BAY OF PLENTY BUSINESS NEWS JANUARY 2020

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From mid-2016 Bay of Plenty businesses have a new voice, Bay of Plenty Business News. This new publication reflects the region’s growth and importance as part of the wider central North Island economy.

Bay of plenty

JANUARY 2020 VOLUME 4: ISSUE 1 WWW.BOPBUSINESSNEWS.CO.NZ FACEBOOK.COM/BOPBUSINESSNEWS

OPTIMISTIC

OUTLOOK

FOR THE BAY’S

ECONOMY

IN 2020

The Bay of Plenty economy is expected to

remain strong for the coming year with solid

underlying growth and good prospects for

2020, say local business leaders.

Port a key driver of the Bay’s continuing economic success.

Photo/Port of Tauranga.

By DAVID PORTER

“The regional economy is

still very strong and sentiment

appears to be really

good,” said Nigel Tutt, chief

executive, Priority One.

Tauranga Chamber of

Commerce chief executive

Nigel Tutt

Matt Cowley added that businesses

in the Bay were cautiously

optimistic about 2020.

But there are two main

factors that are likely to affect

what sort of year we have.

The first is, of course, external

issues that are largely beyond

New Zealand’s control.

Recent years have been notable

for a greater degree of

international political and

economic volatility than we

have seen since the world

emerged from the Global

Financial Crisis.

The regional

economy is still

very strong and

sentiment appears

to be really good.”

- Nigel Tutt,

Priority One.

The erratic US approach

to trade by President Donald

Trump’s government, the

on-off trade wars with various

major partners, and Britain’s

protracted Brexit problems,

as well as political changes

and unrest in regions from

South America to the Middle

East have all played a part in

heightening instability.

Pre-election impact

The other major issue for

New Zealand business is the

fact that 2020 is an election

year. There is a positive side

to that. The New Zealand

government, which has been

regularly accused of incompetence

during its term - think

Kiwibuild - and of a lack of

coherence and coordination

between the three coalition

parties, is likely to go out of

its way to prime the economic

pump in 2020.

Continued on page 5

IMPACT INVESTING

Purpose Capital raises

$20 million.

P9

PORT OF TAURANGA

Chairman David Pilkington

wins top national award.

P15

NETWORKING

National Business Network

event lined up for 2020.

P18


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BAY OF PLENTY BUSINESS NEWS January 2020

3

Business buyer –

is your next adventure on this page?

Installation Service & Repair

$350,000

Importing and Retail

$925,000

Tauranga

• Well-established & steady business

• Four Income streams

• Qualified staff in place

• Six figure income

• Servicing the Bay of Plenty region

linkbusiness.co.nz/BOP00052

Carron Chote 027 289 6658

carron.chote@linkbusiness.co.nz

Tauranga

• Long and proven track record

• Turnover of $1,704,000 in 2019

• Cash surplus of $204,000

• Superb high profile location

• Un-optimised opportunity to grow

linkbusiness.co.nz/BOP00075

Nols Bertram 027 238 1450

nols.bertram@linkbusiness.co.nz

Mobile Hospitality Industry

$130,000

Niche Building Industry

$115,000

Thriving Import Business $1,400,000

Bay of Plenty

• Good earner for flexible part-time hours

• Sign written vans and food trailer

• Bookings in place for the new year

• 90% of turnover earned from private

clients

linkbusiness.co.nz/BOP00091

Camella Anselmi 0274 454 121

camella.anselmi@linkbusiness.co.nz

Bay of Plenty

• Niche product, unique profile, designed

by current owner

• $60,000 return to one working owner

• Part-time approx 20 hours per week

• Supplies numerous building companies

linkbusiness.co.nz/BOP00090

Steve Catley 021 341 117

steve.catley@linkbusiness.co.nz

Tauranga

• Expected $500,000+ net surplus to end

March 2020

• Includes overseas travel to work with

manufacturers

• Forward orders for the next 4 months

linkbusiness.co.nz/BOP00057

Camella Anselmi 0274 454 121

camella.anselmi@linkbusiness.co.nz

Iconic Tauranga Bookstore

$145,000

Plus stock

Tauranga

• Huge range of books and magazines -

The one stop shop!

• Loyal, long serving, knowledgeable staff

• Reasonable rent of $38k per year

• Featured in Top10 CBD Business awards

linkbusiness.co.nz/BOP00077

Peter Redward 0274 920 453

peter.redward@linkbusiness.co.nz

Sensational Lifestyle Business

$455,000

Plus stock at $10k to $20k

Bay of Plenty

• Lifestyle friendly with no fixed hours of

operation

• Fantastic plant and equipment included

• Full training offered

• Growing sales

linkbusiness.co.nz/BOP00076

Peter Redward 0274 920 453

peter.redward@linkbusiness.co.nz

Busy Automotive Workshop $195,000

Tauranga

• Service and repairs on range of vehicles,

including farm & horticultural machinery

• Approx.$120,000 to one working owner

• Operating 5 days a week

• Staff in place

linkbusiness.co.nz/BOP00087

Steve Catley 021 341 117

steve.catley@linkbusiness.co.nz

Rural Delivery Run Te Puke

$ 299,000

Western Bay of Plenty

• Service to approx 1500+ delivery points

• Te Puke rural run for last 15 years

• 2019 turnover was over $240K

• Experienced growth due to online

shopping deliveries

linkbusiness.co.nz/BOP00071

Grant Jacobson 0274 540 432

grant.jacobson@linkbusiness.co.nz

$16,000 per week Turnover

$145,000

Plus stock approx $45K

Bay of Plenty

• Turnover increasing, currently approx.

