating to fi nancial, shareholder and 

other requirements. 

The Board may establish other committees on an ad hoc 

basis as required from time to time. 

Delegation of authority 

The constitution restricts certain authorities to the 

Board, but provides for authority on other matters to be 

delegated. The Board has delegated certain authority to 

the audit and risk committee and to senior management, 

particularly to facilitate the day-to-day management of 

the business, including the signing of contracts and 

other documents. 

Confl icts of interest 

Where any director has a confl ict of interest or is 

otherwise interested in any transaction, that director is 

required to disclose his confl ict of interest, and thereafter 

neither participate in the discussion nor vote in relation 

to the relevant matter. The Group maintains a register of 

disclosed interests. 

The role of shareholders 

The Board aims to ensure that shareholders are 

informed of all major developments affecting the 

Group’s state of affairs. Information is communicated 

to shareholders in the annual report, newsletters and 

other correspondence. The Board encourages full 

participation of shareholders at the annual meeting to 

ensure understanding of and support for the Group’s 

strategies and goals. 

Apata Limited and Group 

2006/7 fi nancial statements 


19


20 

Financial statements index 

Apata Limited and Group : 

2006/7 fi nancial statements 

The directors are pleased to present the fi nancial 

statements of Apata Limited and Group for the year 

ended 31 March 2007. 

For and on behalf of the Board of Directors: 

D J Goodwin 

Chairman 

12 July 2007 

Statement of fi nancial performance 21 

Statement of movements in equity 21 

Statement of fi nancial position 22 

Statement of cash fl ows 23 

Notes to the fi nancial statements 24 

Auditors’ report 35 

Statutory information 36 

M R McGree McGreevy 

Director 

12 July 2007 

Statement of fi nancial performance 

Year ended 31 March 2007 

2007 2007 2006 2006 

Notes Group Company Group Company 

Income 

Gross operating revenue 31,923,788 31,116,913 29,105,417 27,871,616 

Net contribution from operations 10,182,055 10,153,178 8,722,004 8,685,933 

Interest received 210,131 171,831 121,106 100,017 

Dividends received 21,432 21,432 18,181 68,181 

Total 10,413,618 10,346,441 8,861,291 8,854,131 

Less expenses 3 8,164,279 8,148,866 6,989,923 6,967,538 

Net surplus before taxation 2,249,339 2,197,575 1,871,368 1,886,593 

Tax expense 4a 752,895 735,813 622,387 610,912 

Net surplus after taxation 1,496,444 1,461,762 1,248,981 1,275,681 

Statement of movements in equity 


2007 2007 2006 2006 


Net surplus for the year 1,496,444 1,461,762 1,248,981 1,275,681 

Total recognised revenue 

and expenses 1,496,444 1,461,762 1,248,981 1,275,681 

Less dividends paid to shareholders (693,615) (693,615) (360,189) (360,189) 

Less treasury stock purchased 11 (377,221) (377,221) (375,802) (375,802) 

Add treasury stock sold 11 444,059 444,059 233,583 233,583 

Add new shares issued 5,309 5,309 - - 

Movements in equity for the year 874,976 840,294 746,573 773,273 

Total equity at beginning of year 7,341,558 7,252,397 6,594,985 6,479,124 

Total equity at end of year 8,216,534 8,092,691 7,341,558 7,252,397 


21


22 

Statement of fi nancial position 

As at 31 March 2007 

2007 2007 2006 2006 


Current assets 

Bank 5 1,029,303 427,707 260,126 175,924 

Short term deposits 6,414 6,414 599,235 599,235 

Goods and Services Tax receivable 421,011 378,844 155,568 116,171 

Accounts receivable 689,109 1,093,085 1,861,800 1,850,651 

Inventories 6 1,836,708 1,836,708 1,813,837 1,813,837 

Taxation receivable 4b 65,721 65,450 - - 

4,048,266 3,808,208 4,690,566 4,555,818 

Investments 7 63,078 63,178 61,641 61,741 

Fixed assets 8 11,890,810 11,890,810 9,683,205 9,683,205 

Total assets 16,002,154 15,762,196 14,435,412 14,300,764 

Current liabilities 

Accounts payable 9 4,514,498 4,398,383 3,143,201 3,097,505 

Taxation payable 4b - - 37,873 38,082 

4,514,498 4,398,383 3,181,074 3,135,587 

Term liabilities 

Term loans 10 3,200,000 3,200,000 3,800,000 3,800,000 

Other liabilities 

Deferred taxation 4c 71,122 71,122 112,780 112,780 

Total liabilities 7,785,620 7,669,505 7,093,854 7,048,367 

Shareholders funds equity 

and reserves 

Paid in share capital 11 5,390,216 5,390,216 5,318,069 5,318,069 

Capital reserve 140,204 140,204 140,204 140,204 

Retained earnings 2,686,114 2,562,271 1,883,285 1,794,124 

Total equity 8,216,534 8,092,691 7,341,558 7,252,397 

Total liabilities and equity 16,002,154 15,762,196 14,435,412 14,300,764 

Statement of cash fl ows 


2007 2007 2006 2006 


Cash fl ows from operating activities 

Cash was provided by / (applied to) 

Receipts from customers 32,814,831 31,665,130 28,921,444 27,722,862 

Interest received 210,131 171,831 121,106 100,017 

Dividends received 20,122 20,122 17,582 67,582 

Income tax paid (898,147) (881,003) (647,151) (639,280) 

Payments to suppliers and employees (28,415,502) (27,762,039) (25,409,946) (24,313,957) 

Interest paid (320,965) (320,965) (344,161) (344,161) 

Net cash fl ows from operating activities 12 3,410,470 2,893,076 2,658,874 2,593,063 

Cash fl ows from investing activities 


Proceeds from sale of fi xed assets 67,666 67,666 - - 

Acquisition of fi xed assets (2,080,312) (2,080,312) (3,252,822) (3,252,822) 

Acquisition of investments - - - (100) 

Net cash used in investing activities (2,012,646) (2,012,646) (3,252,822) (3,252,922) 

Cash fl ows from fi nancing activities 


Treasury stock purchased (377,221) (377,221) (375,802) (375,802) 

Proceeds from sale of treasury stock 444,059 444,059 233,583 233,583 

Dividends paid (693,615) (693,615) (360,189) (360,189) 

Issue of shares 5,309 5,309 - - 

Proceeds from borrowings - - 2,200,000 2,200,000 

Repayment of borrowings (600,000) (600,000) (1,000,000) (1,000,000) 

Net cash (used in) / from fi nancing 

activities (1,221,468) (1,221,468) 697,592 697,592 

Net increase / (decrease) in cash held 176,356 (341,038) 103,644 37,733 

Add cash at beginning of year 859,361 775,159 755,717 737,426 

Total cash balance at end of year 1,035,717 434,121 859,361 775,159 

This is represented by: 

Bank 1,029,303 427,707 260,126 175,924 

Short term deposits 6,414 6,414 599,235 599,235 

1,035,717 434,121 859,361 775,159 


23


24 

Notes to the fi nancial statements (year ended 31 March 2007) 

Note 1 : Statement of signifi cant accounting policies 

Basis of preparation 

The fi nancial statements presented are those of Apata 

Limited (“the Company”) and its wholly owned subsidiary 

(collectively “the Group”). 

