apr-11.pdf (2.07 MB) - Crown Ownership Monitoring Unit

OperationsACP is New Zealand’s principalmanufacturer of 1080-based products.These have historically provided thebulk of sales for the company. Overrecent years, one of ACP’s objectiveshas been to diversify its product rangeand markets to reduce dependencyon this product. Consistent withthis, the company’s dependence on1080-related products was below 50%for the 2010/11 financial year.During the year, ACP faced a flatdomestic market with lower sales tomajor customers such as the AnimalHealth Board and Department ofConservation. Despite this, ACP wasable to increase its revenues overallthrough an uplift in export activity.ACP continues to maintain buffer stock representing approximately fouryears of national usage of 1080, to protect both the national interestsand the interests of the company. The buffer stock is based on thetimeframe estimated to commission a plant to manufacture 1080 powder inNew Zealand, should ACP’s American-based supplier cease production.Financial performanceACP had a very successful year and achieved a record for its financialperformance. This is an outstanding result for the company. Operatingrevenue of $7.1 million was 14.5% ahead of the previous year’s revenueof $6.2 million as a result of an increase in export orders. The increase inrevenue flowed through to the bottom line, with ACP reporting NPAT forthe year of $1.6 million, significantly ahead of the previous year’s NPAT of$700,000.Major investmentsACP made no significantinvestments during 2010/11.Non-financial performanceFor 2010/11, there were noaccidents to report. ACP hasconducted regular medical checksto monitor and maintain staffhealth.Ninety-eight percent of customersrated ACP’s products and servicesas being good or excellent.Performance against planACP’s revenue for 2010/11 of $7.1 million was 18.3% ahead of budget, as aresult of an unanticipated uplift in international sales, in particular a large orderto Macquarie Island (which is south of Australia). NPAT of $1.6 million wassignificantly ahead of the budgeted NPAT of $706,000.DividendsACP paid an interim dividend of $400,000 during the year and announceda final dividend of $1 million in respect of the 2010/11 financial year at itsAnnual General Meeting in November 2011.page | 69