$16,000 per week

• Big shop with very reasonable rent -

$31,000 per year

• Very tidy and nicely presented

linkbusiness.co.nz/BOP00081

Peter Redward 0274 920 453

peter.redward@linkbusiness.co.nz

Licensed Asian Restaurant $160,000

Tauranga

• Open 6 days per week

• Outside dining area with harbour views

• Great “Trip Advisor” reviews of 4.5 stars

• Experienced chefs who are keen to stay

• Fully licensed and BYO wine

linkbusiness.co.nz/BOP00074

Peter Redward 0274 920 453

peter.redward@linkbusiness.co.nz

Superette Plus Fruit & Veges!

$190,000

Plus stock at cost

Bay of Plenty

• Turnover exceeds $23,000 per week

• Lotto approval pending - huge boost to

foot traffic

• Goods include superette grocery lines

plus fresh fruit and veges

linkbusiness.co.nz/BOP00082

Peter Redward 0274 920 453

peter.redward@linkbusiness.co.nz

Monday To Friday Café! $149,000

Tauranga

• Only trades Monday - Friday!

• Profits are there & growing

• Staff are all in place

• Coffee usage is approx. 15 kgs per week

• Strong lease approx $490 per week

linkbusiness.co.nz/BOP00072

Theresa Eagle 021 289 0949

theresa.eagle@linkbusiness.co.nz

195 Maungatapu Road Freehold

$1,950,000

Tauranga

• 1701sqm of freehold land

• Well-appointed premises

• Large forecourt and modern showroom/

shop

• New 10 year lease

linkbusiness.co.nz/BPW01099

Mike Fraser 021 932 633

mike.fraser@linkbusiness.co.nz

Asbestos Removal $630,000

Semi Managed Distribution $1,050,000

Audio Visual Hire Business $300,000

Rotorua

Very strong workload going

forward, approximately $300k

work of sales. The client

base covers government

departments, manufacturing

companies, warehouses and

factories, regional hospitals,

and residential properties.

Rare Opportunity

• Required certification

and registration in

place

• Five full time

experienced staff

• Freehold also

available for purchase

linkbusiness.co.nz/BPW00895

Mike Chote 027 555 1176

mike.chote@linkbusiness.co.nz

NZ’s most awarded business brokerage

Bay of Plenty

Semi-managed with owner

working flexible hours and

limited input to the business.

Knowledgeable staff with

excellent systems in place.

Showing a large increase in

sales over the last 12 months

8 OFFICES NATIONWIDE. 26 FOURTH AVE, TAURANGA

Rare Opportunity

• Net profit of $373,751

for the last year

• Smart buying, showing

an excellent return on

investment.

• No industry skills

required to manage

this business

linkbusiness.co.nz/BOP00083

Mike Fraser 021 932 633

mike.fraser@linkbusiness.co.nz

Bay of Plenty

This business could easily

be home based and run

from a double garage sized

space. The work entails

hiring, setting up, and

sometimes operating, audio

visual equipment for private

functions and corporate

events, including some of the

biggest sporting events in this

district

Connecting business

buyers & sellers since 1996

Rare Opportunity

• Great quality and high

value equipment

• Extensive training and

ongoing support will

be provided

• Excellent income to a

full-time owner

linkbusiness.co.nz/BOP00079

Lisa Lloyd 027 685 4556

lisa.lloyd@linkbusiness.co.nz

0800 225 999

LINKBUSINESS.CO.NZ

Bay Business Brokers Ltd - Licensed (REAA08)


4 BAY OF PLENTY BUSINESS NEWS January 2020

CONTACT

INFORMATION

Bay of plenty

PUBLISHER

Alan Neben

Ph: (07) 838 1333

Mob: 021 733 536

Email: alan@bopbusinessnews.co.nz

www.bopbusinessnews.co.nz

EDITOR

David Porter

Mob: 021 884 858

Email: david@bopbusinessnews.co.nz

STUDIO MANAGER

Tania Hogg

Ph: (07) 838 1333

Email: tania@dpmedia.co.nz

GRAPHIC DESIGNER

Olivia McGovern

Ph: (07) 838 1333

Email: olivia@dpmedia.co.nz

ADVERTISING

INQUIRIES

BUSINESS DIRECTOR

Pete Wales

Mob: 022 495 9248

Email: pete@bopbusinessnews.co.nz

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Bay of Plenty Business News has

a circulation of 8000, distributed

throughout Bay of Plenty between

Waihi and Opotiki including

Rotorua and Taupo, and to a

subscription base.

www.bopbusinessnews.co.nz

Bay of Plenty Business Publications

210/424 Maunganui Road,

Mount Maunganui, 3116

Bay of Plenty Business

Publications specialises in

business publishing, advertising,

design and print media services.

From the editor

The Bay of Plenty economy

is expected to

remain strong for the

coming year with solid underlying

growth and good prospects

for 2020, say local business

leaders. As reported in

our cover story this month, the

regional economy is still very

strong and sentiment appears

to be really good, with businesses

cautiously optimistic

about 2020.