Apata Limited is registered under the Companies Act 

1993, and is an issuer for the purposes of the Financial 

Reporting Act 1993. 

The fi nancial statements comply with the Financial 

Reporting Act 1993, and comprise statements of the 

following: fi nancial performance, movements in equity, 

fi nancial position, cash fl ows, signifi cant accounting 

policies and notes to these fi nancial statements. 

The fi nancial statements are prepared on the basis of 

historical cost except that certain assets were revalued 

in 1991 under the transitional provisions of FRS-3. No 

further revaluations have been made since this date. 

The fi nancial statements have been prepared in 

accordance with generally accepted accounting practice 

in New Zealand. 

Where no fi nancial reporting standard or statement of 

standard accounting practice exists in New Zealand in 

relation to a particular issue, the accounting policies 

and disclosures adopted have been determined having 

regard to authoritative support. 

The fi nancial statements are in New Zealand dollars. 

Basis of consolidation 

The Group fi nancial statements incorporate the fi nancial 

statements of the Company and its wholly owned 

subsidiary, Apata Suppliers Limited, which has been 

consolidated using the purchase method. All intercompany 

transactions, balances and unrealised profi ts 

are eliminated on consolidation. 

Specifi c accounting policies 

The following specifi c accounting policies, which 

materially affect the measurement of fi nancial 

performance and fi nancial position, have been adopted. 

Revenue recognition 

Revenue is recognised in the statement of fi nancial 

performance when a transaction gives rise to an increase 

in the value of net assets, and that increase can be 

measured with reliability. 

Accounts receivable 

Accounts receivable have been stated at their estimated 

net realisable value after due allowance for bad and 

doubtful debts. 

Consolidation 

Apata Suppliers Limited has the ultimate contract to supply 

Zespri with kiwifruit. Apata Suppliers Limited also arranges 

the logistics services and receives revenue for this service 

performed on behalf of growers (via Southlink Limited). 

On the basis that Apata Suppliers Limited is acting only 

as agent, and not owner of the fruit, the receipts and 

payments are not refl ected as revenue and expenses, 

and instead treated as ‘pass-through’ money, having 

no impact on fi nancial performance. Accordingly those 

Zespri receipts in respect of payments to growers are 

excluded from the statement of fi nancial performance 

and the statement of cash fl ows. 

Investments 

Investments are valued at cost. Interest income is 

recognised in the statement of fi nancial performance 

as it accrues. Dividend income is recognised in the 

statement of fi nancial performance on the date the 

dividend is declared. 

Inventories 

Inventories have been valued at the lower of cost or 

net realisable value on a fi rst-in fi rst-out basis after due 

allowance for damaged and obsolete stock. Some 

inventories are subject to retention of title clauses. 

Orchard work in progress comprises direct expenses for 

leased orchards, including growing costs and rentals, 

which are carried forward in the statement of fi nancial 

position as an asset to be matched against the income to 

which they relate (i.e. against the crop proceeds). 

Goods and Services Tax 

All amounts are shown exclusive of Goods and Services 

Tax (GST), except for receivables and payables that are 

stated inclusive of GST. 

Taxation 

Income tax expense is recognised on the operating 

surplus before taxation adjusted for permanent differences 

between taxable and accounting income. The tax effect 

of all timing differences, which arise from items being 

brought into account in different periods for income tax 

and accounting purposes, are recognised in the statement 

of fi nancial position as a future tax benefi t or a provision 

for deferred tax. The future tax benefi t or provision for 

deferred tax is stated at the income tax rates prevailing 

at balance date. Future tax benefi ts are not recognised 

unless realisation of the asset is virtually certain. 

Provision for dividends 

Dividends are recognised in the period that they are 

authorised and approved. 

Fixed assets and depreciation 

The Group has fi ve classes of fi xed assets; all fi xed assets 

are valued at cost less depreciation except those assets 

which were revalued in 1991 – refer notes 1 and 8. Where 

a fi xed asset is disposed of, the gain or loss recognised in 

the statement of fi nancial performance is calculated as the 

difference between net sales price and carrying value. 

Note 2 : Segmental information 

The Group operates predominantly in one industry, being 

the packing and coolstoring of kiwifruit and avocados. 

All operations are carried out within New Zealand. 

Note 3 : Expenses 

Depreciation is charged from the time the assets become 

operational. For taxation purposes, the Group claims 

the maximum depreciation allowed by the Income Tax 

Act 2004. For accounting purposes, depreciation is 

calculated using straight-line depreciation rates which 

write off the cost of the asset, less any residual value, 

over its expected useful economic life: 

– Land Not depreciated 

– Buildings 10-50 years 

– Plant and equipment 5-15 years 

– Vehicles 5-15 years 

– Offi ce equipment and furniture 3-20 years 

Changes in accounting policies 

All policies have been applied on a basis consistent with 

those used in previous years. 

Changes in comparatives 

Certain comparatives have been aligned with current 

year presentation. 

2007 2007 2006 2006 


Expenses include: 

Shareholder rebates 235,053 235,053 240,814 240,814 

Audit fees 24,007 24,007 31,092 30,092 

Director’s fees 109,250 109,250 67,000 67,000 

Depreciation 8 1,326,458 1,326,458 1,559,200 1,559,200 

(Gain) / loss on sale of fi xed assets 8 (67,531) (67,531) 14,410 14,410 

Interest expense 309,752 309,752 357,117 357,073 

Operating lease expenses 915,039 915,039 775,030 775,030 

Bad debts (recovered) / expense (4,253) (4,253) 7,825 7,825 


25



26 

Note 4 : Taxation 

2007 2007 2006 2006 

Group Company Group Company 

4a) Income tax expense 

Net surplus before taxation 2,249,339 2,197,575 1,871,368 1,886,593 

Adjusted for permanent differences: 

Non deductible expenses 53,593 53,593 32,834 32,834 

Imputation credits received 10,556 10,556 8,955 33,582 

Taxable income 2,313,488 2,261,724 1,913,157 1,953,009 

Tax expense at 33% 763,451 746,369 631,342 644,494 

Less imputation credits (10,556) (10,556) (8,955) (33,582) 

Total income tax expense 752,895 735,813 622,387 610,912 

Total income tax expense is made up of: 

Current taxation 794,553 777,471 659,062 647,587 

Deferred taxation (41,658) (41,658) (36,675) (36,675) 

752,895 735,813 622,387 610,912 

4b) Taxation (receivable) / payable 

Opening balance 37,873 38,082 25,962 29,774 

Current taxation charge for the year 794,553 777,471 659,062 647,587 

Taxation paid during the year (852,193) (847,613) (620,737) (619,779) 

Resident withholding tax paid (45,954) (33,390) (26,414) (19,500) 

Closing balance (65,721) (65,450) 37,873 38,082 

4c) Deferred taxation liability 

Opening balance 112,780 112,780 149,455 149,455 

Current year movement (41,658) (41,658) (36,675) (36,675) 

Closing balance 71,122 71,122 112,780 112,780 

4d) Imputation credit account 

Opening balance 1,374,926 1,330,379 896,227 834,925 

Add imputation credits attached to 

dividends received 10,556 10,556 8,955 33,582 

Add taxation and RWT paid during 

the year 898,147 881,003 647,151 639,279 

Less imputation credits attached to 

dividends paid (341,631) (341,631) (177,407) (177,407) 

Closing balance 1,941,998 1,880,307 1,374,926 1,330,379 

Note 5 : Bank overdraft 

The Company has a bank overdraft facility with ANZ 

National Bank Limited which is secured by a General 

Security Agreement over all present and after acquired 

property of the Group and also by a fi rst mortgage over 

the Group’s land and buildings. The overdraft facility as 

at 31 March 2007 was $3,000,000 (2006: $2,000,000); of 

this $3,000,000 was not utilised at 31 March 2007. 

Note 6 : Inventories 

The Group leases kiwifruit orchards. Lease payments 

are based upon orchard rental, production levels, 

productivity and market profi t. Lease expenses are 

contingent upon the number of trays packed for each 

leased orchard and are not quantifi able until fi nal harvest 

returns are confi rmed. The Group has responsibility for 

the day to day management and control of the orchard 

Investments consist of shares in the following companies: 

Investments are stated at cost. The investment in Apata 

Suppliers Limited is eliminated upon consolidation. 

2007 2007 2006 2006 


Packaging 1,250,011 1,250,011 1,379,738 1,379,738 

Orchard work in progress 258,540 258,540 234,999 234,999 

Work in progress – current harvest 328,157 328,157 199,100 199,100 

1,836,708 1,836,708 1,813,837 1,813,837 

Note 7 : Investments 

businesses and of all operations on the orchards. The 

Group is entitled to receive all payments from the sale of 

class l kiwifruit from these leased orchards. 

Packhouse operations in respect of the 2007 harvest 

commenced in the days immediately prior to 31 March 2007. 

Costs incurred have been aggregated to work in progress. 

2007 2007 2006 2006 


MG Marketing Limited 36,424 36,424 35,100 35,100 

Ballance Agri-Nutrients Limited 3,321 3,321 3,208 3,208 

SouthLink Limited 23,333 23,333 23,333 23,333 

Apata Suppliers Limited - 100 - 100 

63,078 63,178 61,641 61,741 


27



28 

Note 8 : Fixed assets 

Market valuation 

Certain land and buildings with a book value at 31 March 

2007 of $4,145,012 (2006: $3,903,445) at the Apata site 

were independently valued on 9 November 2006 by Mr J 

D Bennie of 3D Consultancy at $9,500,000. Mr Bennie is 

a member of the New Zealand Institute of Valuers. 

Plant, equipment and motor vehicles of the Group were 

valued on 1 October 2005 by Mr G Scoullar of Asset 

Valuations Limited, Tauranga, at $7,403,620. The book 

value of that same group of assets, excluding additions 

subsequent to the valuation, as at 31 March 2007 was 

Capital works in progress 

Capital works in progress represents costs incurred to 

balance date on capital programmes due for completion 

in future fi nancial periods. 

Cost / Current Gains / Accumulated Closing 

revaluation depreciation (losses) on depreciation book value 

charge disposal 

Company and Group at 

31 March 2007 

Land 1,470,326 - - - 1,470,326 

Buildings 3,875,811 107,692 - 647,207 3,228,604 

Plant and equipment 14,435,396 1,048,562 65,000 9,648,635 4,786,761 

Vehicles 986,269 43,949 2,667 761,297 224,972 

Offi ce equipment and furniture 806,835 126,255 (136) 478,325 328,510 

Capital works in progress 1,851,637 - - - 1,851,637 

Total 23,426,274 1,326,458 67,531 11,535,464 11,890,810 

Company and Group at 

31 March 2006 

Land 1,462,514 - - - 1,462,514 

Buildings 3,426,030 98,517 (9,344) 539,515 2,886,515 

Plant and equipment 14,281,052 1,288,838 (1,553) 9,471,243 4,809,809 

Vehicles 1,028,144 55,852 - 830,795 197,349 

Offi ce equipment and furniture 724,928 115,993 (3,513) 397,910 327,018 

Total 20,922,668 1,559,200 (14,410) 11,239,463 9,683,205 

$4,258,724 (2006: $5,405,747). Mr Scoullar is a member 

of the Institute of Plant and Machinery Valuers. The 

valuations placed on assets were based on their market 

value for a going concern. 

These revaluations were not incorporated in the fi nancial 

statements. Certain plant and equipment assets were 

revalued in 1991, and then depreciated over their 

expected useful lives. No further revaluations have been 

made since this date. 

Costs will be recognised as fi xed assets, and depreciation 

will commence immediately following commissioning 

of works. 

2007 2007 2006 2006 


Coolstore construction 1,384,367 1,384,367 - - 

Site development works 467,270 467,270 - - 

Total capital works in progress 1,851,637 1,851,637 - - 

Note 9 : Accounts payable 

Accounts payable consists of the following: 

Term loans consist of the following: 

ANZ National Bank Limited loans are secured by General 

Security Agreement over all present and after acquired 

property of the Group and by a fi rst mortgage over 

Group land and buildings. 