But there are two main factors

that are likely to affect

what sort of year we have.

The first is, of course, external

issues that are largely beyond

New Zealand’s control. Recent

years have been notable for a

greater degree of international

political and economic volatility

than we have seen since the

world emerged from the Global

Financial Crisis.

The erratic US approach

to trade by President Donald

Trump’s government, the on-off

trade wars with various major

partners, and Britain’s protracted

Brexit problems, as well

as political changes and unrest

in regions from South America

to the Middle East have all

played a part in heightening

instability.

The other major issue for

New Zealand business is the

fact that 2020 is an election

year. There is a positive side to

that. The New Zealand government,

which has been regularly

accused of incompetence during

its term - think Kiwibuild - and

of a lack of coherence and

coordination between the three

coalition parties, is likely to

go out of its way to prime the

economic pump in 2020.

The most obvious indica-

tion of a change in attitude has

been Finance Minister Grant

Robertson’s recent decision to

take the advice of a range of

economists and signal that he

was willing to borrow cheaply

and spend big on infrastructure

in the coming years. We should

not underestimate what a major

change of policy this reflects for

Labour. Robertson announced

in December that the government

would take advantage of

historically low global interest

rates - and New Zealand’s

generally strong economy - to

undertake “significant” spending

on infrastructure.

Meanwhile, the Bay of

Plenty-headquartered Purpose

Capital Impact Fund (PCIF) has

achieved its first close target of

raising $20 million and is now

ready to begin investing in projects

nationwide. The fund was

launched in March 2019 by Bill

Murphy, founder of early stage

investment group Enterprise

Angels. (See our Bay of Plenty

Business News cover story,

May-June 2019).

The fund is now officially

active, but will remain open

for further investment and is

aiming to reach $30 million.

PCIF has already attracted

several major investors, including

the Tindall Foundation,

K1W1, WEL Energy Trust,

BayTrust, TECT and numerous

private individuals and family

trusts. K1W1’s Robbie Tindall

said his family’s fund had

always been about making a

difference in New Zealand.

“Investing through Purpose

Capital Impact Fund is another

way for us to broaden and

deepen our impact throughout

the country.”

David Porter

The new Bay fund reflects

the increasing focus globally on

Impact Investing, where corporate

foundation heavyweights

and high net-worth individuals

are combining forces with

the philanthropic sector and

family trusts to invest in innovative

solutions to social and

environment problems.

And David Pilkington, chair

of key local business driver

the Port of Tauranga, has been

named Chairperson of the Year

in the Deloitte Top 200 Business

Awards.

Deloitte Top 200 judge

Cathy Quinn said that any entity

Pilkington chaired had performed

financially and grown

consistently during his tenure.

Pilkington joined the Port of

Tauranga Board in July 2005

and has been chair since 2013.

Since then, Port of Tauranga

has successfully completed its

strategy to become “big ship

capable” and is now by far New

Zealand’s largest port. The company’s

market capitalisation has

more than doubled during his

tenure to more than $4.6 billion.

His win made it a hat trick for

the port at the annual national

business awards. Chief executive

Mark Cairns won for Chief

Executive of the Year in 2012,

while Chief Financial Officer,

Steve Gray, won CFO of the

Year Award in 2017.

Your invitation

Bay of plenty

YEAR

BOOK

CELEBRATING BAY BUSINESS | 2019-20

Since the launch of our monthly newspaper Bay of Plenty Business

News in 2016, we have become the most credible and well-read

source of business information in the region.

We felt there was also a need for a quality annual publication that

celebrated the range and quality of the many businesses and

benefits of the Bay and have been delighted by the support our

first edition received from so many notable enterprises in the Bay

region.

Year Book 2019-2020 will build on our successful, inaugural first

edition. We invite you to profile your business in this prestigous

annual that profiles and ‘Celebrates Bay Business’.

PRINT RUN: 6,000

DISTRIBUTION: All major businesses, business hubs, airports, across

Tauranga, Western Bay, Eastern Bay, Rotorua and Whakatane.

KEY DEADLINES

Booking deadline: Monday, 16 March, 2020

Content deadline: Monday, 23 March, 2020

PDF/Print date: Monday, 20 April 2020

In market date: Thursday, 30 April 2020

Shelf Life: Annual/12 months

ADVERTISING INQUIRIES

Pete Wales, Business Director

pete@nmmedia.co.nz

022 495 9248

CELEBRATING BAY BUSINESS 2019-2020


-

COVER STORY

Another record-breaking year expected for Bay kiwifruit.

Photo/Supplied.

Optimistic outlook for the Bay’s

economy in 2020

Too little, too late?

From page 1

The most obvious indication

of a change in attitude has

been Finance Minister Grant

Robertson’s recent decision to

take the advice of a range of

economists and signal that he

was willing to borrow cheaply

and spend big on infrastructure

in the coming years.

We should not underestimate

what a major change of

policy this reflects. Labour

inherited a strong economy

from the previous National

Government and is highly

sensitive about any perception

that it is a “borrow and spend”

government.