Loan 016 entered into on 27 May 2004 is a fl oating rate 

interest only mortgage, with interest being based on the 

Bank’s 90 day bill rate. The loan term expires on 20 May 

2009. The company repaid $600,000 in November 2006. 

Repayment terms of term liabilities 

Non-current borrowings are repayable as follows: 

2007 2007 2006 2006 


Trade 2,653,720 2,537,605 2,823,843 2,778,147 

Employee entitlements 279,828 279,828 181,082 181,082 

Fixed assets 1,560,966 1,560,966 107,079 107,079 

Interest accrual 19,984 19,984 31,197 31,197 

4,514,498 4,398,383 3,143,201 3,097,505 

Note 10 : Term loans 

Effective Final 

interest rate repayment 2007 2007 2006 2006 

31.3.2007 date Group Company Group Company 

ANZ National Bank 

Limited loans 

# 016 8.74% 20/05/09 1,000,000 1,000,000 1,600,000 1,600,000 

# 017 8.83% 3/06/10 2,200,000 2,200,000 2,200,000 2,200,000 

3,200,000 3,200,000 3,800,000 3,800,000 

Loan 017 for $2,200,000 entered into on 31 May 2005 is a 

fl oating rate interest only mortgage, with interest being 

based on the Bank’s 90 day bill rate. The loan expires 3 

June 2010. 

A new loan entered into after balance date is reported 

in Note 19. 

2007 2007 2006 2006 


Current portion - - - - 

Later than one, not later than two years - - - - 

Later than two, not later than fi ve years 3,200,000 3,200,000 3,800,000 3,800,000 

3,200,000 3,200,000 3,800,000 3,800,000 


29



30 

Note 11 : Share capital 

The 83,659 shares held as treasury stock as at 31 March 

2006 were all onsold during the period to 31 August 

2006. The Company then purchased a further 221,894 

shares from shareholders as treasury stock, and onsold 

176,727 of those shares in the period to 31 March 2007. 

The cost of the remaining 45,167 shares held as treasury 

stock at 31 March 2007 was $ 76,784 (2006: $142,219). 

2007 2007 2006 2006 

Number Value ($) Number Value ($) 

Issued and paid up capital as at 1 April 4,418,702 5,318,069 4,502,361 5,460,288 

Shares purchased as treasury stock (221,894) (377,221) (221,060) (375,802) 

Shares sold from treasury stock 260,386 444,059 137,401 233,583 

New shares issued 3,123 5,309 - - 

Closing balance 4,460,317 5,390,216 4,418,702 5,318,069 

The treasury stock purchases have been made in 

accordance with the non pro rata share buy back 

agreement entered into during 2005, to be completed 

in three tranches. The Company is committed to 

purchasing the third and fi nal tranche on or before 19 

December 2007. 

Note 12 : Reconciliation of net surplus after tax with net cash fl ows from 

operating activities 

The following is a reconciliation between the surplus after 

taxation shown in the statement of fi nancial performance 

and the net cash fl ow from operating activities. 

2007 2007 2006 2006 


Net surplus after taxation 1,496,444 1,461,762 1,248,981 1,275,681 

Add / (less) non cash items: 

Depreciation 1,326,458 1,326,458 1,559,200 1,559,200 

(Gain) / loss on disposal of fi xed assets (67,531) (67,531) 14,410 14,410 

Movement in deferred tax (41,658) (41,658) (36,675) (36,675) 

Investment activities (capitalised dividends) (1,437) (1,437) (1,229) (1,229) 

Add / (less) movement in working capital: 

Inventories (22,871) (22,871) (189,280) (189,280) 

Accounts receivable 1,172,691 757,566 154,862 (116,022) 

Goods and Services Tax (265,443) (262,673) 101,770 108,760 

Interest payable (11,213) (11,213) 12,913 12,913 

Trade creditors and other payables (71,376) (141,795) (217,989) (43,003) 

Taxation payable (103,594) (103,532) 11,911 8,308 

Net cash fl ows from operating activities 3,410,470 2,893,076 2,658,874 2,593,063 

Note 13 : Related party transactions 

The directors trade with the Group in the normal course 

of business. All transactions are at arms length and 

on normal trading terms. Parties associated with the 

directors contribute to a signifi cant portion of the Group’s 

turnover. No debts owing to or from related parties have 

been written off during any year. There are no amounts 

outstanding at the respective balance dates. 

The following transactions were entered into by the 

directors and/or associated parties: 

2007 2007 2006 2006 


Payments for rebates, kiwistart and non 

standard supply fruit value 

David Goodwin 120,169 120,169 61,654 61,654 

Max McGreevy 76,026 76,026 64,027 64,027 

Peter Mayston 90,068 90,068 16,455 16,455 

Michael Muller 6,815 6,815 1,364 1,364 

Paul O’Brien 55,942 55,942 10,446 10,446 

Payments for dividends (net) 

David Goodwin 40,022 40,022 20,657 20,657 

Max McGreevy 78,961 78,961 40,754 40,754 

Peter Mayston 85,942 85,942 44,357 44,357 


Paul O’Brien 4,913 4,913 1,198 1,198 

Payments for executive services/ 

consultancy fees 

David Goodwin - - 12,791 12,791 

Peter Mayston - - 1,091 1,091 

Michael Muller - - 9,438 9,438 

Peter Rogers 2,750 2,750 4,195 4,195 

Payments for harvest and picking services 

Max McGreevy 16,592 16,592 13,214 13,214 

Peter Mayston 14,980 14,980 8,093 8,093 

Paul O’Brien 219,517 219,517 263,091 263,091 

Payments for avocados 

Max McGreevy 13 13 1,829 1,829 

Peter Mayston 225 225 1,968 1,968 

Paul O’Brien 28,720 28,720 2,501 2,501 

Payments for other goods and services 

Max McGreevy 46,628 32,907 32,773 32,773 

Peter Mayston 4,213 - 16,476 16,476 

Paul O’Brien - - 30,996 30,996 

Purchases of packaging by directors 

Max McGreevy 455,649 455,649 377,092 377,092 

Peter Mayston 148,821 148,821 235,593 235,593 

Other purchases by directors 

David Goodwin 35,243 35,243 4,187 4,187 

Max McGreevy 86,299 74,398 240 240 

Peter Mayston 94,386 88,597 11,505 11,505 


Paul O’Brien 117,118 117,118 10,295 10,295 


31



32 

SouthLink Limited 

SouthLink Limited provides logistical services for the 

Group and other industry parties at commercial rates. 

Mr Goodwin is Chairman and Mr Todd Muller a director 

of SouthLink Limited, representing the Apata Group. 

During the year to 31 March 2007, payments amounting 

to $774,911 (2006: $744,256) for logistical services were 

made by Apata Suppliers Limited to SouthLink Limited. 

SouthLink Limited paid Apata Limited $9,000 (2006: 

$9,750) for offi ce space, $5,000 (2006: $5,000) in directors 

fees and $236,333 (2006: $96,142) in rebates. 

Centrepac Packhouse & Coolstore Limited 

Apata Limited leases the building at Pyes Pa from 

Centrepac Packhouse & Coolstore Limited. Centrepac 

Packhouse & Coolstore Limited is a private company 

of which Mr Goodwin is a director and shareholder. 

The lease rental has been determined by negotiation 

between the parties; Mr Goodwin took no part in the 

negotiations or board meetings concerning this lease. 


$406,578 (2006: $360,514) for occupancy costs were 

made by Apata Limited to Centrepac Packhouse & 

Coolstore Limited. 

Note 14 : Capital commitments 

The capital commitments at 31 March 2007 included 

$374,405 (2006: $751,609) which related to stage three of 

the three-stage non-pro rata share buy back arrangement 

entered into during 2005, whereby the Company 

undertook to purchase shares from shareholders over a 

two-year period. The second stage of the arrangement 

took place during the year, when 221,894 shares were 

acquired and held as Treasury Stock. The Company 

is committed to purchasing a further 220,238 shares 

There are no contingent liabilities as at 31 March 2007 

(2006: Nil). 

Tetley Coolstores Limited 

Apata Limited leases the building at Katikati from Tetley 

Coolstores Limited. Tetley Coolstores Limited is a 

private company of which Mr McGreevy is a director and 

shareholder. The lease rental has been determined by 

negotiation between parties; Mr McGreevy took no part in 

the negotiations or board meetings concerning this lease. 


to $190,733 (2006: $171,324) for occupancy costs were 

made by Apata Limited to Tetley Coolstores Limited. 

In addition, as a shareholder in Apata Limited, Tetley 

Coolstores Limited received net cash dividends 

amounting to $56,670 (2006: $29,248). 

Apata Suppliers Entity Limited 

Apata Suppliers Entity Limited (ASEL) is a separate 

legal entity with directors elected by Apata growers and 

appointed by the Group and other independent coolstore 

facilities. This entity does not form part of the Group. 

During the year to 31 March 2007, the Group received 

$14,224,834 (2006: $19,688,220) from ASEL in respect 

of post-harvest services and fruit proceeds, and made 

payments to ASEL of $975,491 (2006: $150,107) in respect 

of post-harvest services. 

2007 2007 2006 2006 


Estimated capital expenditure contracted 

for at balance date but not provided for 1,637,919 1,637,919 751,609 751,609 

Note 15 : Contingent liabilities 

on or before 19 December 2007. The share price is 

fi xed at $1.70, being the prevailing price at the time of 

establishing the arrangement. 

The remainder of the balance at 31 March 2007, 

$1,263,514, represents expenditure to complete the 

coolstore and site development contracts underway as 

at 31 March 2007. The coolstore became available for 

operations in April 2007. 

Note 16 : Lease commitments 

The Group is committed to the following leases: 

2007 2007 2006 2006 


Less than 1 year 1,046,449 1,046,449 850,722 850,722 

Less than 2 years 1,027,184 1,027,184 770,095 770,095 

From 3 – 5 years 1,191,180 1,191,180 1,607,274 1,607,274 

5 years and over 59,000 59,000 184,197 184,197 

Note 17 : Financial instruments 

Credit risk 

Financial instruments which potentially subject the 

Group to credit risk principally consist of bank balances 

and accounts receivable. The Group performs credit 

evaluations on all customers requiring credit and 

generally does not require collateral. The Group places 

its cash with high credit quality fi nancial institutions. 

Maximum exposures to credit risk at balance date are: 

Effective 

interest rate 2007 2007 2006 2006 

31.3.2007 Group Company Group Company 

Bank 4.75% 1,029,303 427,707 260,126 175,924 

Short term deposits 5.50% 6,414 6,414 599,235 599,235 

Accounts receivable - 689,109 1,093,085 1,861,800 1,850,651 

The above maximum exposures are net of any recognised 

provision for losses on these fi nancial statements. No 

collateral is held on the above amounts. 

Concentration of credit risk 

Financial instruments which potentially subject the 

Group to credit risk principally consist of bank balances 

and accounts receivable. Except for amounts owing 

from related parties (as noted in Note 13), there are no 

signifi cant concentrations of credit risk. 

Fair values 

The carrying amount is considered to be the fair value for 

each of the fi nancial instruments. 

Foreign exchange contracts 

The Group has no foreign exchange contracts at 31 

March 2007. 

Credit facilities 

The Group has a total bank overdraft facility of $2,000,000 

(see Note 5). 

Liquidity risk 

Work in progress relates to expenditure on leased 

kiwifruit orchard crops which will be harvested and the 

revenue received in the next fi nancial year. Crop failure 

will impact on trading revenue and the Group’s liquidity. 

Interest rate risk 

Interest rate risk is the risk that the value of the Group’s 

assets and liabilities will fl uctuate due to changes in 

market interest rates. The Group is exposed to interest 

rate risk primarily through its cash balances, bank 

overdraft and bank borrowings. 


33



34 

Note 18 : Adoption of International Financial Reporting Standards 

In December 2002 the New Zealand Accounting 

Standards Review Board announced that New Zealand 

International Financial Reporting Standards (“NZ IFRS”) 

will apply to all New Zealand reporting entities for the 

periods commencing on or after 1 January 2007. The 

Group plans to present fi nancial statements under NZ 

IFRS for the year ended 31 March 2008 (i.e. adoption 

date of 1 April 2007). 

On adoption, the Group will be required to restate its 

comparative fi nancial statements to amounts refl ecting 

the application of NZ IFRS to that comparative period. 

Most adjustments required on transition to NZ IFRS will 

be made retrospectively against retained earnings as at 

1 April 2006 (i.e., the commencement of the comparative 

period ending 31 March 2007). 

The Group has commenced a project to assess the key 

differences in accounting policies between NZ IFRS and 

current NZ Generally Accepted Accounting Practice 

(“GAAP”), and identify where policy changes will be 

required. The project team reports to the audit and risk 

committee, and has consulted with external specialists. 