Robertson announced

in December that the government

would take advantage

of historically low

global interest rates - and

New Zealand’s generally

strong economy - to undertake

“significant” spending

on infrastructure, with more

The need for infrastructure investment is the

most unifying issue for communities across

the Western Bay of Plenty.” - Matt Cowley

information promised for

January. As we went to press

there was little detail about

the scale of the spending

package. But the announcement

reflects real concern by

the government about its reelection

prospects.

Robertson described

it as a “once in a generation”

fiscal opportunity.

The government can now

borrow at an interest rate of

just 1.3 percent for 10 years -

an all-time low.

The announcement is welcome

news for Reserve Bank

governor Adrian Orr, who has

been calling on the government

to spend more money

to help stimulate the economy.

And it has been a call

voiced by a number of independent

and commercial bank

economists for months.

The problem is that by coming

to a decision on infrastructure

spending this late in the election

cycle, the government

may have left it too late, given

how long the impact will take

to trickle through to the wider

economy.

Orr has said he will be

watching the government

closely to see if it actually

spends what it said it

was planning to over the

coming years. But the reality

for Bay of Plenty is that

the region is in a good position,

and in particular the

Western Bay.

“We don’t see any

immediate problems,” said

Nigel Tutt. “In the near

future all business sectors

appear to be doing well

Continued on page 6

Matt Cowley

Bay of Plenty.

-


6 BAY OF PLENTY BUSINESS NEWS January 2020

COVER STORY

Optimistic outlook for the Bay’s

economy in 2020

From page 5

and having a good outlook.

If we look forward the outlook

is more subdued than

it was at this time last year.

How that will affect our

region - particular the

exporters - we’re not sure.

But there are no warning

signs.”

Tutt said he believed

central government would

throw money to the region

and invest more in infrastructure

as it comes up to

election time.

But he said that the region

faced some challenges around

infrastructure and how it

coped with the population

growth.

He acknowledged that,

even if the government went

ahead and borrowed to fund

major infrastructure projects,

infrastructure building

took time.

“We need aggressive

action fairly quickly, particularly

around freeing up land

for housing intensification

and transportation projects.”

In its most recent Infometrics

economic report, Priority

One said GDP (provisional)

in the Western Bay of Plenty

district was up 2.6 percent

for the year to September

2019 compared with a year

earlier. Growth was slightly

higher than in New Zealand

(2.4 percent) and higher than

in Bay of Plenty region (2.5

percent).

Global growth expectations

remain lower, particularly

regarding China,

other Asian economies, and

Germany, said Infometrics.

Domestically, slowing private

expenditure and falling business

investment remains a

drag on growth, and there are

growing calls, and solidifying

expectations, for increased

government spending, as signalled

by Robertson’s infrastructure

announcement.

Bay growth still good

GDP (provisional) was

$1,731 million in Western

Bay of Plenty district for the

year to September 2019 (2010

prices). Annual GDP growth

in Western Bay of Plenty district

peaked at 7.6 percent in

the year to September 2016.

But as Tutt noted in comments

when releasing Priority

One’s annual figures at it’s

recent AGM, 2019 saw the

Western BOP economy still in

good shape after several years

of growth.

“To continue regional

growth we must confront

challenges that we have in the

form of infrastructure, where

we desperately need investment

in key assets, and the

provision of talent, where our

job creation is outstripping

our supply of people,” he said.

“These two challenges are

complicated to solve, and will

require a team effort from

businesses, local and central

government alike.”

Tutt says that despite

these challenges, the

Western Bay had much to be

optimistic about.

“Our economy is very

strong with great base assets

like Port of Tauranga, our

hospital and wider health sector,

The University of Waikato’s

expansion and our capital

networks,” he said, adding

that the port was a great driver

(see acompanying story).

“We’re particularly

encouraged by both the health

of the main sectors of this

economy and the number of

innovative growth companies

that are thriving in the area.

Our unique mix of lifestyle,

purposeful industries and

scale of businesses will allow

us to attract and retain talent in

the area.”

Tutt said Priority One had

reset its strategy to take a

wider, more inclusive, view

of the economy’s contribution

to its community.

“Our goals are for the

economy to create value to

deliver prosperity to all of

our community, and for our

economy to be growing in a

sustainable manner,” he said.

“We view the creation and

encouragement of high value

jobs, and getting our own people

into them, as the biggest

Continued on page 7

Port quarterly results flat,

but annual prospects good

The Port of Tauranga’s first quarter report, for the period from

1 July 2019 to 30 September 2019, showed that it handled

nearly 6.8 million tonnes of cargo, a 1.1 percent decrease on

the same period last year.

Log exports dropped 5.2

percent in volume to just

over 1.7 million tonnes,

following a sharp decrease

in international prices and

demand in the past few months.

Dairy product exports

decreased 1.7 percent

compared with the same

period last year.

However, container numbers

increased overall to more

than 312,000 TEUs, a 5.8 percent

increase on the first quarter

of last financial year.

Transhipments, where a

container is transferred from

one service to another at Tauranga,

increased 9.2 percent to

Mark Cairns

more than 92,000 TEUs.

Port of Tauranga chief

executive Mark Cairns said

unaudited Group Net Profit

After Tax for the first quarter

was $21.7 million, down 6.3

percent from $23.2 million in

the previous corresponding

period.