Set out on the right are the areas where there may be 

material differences in accounting policy and signifi cant 

transitional differences to the opening balance sheet as 

at 1 April 2006. 

The Company entered into a new loan agreement with 

ANZ National Bank Limited for a principal amount of 

$3,700,000 dated 15 May 2007. The loan term expires 

on 15 May 2012. 

On 17 May 2007 the Government announced a reduction 

in the tax rate for Companies, from 33% down to 30%, 

enacted in the Taxation (Kiwisaver and Company Tax 

Rate Amendments) Act 2007. The reduced rate will be 

effective for the Group from the fi nancial year beginning 

1 April 2008. The fi nancial effects of the change in tax 

rate have not been brought to account in the fi nancial 

statements for the year ended 31 March 2007. Had the 

i) Land and Buildings 

Under current policy, land and buildings are stated 

at cost less depreciation (see Notes 1 and 8). On 

transition to NZ IFRS, the Group may choose to 

continue this policy or to restate these assets to 

fair value at the date of transition. Such a change 

in approach will result in material adjustments to the 

company’s opening balance sheet. The exact impact 

is currently being assessed to determine the most 

appropriate accounting policy for the Group. 

ii) Taxation 

Current accounting policy recognises deferred tax 

balances arising from accounting and tax differences 

recognised in the income statement. Under NZ 

IFRS deferred tax is calculated using a balance 

sheet approach with almost all differences between 

accounting and tax values of balance sheet items 

giving rise to deferred tax balances. This change 

in approach will potentially result in a change in the 

Group’s deferred tax balances. The exact impact will 

be able to be quantifi ed once the decision has been 

made regarding the accounting policy on land and 

buildings. 

Although the adjustments disclosed in this note are based 

on management’s best estimate of expected standards 

and interpretations, and current facts and circumstance, 

these may change. Therefore, until the Group prepares 

its fi rst full NZ IFRS fi nancial statements, it is possible 

that the actual impact may vary from the information 

presented and that variation may be material. 

Note 19 : Events occurring after balance date - year ended 31 March 2007 

fi nancial effect of the change in tax rate been recognised 

at 31 March 2007, there would have been a reduction 

in the balances of deferred tax assets by $4,496 and 

deferred tax liabilities by $10,961 and a decrease in 

income tax expense by $6,465. 

On 28 June 2007 the Directors of the Company declared 

their intention to pay a fi nal cash dividend of 8.7 cents per 

share (2006: 7.5 cents per share), to be paid in September 

2007. As the intention was declared after balance date, 

the fi nancial effect has not been recognised in the 

fi nancial statements. 

Auditors’ report 

Audit report 

To the shareholders of Apata Limited 

We have audited the fi nancial statements on pages 21 to 34. The fi nancial statements provide 

information about the past fi nancial performance and fi nancial position of the company and group 

as at 31 March 2007. This information is stated in accordance with the accounting policies set out on 

pages 24 to 25. 

Directors’ responsibilities 

The Directors are responsible for the preparation of fi nancial statements which give a true and fair 

view of the fi nancial position of the company and group as at 31 March 2007 and the results of their 

operations and cash fl ows for the year ended on that date. 

Auditors’ responsibilities 

It is our responsibility to express an independent opinion on the fi nancial statements presented by 

the Directors and report our opinion to you. 

Basis of opinion 

An audit includes examining, on a test basis, evidence relevant to the amounts and disclosures in the 

fi nancial statements. It also includes assessing: 

the signifi cant estimates and judgements made by the Directors in the preparation of the fi nancial 

statements; 

whether the accounting policies are appropriate to the company’s and group’s circumstances, 

consistently applied and adequately disclosed. 

We conducted our audit in accordance with New Zealand Auditing Standards. We planned and 

performed our audit so as to obtain all the information and explanations which we considered 

necessary in order to provide us with suffi cient evidence to obtain reasonable assurance that the 

fi nancial statements are free from material misstatements, whether caused by fraud or error. In 

forming our opinion we also evaluated the overall adequacy of the presentation of information in the 

fi nancial statements. 

Other than in our capacity as auditors we have no relationship with or interests in the company. 

Unqualifi ed opinion 

We have obtained all the information and explanations we have required. 

In our opinion: 

proper accounting records have been kept by the company as far as appears from our examination 

of those records; 

the fi nancial statements on pages 21 to 34: 

– comply with New Zealand generally accepted accounting practice; 

– give a true and fair view of the fi nancial position of the company and group as at 31 March 

2007 and the results of their operations and cash fl ows for the year ended on that date. 

Our audit was completed on 12 July 2007 and our unqualifi ed opinion is expressed as at that date. 

Tauranga 


35


36 

Statutory information - Year ended 31 March 2007 

a : Directors’ remuneration 

The following amounts of remuneration were authorised: 

b : Directors’ indemnity insurance 

The Group has arranged directors and offi cers liability 

insurance cover in respect of Apata Limited and Apata 

Suppliers Limited for $2,500,000 with QBE Insurance 

International Limited at a premium of $3,200 per annum. 

The directors and offi cers portion of the premium is $320. 

c : Use of Group information 

During the year the Board received no notices from 

directors of the Group requesting to use Group 

information received in their capacity as directors that 

would not otherwise have been available to them. 

d : Directors’ interests in transactions 

Directors and their associated interests enter packaging, 

packing and/or coolstorage contracts with the Group on 

normal commercial terms and conditions in the ordinary 

course of business activities with the Group. There were 

no other material entries made in the interests register 

during the year. 

2007 2007 2006 2006 


David Goodwin 32,000 32,000 14,750 14,750 

Max McGreevy 16,500 16,500 9,250 9,250 

Peter Mayston 14,750 14,750 14,750 14,750 


Paul O’Brien 15,000 15,000 9,500 9,500 

Peter Rogers (Finn & Partners) 16,250 16,250 9,500 9,500 

109,250 109,250 67,000 67,000 

The Group has provided no other benefi ts to a director 

for services as a director. 