“Based on the first quarter’s

performance, and notwithstanding

any significant market

changes, we expect full year

earnings to be between $96 and

$101 million,” said Cairns.

“This is the same guidance

we gave at last year’s

Annual Meeting for this year’s

record result.”

What’s in view for 2020

Franchising Trends

The end of a year and the start

of a new one is always a great

time to contemplate and plan

for what’s coming.

It is also a great opportunity

for us to review the crystal ball

gazing we did earlier in 2019

with what’s trending in franchising.

Time to polish the crystal

ball for the coming year. So

how did our trend predictions

play out this year, and what’s

going to trend and where are

the opportunities in 2020?

Multi-brand franchisors

Big tick here, in the food category

alone, with BurgerFuel

World Wide re-focusing on the

New Zealand market and introducing

two new brands.

Columbus Coffee owners

Café Brands purchased the

Mexico group, Coffee Club

has started to expand Bird on

a Wire and perennial creators

and owners of Mexicali and

Burger Wisconsin expanding

the Ha Poke brand and working

on future brands. A focus

on product diversification

and market segmentation will

see other mature franchisors

develop and introduce additional

brands to their portfolios

and existing franchise base.

Multi-site and multi-brand

franchisees

We may have been a bit ahead

of ourselves here, so this is still

a watch this space as the sector

matures, but it’s happening.

Again, innovation is emerging

with multi-brand single

location franchisees increasing

their offerings and market

appeal and combating ever rising

operating costs.

Health and well-being

Goes from strength to strength,

multiple and new fitness

brands continue to expand,

often in places that you would

not expect. Workouts are getting

shorter and somewhat

more interesting.

Based on the US and Australian

markets, we will continue

to see change and innovation

in this consumer - and in

turn franchise - market space.

Commercialising and eventual

franchising in the mental

health space is an area to keep

an eye on.

An environmental focus

I predicted disappearing plastic

bags were just the beginning –

and was this an underestimate.

Consumers drive the future

of brands and if worldwide student

protests are an insight into

the future of consumption, then

it’s green. Overseas markets

have seen massive growth in

bulk retailing, which is emerging

in New Zealand.

A couple of areas to also

watch will be systems focused

on recycling and resource use

reduction, whether conversion

of existing processes such as

making your house more ecofriendly

or incorporated into

delivery of their core service

or product.

Plant-based food

My prediction for 2019 was this

“will be a category to watch as

it becomes mainstream”.

Almost all the major food

franchise brands are now chasing

a segment of the plantbased

food market.

New Zealand’s only 100

percent plant-based branded

offering - Lord of the Fries -

is looking to expand through

FRANCHISING

> BY NATHAN BONNEY

Nathan Bonney is a director of Iridium Partners. He can be

reached at nathan@iridium.net.nz or 0275-393-022

franchising and a major crowdfunding

exercise.

Technology

We identified disruption and

technology as the macro-trend

of our times.

Disruption will continue

in large, noticeable ways as

well as the insidious creep of

technology, hardwired into

processes such as AI.

Shared and gig

economies

As predicted, there were big

developments in this area also

with the world’s largest shared

office space provider IWG

introducing and rolling out a

franchise model across New

Zealand.

On a smaller scale, expect

to see savvy franchisors

explore ideas to pool capital

and human resources in all

sorts of franchises from social

enterprise cafes to ride sharing.

Other factors that will

influence New Zealand

franchising in 2020

The economy. Local and international

pessimism persists.

This may drive an interest in

franchising generally as people

look to exit corporate life for

a sense of control and relative

stability.

However, a changing banking

environment could potentially

make funding harder.

Concerns over the introduction

of legislation are re-emerging,

which may be either tempered

or could flare up with an

election looming in the latter

part of 2020.


COVER STORY

BAY OF PLENTY BUSINESS NEWS January 2020

7

The consumer is king

Investment Market Update, the quarter

ended 30 November 2019.

The past quarter saw a

substantial improvement

in financial market

sentiment. At the start of the

period recessionary risks were

being constantly highlighted.

However, by the end of

November, these concerns

were regarded as overblown.

The consensus view

now is that the global economic

backdrop will improve

through 2020. Sentiment has

improved as consumer and

business data has proved

resilient in the face of trade

tensions and other geopolitical

risks.

In New Zealand, stronger

data has included a better

than expected bounce in retail

sales that, when combined

with continued strength in

our commodity prices, has

led to our terms of trade (the

price New Zealand receives

for its exports compared with

the price it pays for imports

boosting the country’s earnings)

hovering around record

highs. This has also resulted in

a surprisingly strong rebound

in business confidence.

Underpinning the

improved global economic

outlook has been the strength

of households (or consumers).

Central banks remain committed

to maintaining short-term

interest rates near historic low

levels. Low rates reduce the

borrowing and debt servicing

costs of consumers.

Additionally, higher asset

prices (including houses and

equities) have created a positive

“wealth effect”, boosting

consumer sentiment.

Lower rates have stimulated

a pick-up in housing activity

in most developed markets,

including in New Zealand,

Australia, and the US.

This should flow through to

improved consumer spending

during the first half of 2020.

Low rates and an

improving economic

outlook encourage

companies

Another consequence of low

interest rates and greater confidence

in the economic outlook

has been a sharp resurgence

in global corporate

merger and acquisition activity.

In November, on what’s

been labelled “Merger Monday”,

US$60 billion worth of

deals were announced on one

day.

Deals included brokerage

Charles Schwab agreeing

to buy rival TD Ameritrade

and France’s LVMH (the

world’s largest luxury goods

company) acquiring jewellery

company Tiffany & Co.

LMVH is reportedly funding

its acquisition of Tiffany &

Co with a bond issue paying

less than one percent interest.

Closer to home, in Australia,

Canada-based convenience

retailer Alimentation

Couche-Tard made a bid for

Caltex. In New Zealand in

recent weeks we have seen

Abano Healthcare’s Board

agree to a takeover offer, and

Metlifecare announcing that it

has received an “expression

of interest … to acquire the

company”. We expect M&A

WHAT TO DO WITH YOUR MONEY

> BY BRETT BELL-BOOTH

Investment Adviser with Forsyth Barr Limited in Tauranga, and an

Authorised Financial Adviser. Phone (07) 577 5725 or

email brett.bell-booth@forsythbarr.co.nz.

will continue to be a theme of

markets in 2020.

Investors have been

rewarded for sticking to

basics

The past quarter highlights

how quickly the winds of

economic sentiment can shift,

and how nerve-racking markets

can be for investors who

focus on the daily geo-political

and economic noise the

media creates.

Investors who have stuck

to core disciplines of a longterm

focus and a diversified

portfolio have been rewarded

with the “market risk premium”,

which means that

higher long-term returns will

compensate investors for

bearing additional investment

risk. While we don’t expect

medium-term returns to continue

to match those we’ve

seen year-to-date, the returns

we have seen do highlight the

benefit of sticking to investing

basics.

This column is general in

nature and is not personalised

investment advice. This column

has been prepared in

good faith based on information

obtained from sources

believed to be reliable and

accurate. Disclosure Statements

for Forsyth Barr Authorised

Financial Advisers are

available on request and free

of charge.

Optimistic outlook for the Bay’s

economy in 2020

From page 6

contribution we can make

to our community. We must

collectively deliver higher

incomes to the people of Tauranga

Moana.” Tutt told Bay

of Plenty Business News that

Tauranga was New Zealand’s

fastest growing city, now with

around 144,000 people.

“Population growth is

healthy for the economy in

many ways, but we need to

attract investment,” he said.

“We’re seeing businesses

coming either as branches or

in their own right, and there

will be some larger announcements

in the New Year,”

he said.

Export conditions

positive

Tauranga Chamber of Commerce

chief executive Matt

Cowley said the overseas

trade risks appearing to be

de-escalating, and the conditions

for exporters also

appeared to remain positive

for the near future.

“The region is looking

towards another great summer

with the possibility of

back-to-back record-breaking

kiwifruit seasons.

Our summer events calendar

is also jam-packed, which

will extend our festive season.

This is as well as more than

110 cruise ships to dock at our

local port.”

Cowley said that this

year’s increases to public sector

wages for police, teachers,

and healthcare should further

boost demand for local tourism,

hospitality and retail

operators.

“The government’s yearon-year

surplus will also put

pressure on both sides of the

government to review their

revenue and spending policies

leading up to the 2020

election,” he said.

“Government is already

signalling their intentions

to invest in infrastructure

to keep up with the continued

population growth.

It will be incredibly disappointing

if the Bay of Plenty

region was missed off the

infrastructure portfolio.

The need for infrastructure

investment is the most

unifying issue for communities

across Western

Bay of Plenty.”

The region is looking towards another great

Summer with the possibility of back-to-back

record-breaking kiwifruit seasons.”

BEWARE OF FOREIGN IMITATIONS.

There’s no shortage of great ideas in New Zealand.

But for an innovative bunch, we’re not the best at

realising the full potential of our innovations, particularly

when exporting them.

At James & Wells, we can identify your competitive

edge, offer business strategies for specific markets and

help you own and leverage your intellectual property to

ensure no one steals the fruit of your labour.

www.jaws.co.nz | +64 7 928 4470


Action-packed speedway magic for all.

Photo/Supplied.

Trustpower Baypark

- Tauranga’s Premier

Venue

The Feelers and Stellar: All the Hits Summer Tour kicks off our

summer concert series on the 20 December. Schoolboy friends

James Reid and Hamish Gee started a legacy in The Feelers that

has spawned some of the greatest songs written in New Zealand.

They will be bringing their

anthems to New Zealanders

alongside their

mates Stellar (stylised Stellar*)

the pop/rock band led by

vocalist Boh Runga,in a nostalgic

reunion of two illustrious

NZ bands

With a brief break to celebrate

Christmas and Boxing

Day, our next concert is on 27

December, where you can come

and groove the night away with

Katchafire, the Black Seeds and

Tomorrow People.

No summer would be complete

without the mighty Shapeshifter.

The record-breaking,

chart-topping Shapeshifter are

an integral part of New Zealand

music culture. Get in early

to secure your tickets for 28

December, and make memories

once again this summer.

And we are now mid-way

through the Speedway season,

with plenty more action-packed

nights coming up over Summer.

These include the International

Midget 40 Lap Gold Cup – 28

December, South Pacific Super

Saloon Championship – 5 January,

the New Zealand Sprint

Car Grand Prix – 18 January,

and Speedway on 25 January.