The Group has made no loans to a director nor has the 

Group guaranteed any debts incurred by a director. 

e : Directors in offi ce as at 31 March 2007 

D J Goodwin 

– Director of Apata Limited 

– Director of Apata Suppliers Limited 

– Director of Apata Suppliers Entity Limited 

– Trustee of Apata Suppliers Entity Limited Grower / 

Supplier Trust 

– Director of Centrepac Packhouse and Coolstore Ltd 

– Director and shareholder of Harvestpac Packhouse 

and Coolstore Limited 

– Director of Abbey Holdings Limited 

– Director of Chateau Nominees Limited 

– Director of Kiwifruit Supply New Zealand Limited 

– Director of SouthLink Limited 

– Trustee of Harvest Ridge Trust Orchard 

– Trustee of Charisma Orchard 

M R McGreevy 

– Director and shareholder of Apata Limited 





– Partner of MR & CL McGreevy (trading as 

Claremont Services) 

– Partner of Claremont Contractors Partnership 

– Director and shareholder of Sheoke Orchards Ltd 

– Director and shareholder of Tetley Coolstores Ltd 

– Director and shareholder of Claremont Services Ltd 

– Director and shareholder of Athenberry Holdings Ltd 

– Director and shareholder of Fern Garden Limited 

PJC Rogers 



– Director of Arrowmight International Limited 

– Director of Contours New Zealand Limited 

– Director of Contours Property New Zealand Limited 

– Director of Early Education Waikato Limited 

– Director of Eliminator Holdings Limited 

– Director of Fernwater Investments Limited 

– Director of Finch Contracting Limited 

– Director of Finn & Partners Trustees Limited 

– Director of Finn & Partners Limited 

– Partner of Finn & Partners, Chartered Accountants 

– Director of Glenview International Hotel and 

Conference Centre Limited 

– Director of Great Oaks Holding Company Limited 

– Director of Lifetime Marketing NZ Limited 

– Director of P.R.A Investments Limited 

– Director of Pemberton Construction Limited 

– Director of Tanlaw Corporation Limited 

– Director of St Paul’s Collegiate School Forest 

[numbers 1 to 8] Limited 

– Trustee of St Paul’s Collegiate School 

– Director of Honikiwi Forest Limited 

– Director of Lucknow Wines Limited 

– Member of Waikato University Finance Committee 

– Trustee of Aotearoa Institute 

P M Mayston 



– Director and shareholder of Bruntwood Farms Ltd 

– Trustee of Bruntwood Investment Trust 

– Trustee of Bruntwood Trust 

– Trustee of PM Mayston Family Trust 

– Director and shareholder of Maniaroa Properties Ltd 

– Delegate of NZ Employers Association – Orchard 

and Vineyard 

M Muller 



– Director of Avalon Incorporated 

– Trustee of Equality Property Trust Incorporated 

– Director and shareholder of Muller & Associates Ltd 

– Trustee of Michael and Patricia Muller Family Trust 

P R O’Brien 

– Director and shareholder of Apata Limited 





– Director and shareholder of PR & PJ O’Brien Limited 

– Trustee of PR & PJ O’Brien Family Trust 

– Partner of PR & PJ O’Brien Partnership 

– Partner of PR & CI & BJ O’Brien Partnership 

f : Share dealings - Company 

Shares held Shares held 

31.3.2007 31.3.2006 

David Goodwin (benefi cially held) 258,209 258,209 

Max McGreevy (benefi cially held) 509,425 509,425 

Peter Mayston (benefi cially held) 554,464 554,464 

Michael Muller (benefi cially held) 395,530 428,863 

Paul O’Brien 25,000 14,974 

Paul O’Brien jointly purchased a further 10,026 shares 

during the year. Paul O’Brien also has an interest in 

the 13,000 shares owned by P, C & B O’Brien, of which 

3,000 were purchased during the year. The Michael and 

Patricia Muller Family Trust, in which Michael Muller has 

a benefi cial interest, sold 33,333 shares during the course 

of the year. 

g : Employee remuneration 

Remuneration and other benefi ts of $100,000 or more 

received by employees or former employees in their 

capacity as employees during the fi nancial year ended 

31 March 2007 were: 

Number of 

Apata Limited employees 

$160,000-$170,000 1 

$120,000-$130,000 1 

$100,000-$110,000 1 

h : Auditors’ remuneration 

During the year $24,007 has been paid or accrued to 

KPMG as the Group’s auditor (2006: $31,902). 

i : Donations 

The Group did not make any donations during the year 

ended 31 March 2007. 


37


38 

Securities Act Exemption Notice information 

Apata Limited (“the Company” or “the issuer”) 

has been granted a Securities Act (Apata Limited) 

Exemption Notice 2006 by the Securities Commission 

(“the Exemption Notice”). The Exemption Notice was 

gazetted on 27 July 2006 and expires on 27 July 2011. 

The Exemption Notice grants the Company exemptions, 

subject to conditions, from sections 37A(1)(c) and 54 

of the Securities Act 1978 and clauses 4 to 9, 11 to 20, 

22 to 38, and 40 to 42 of Schedule 1 of the Securities 

Regulations 1983 (“the Regulations”). 

The exemption in clause 5(c) of the Exemption Notice is 

subject to the condition that the information required by 

clauses 4, 5A, 6, 7, 12 to 14, 17, 18, 20, and 42 of Schedule 

1 of the Regulations is contained in every annual report 

of the Company. The following information is provided 

in accordance with the Exemption Notice: 

Principal subsidiaries of issuer 

No subsidiary of the issuer has total tangible assets that 

exceed 5 percent of the amount of the total tangible 

assets of the issuing group. 

Restrictions on directors’ powers 

There are no modifi cations, exceptions or limitations on 

the powers of the board of the Company imposed by 

the constitution of the Company in force at 12 July 2007, 

except as provided in the Companies Act 1993, which 

requires the approval of shareholders to various matters 

including major transactions. 

Substantial equity security holders of issuer 

The ten largest holdings of equity securities of the issuer 

as at 25 June 2007 are: 

Name of substantial equity security holder Holding 

1. Murray Bindon, Peter Martyn Mayston 

& Jennifer Mayston 554,464 

2. Mike Muller, Patricia Muller & 

John Donald 395,530 

3. Tetley Coolstores Limited 365,612 

4. Harvestpac Packhouse & Coolstore 

Limited 238,209 

5. Brian Roland Earp, Jacqueline Lessel 

Earp, Roland Woodroffe Earp & 

Anthony Charles Prentice 196,044 

6. Melvyn Albert Walker, Delwyn Sonya 

Walker & Kevin Garty 188,086 

7. Melva Ethal Allan & William 

Beaumont Holland 153,030 

8. Stuart Barry Weston, Rachel Weston 

& Fenton McFadden Trustee Company 

Limited 147,059 

9. Max Richard McGreevy & Catherine 

McGreevy 143,813 

10. Kenneth Shaw 125,000 

None of the substantial equity security holders mentioned 

above undertake any liability in respect of any securities 

that may be offered by the Company. 