Bring the whole family

down for a night full of entertainment.

If you are interested

in watching the races from

the comfort of one of our

Corporate Boxes contact us

for more information.

Bay Dreams lineup

expands

Bay Dreams promoters are

also thrilled to reveal Halsey

and Tyler, The Creator as

two of 2020’s headliners.

They are joined by Skepta;

Yelawolf; Ella Mai; Ocean

Alley; Netsky; Mitch James;

Gunna; IAMDDB; Shoreline

Mafia; Winston Surfshirt; Sons

of Zion; Sub Focus; Friction;

Sasasas; Dimension; Kings

of the Rollers; Flux Pavilion;

Golden Features; Holy Goof;

Benny L; Dirtyphonics; UZ;

Trei; Tones and I; K+Lab;

Flowidus; Distortion; and many

more still to be announced.

With Bay Dreams continuing to

sell out year-after-year, tickets

are in hot demand for this festival

on 2 January.

Following the success of

their latest album, timeless

legends Sticky Fingers have

announced a “Yours To Keep

Tour”. This seven-date tour

throughout New Zealand will

land here on 3 January, 2020.

Tones And I will be playing

in Tauranga for their only headline

show in New Zealand on

5 January.

Originally from Australia’s

Mornington Peninsula, Tones

And I is having a massive

breakout year. She’s taken the

world by storm with her smash

hit ‘Dance Monkey’ (currently

#1 in New Zealand).

1-Day Sale

And the 1-Day is coming back

in 2020. It will offer big savings

on all your favourite Gadgets,

Big Brand Apparel, Toys,

Appliances, Smartphones,

Tablets, Laptops, Confectionery,

and much, much more.

First in, first served – once it’s

gone, it’s gone. We thin this

event’s going to be a pretty

big deal. Why? It’s pretty –

and saving has never looked

so sweet. It’s big with 1000s

of bargains to get amongst.

The Arena will be jampacked

full of crazy 1-day

bargains. This three day

extravaganza runs from 9 to

11 January.

Trustpower Baypark continues

to break the yearly attendance

records at our Summer

events and throughout the

year. With the multitude of

entertainment, business events,

sporting events and trade

shows, the number of events

just keep growing.

And business is already

gearing up for 2020. Remember

we can provide a complete

service for your event, including

state of the art conference

and meeting rooms, full PCO

event management services,

in-house catering, audio-visual

services and marketing/promotions.

Meet at Baypark for your

next event.

Upcoming highlights for

The Feelers and Stellar* reunion tour.

Photo/Supplied.

2020 also include: the Tattoo &

Art Extravaganza on 14 & 15

March, Splice Magic vs Northern

Stars on 23 March, and the

Pacific Rim 2020 Gymnastics

Championships from 17-19

April, to name just a few.

For more information on any

events, enquiries for Baypark

venues, BayStation activities

or service on/off site from Bay-

Catering, BayAudioVisual visit

www.trustpowerbaypark.co.nz,

email events@bayvenues.co.nz

or call 07 577 8560.


BAY OF PLENTY BUSINESS NEWS January 2020

9

Pioneering Bay impact

investing fund raises $20 million

The Bay of Plenty-headquartered Purpose

Capital Impact Fund (PCIF) has achieved its

first close target of raising $20 million and

is now ready to begin investing in projects

nationwide.

By DAVID PORTER

The fund is now officially

active, but will remain

open for further investment

and is aiming to reach

$30 million.

The fund was launched in

March 2019 by Bill Murphy,

founder of early stage investment

group Enterprise Angels.

(See our Bay of Plenty Business

News cover story, May-

June 2019).

PCIF has already attracted

several major investors,

including the Tindall Foundation,

K1W1, WEL Energy

Trust, BayTrust, TECT and

numerous private individuals

and family trusts.

It’s been a great

challenge, but the

commercial sector is

very open to the idea

of impact investing.”

– Bill Murphy

K1W1’s Robbie Tindall

said his family’s fund had

always been about making a

difference in New Zealand.

“Investing through Purpose

Capital Impact Fund is another

way for us to broaden and

deepen our impact throughout

the country.”

The new Bay fund reflects

the increasing focus globally

on Impact Investing, where

corporate foundation heavyweights

and high net-worth

individuals are combining

forces with the philanthropic

sector and family trusts to

invest in innovative solutions

to social and environment

problems.

Scaling up corporate

partnership

In New Zealand, it is the first

time the commercial sector

has partnered with community

trusts and individuals on this

scale with the aim of creating

positive social change as well

as making a profit.

Potential opportunities

include regenerative agriculture

on dairy farms, urban

transportation, green housing,

social housing and social

Purpose Capital Impact Fund executive

team leaders Bill Murphy and Kristen

Joiner. Photo/Supplied.

improvement through horticulture

projects partnering with

rural iwi.

Murphy said he was

inspired by the success of

impact investing overseas

and felt he was well-placed to

introduce the concept here.

“I felt very excited and

somewhat intimidated by the

opportunity to be part of getting

it going in New Zealand,”

he said.

“It’s been a great challenge,

but the commercial sector

is very open to the idea of

impact investing. They firmly

believe that taking commercial

business and investment

disciplines and applying those

to social and environmental

change will yield results.”