Description of activities of issuing group 

The Company, one of New Zealand’s leading post 

harvest kiwifruit and avocado facilities, has been 

engaged in the following activities during the 5 years 

preceding 12 July 2007: 

– Coolstore of kiwifruit (conventional, medium term 

and controlled atmosphere) 

– Coolstorage of avocados 

– Packing of kiwifruit and avocados 

– Conditioning and pre-ripening of kiwifruit and avocados 

– Laboratory services – pest management, kiwistart, 

dry matter, botrytis prediction 

– Sales of local market and class II export kiwifruit and 

avocados 

– Grower services 

– Pre-packing 

– Leasing and management of kiwifruit orchards 

The other member of the issuing group (Apata Suppliers 

Limited) has been engaged in the following activities 

during the 5 years preceding 12 July 2007: 

– Logistical services for export kiwifruit 

Details regarding the principal fi xed assets held by 

members of the issuing group: 

Fixed Asset Use of fi xed asset Owned/ 

leased 

Freehold land at 

Apata Packing & Coolstore Owned 

Buildings 

Apata Packing & Coolstore Owned 

Pyes Pa (Centrepac) Packing & Coolstore Leased 

Whangarei Packing & Coolstore Leased 

Katikati (Tetley) Packing & Coolstore Leased 

Forklifts & vehicles 

Truck (Apata) Packing & Coolstore Leased 

Utility vehicles (6) 

& car Packing & Coolstore Leased 

All others Packing & Coolstore Owned 

At all locations 

Plant and equipment Packing & Coolstore Owned 

Offi ce equipment 

and furniture Packing & Coolstore Owned 

Securities paid up otherwise than in cash 

Within the fi ve years preceding 12 July 2007, no securities 

have been paid for otherwise than in cash. 

Options to subscribe for securities of issuing group 

No options have been granted or are proposed to be 

granted to any person. 

Appointment and retirement of directors 

A director may be appointed or removed from offi ce by 

an ordinary resolution. 

At each Annual Meeting of the Company, one third of the 

directors for the time being, or if their number is not three 

or a multiple of three, then the nearest one third, shall 

retire from offi ce. The directors to retire in every year shall 

be those who have been longest in offi ce since their last 

election, but as between persons who became directors 

on the same day, those to retire shall (unless they otherwise 

agree among themselves) be determined by lot. 

A retiring director shall be eligible for re-election. 

The board of directors may by resolution from time to 

time appoint and remove one additional person as 

a director (“the additional director”). The additional 

director will hold offi ce for such term as is determined by 

the board at the time of appointment, up to a maximum 

term of three years. If no particular term is determined 

by the board, the additional director holds offi ce for a 

term of one year. 

There are no rules relating to retirement age for directors. 

Every director may, by notice given in writing to the 

Company, appoint any persons (including any other 

director) to act as an alternate director in the director’s 

place, either generally or in respect of a specifi ed 

meeting or meetings during the director’s absence or 

inability to act as a director. Every director may, at the 

director’s discretion by notice in writing to the Company, 

remove that director’s alternate director. 

An alternate director has the right to vote in the election 

of other directors of the issuer. 

Material contracts 

Material contracts that have been entered into by any 

member of the issuing group at any time in the two years 

preceding 12 July 2007 are: 

ANZ National Bank Limited Loan Agreement for a 

principal amount of $3,700,000 dated 15 May 2007. 

Pending proceedings 

There are no legal proceedings that are pending at 12 

July 2007 that may have a material adverse effect on the 

issuing group. 

Restrictions on issuing group 

Apata Limited must not make any distribution, other 

than a distribution out of the business profi ts which is 

commercially prudent at the time it is made. Such 

restriction results from an ANZ National Bank Limited 

General Security Agreement dated 27 May 2004. 

There are no restrictions on the ability of any other member 

of the issuing group to make a distribution being restrictions 

that result from any undertaking given or contract or deed 

entered into, by the issuer or any of its subsidiaries. 

There are no restrictions on the ability of any member of 

the issuing group to borrow being restrictions that result 

from any undertaking given or contract or deed entered 

into, by the issuer or any of its subsidiaries. 

Auditors’ report 

A copy of the auditors’ report on the fi nancial statements for 

the year ended 31 March 2007 from KPMG is attached. 


39


40 

Company details 

Company name Apata Limited 

Company number 205019 

Date of incorporation 22 August 1983 

Nature of business Packhouse and Coolstore operators 

Directors David John Goodwin 

Peter Martyn Mayston 

Michael Muller 

Max Richard McGreevy 

Paul Rodney O’Brien 

Executive Todd Muller, Chief Executive Offi cer 

Peter Carter, Commercial Manager 

Marilyn Haywood, Operations Manager 

Phil Reed, Client Services Manager 

Colin Reilly, Chief Financial Offi cer 

Dinah Rutherford, Executive Assistant 

Tim Torr, Business Development Manager 

Auditors KPMG 

Tauranga 

Bankers ANZ National Bank Limited 

Tauranga 

Solicitors Sharp Tudhope 

Tauranga 

Registered offi ce Staples Rodway 

132 First Avenue 

Tauranga 

Number of shares on issue 4,505,484 ordinary shares. 

Of these, 45,167 were accounted for under the Treasury Stock method at 

31 March 2007, and have since been placed with shareholders. 

Distribution of Shareholding as at 5 June 2007 

No. of % of Average 

shareholders Shares held shareholders % of shares holding 

Up to 1,999 shares 26 35,405 9.8% 0.8% 1,362 

2,000 to 9,999 shares 179 766,152 67.5% 17.0% 4,280 

10,000 to 24,999 shares 35 511,746 13.2% 11.4% 14,621 

25,000 to 99,999 shares 14 585,334 5.3% 13.0% 41,810 

100,000 shares or more 11 2,606,847 4.2% 57.9% 236,986 

265 4,505,484 100.0% 100.0% 17,002 


41

apata 

partners for growth 

Apata head office 

Turntable Hill Road, RD 2 

Katikati 3178 

p : (07) 552 0911 

f : (07) 552 0666 

Centrepac 

83 Pyes Pa Road 

Tauranga 3112 

p : (07) 543 1211 

f : (07) 543 0096 

Northland 

37 Southend Avenue 

Otaika, Whangarei 0110 

p : (09) 430 8003 

f : (09) 430 8006 

e : reception@apata.co.nz 

w : www.apata.co.nz

annual report - Apata

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