Experienced investment

team

The fund is being led by a highly

experienced team. Directors

include Jon Mayson (former

Port of Tauranga CEO and chair

of NZTE and Scales Corporation),

Steve Tucker (Gallagher

Group executive chair), and

David McCallum (director of

the investment banking team at

Deutsche Craigs).

“Bringing a performance

aspect to driving social change

is something that we’re all

really excited about and using

our commercial skills to create

more meaning than just more

money,” said Murphy, adding

that the challenge now was to

find the right projects to begin

investing in.

“Given the immaturity of

the eco-system for impact

investing in New Zealand, we

are having to go look for opportunities

and help shape those for

investment,” he said.

“We can’t simply sit back

and wait for things to come

to us. We have to be aware of

aspirational social and environmental

changes out there and

engage with them.”

The philanthropic sector,

and the contacts they have, will

be invaluable in this regard,

he says.

“They’re also a key partner

as additional resources will be

required to take that pro-active

approach to engagement with

really great environmental and

social change projects to help

bring those to life and make

those investable.”

It will focus predominately

across the central North Island

but will consider investments

outside of this region when the

right opportunities exist.

“We’ve had very strong

investment support to date from

Bay of Plenty and Waikato so

it was pleasing to have three

Auckland-based funds put the

icing on the cake by helping

us reach $20m – The Tindall

Foundation, K1W1 and The

Wilberforce Foundation”.

If you are considering

your current investment

arrangements, perhaps

it’s time to get a

complimentary review

Forsyth Barr is a New Zealand owned firm with 21 offices

nationwide including three offices in the Bay of Plenty and

Waikato regions. Supported by Forsyth Barr’s research and

investment expertise, our Investment Advisers can work with

you to deliver a personalised approach taking into account your

investment objectives, preferences and your tolerance for risk.

To make an obligation free appointment to discuss your

investment arrangements, contact your local Forsyth Barr office

by calling 0800 367 227. We look forward to discussing how our

investment advice can work for you.

Disclosure Statements for Forsyth Barr Authorised

Financial Advisers are available on request and free

of charge. Fees and charges will apply if you elect

to have a continuing relationship with Forsyth Barr.

TAU6195-01 - December 2019

Is your workplace

in the business of

doing good?

Acorn’s Workplace Giving

Programme builds pride, unites

employees and helps manage

your giving for bigger impact.

Learn more

www.acornfoundation.org.nz 07 579 9839


10 BAY OF PLENTY BUSINESS NEWS January 2020

One way to sell your

business for more

Quite often when a vendor goes to sell a

business, they have had enough and want

it sold in short order. The vendor assistance

period (if any) is often quite short.

Now in most business

sales the vendors sell

100 percent of the business

outright. However, there

are times when a vendor could

do better out of a business sale

if they considered staggering

the sale out over a few years

by selling incrementally to a

new owner.

Historically these arrangements

have tended to take

place when an existing

employee has been identified

to one day take over as owner.

However, I believe that we

will see proportionately more

businesses that will consider

an arrangement like this to

maximise the price they get.

One of the downsides of a

standard business sale process

Involving a minority

shareholder is a

significant decision,

but one that should

be considered as part

of any succession

planning process.”

is that potentially the buyer

pool can be limited. Say a

business is worth $1million

and is listed at that with a

broker. Unfortunately, not all

potential buyers have $1million

in the bank, or access to

enough finance.

Now this is a generalisation,

but more and more

people in the business buying

phase of life are closer to the

start than the end of large

home mortgages. They have

not benefited from strong real

estate markets, so they do not

have a lot of equity built up.

And that limits the buying

pool.

Here are a couple of advantages

to selling a business over

time in this manner:

1. Over the years that the vendor

is still a partial shareholder,

they are still making

their share of ongoing profits

– they may have missed

out on some of these had

they sold outright.

2. A deal like this may allow

an element of vendor

finance. If a deal like this is

available it may make the

buyer pool larger, which

could make the business

more valuable.

3. This offers the ability for a

smooth transition between

owners as the new owner

is really embedded in the

business before the original

vendor completely sells

out.

4. Where a business is heavily

dependent on the original

owner, then it is a way to

achieve a much higher sale

price than would otherwise

be the case in an outright

sale.

BETTER BUSINESS BUYING

> BY TOM BESWICK

Director at Ingham Mora Chartered Accountants in Tauranga, is a

business advisor who specialises in buying and selling businesses.

He can be contacted on 027-5744- 019 or tom@inghammora.co.nz

Yes there a few downsides

as clearly a business sale

arrangement like this is going

to take much more work than

an outright sale. Here are a

couple:

1. The process is more complicated

and takes more

time. It means the vendor

is tied up with the business

– they need to ensure they

leave a few years to exit

slowly, rather than waking

up one day and deciding

they will list the business.

2. The vendor retains the risk

of being in business – if

performance drops then

they may earn less from

the sale.

3. Finding the right buyer

who you can transition

ownership to (and who you

can work with daily) can be

a challenge.

I believe there is a growing

untapped pool of business

buyers out there.

People who have the skills

and desire to own and run a

business, but do not have the

equity and need a way forward

be able to buy.

If you are thinking about

exiting your business, then

you may have more options

than you realise.

Involving a minority shareholder

is a significant decision,

but one that should be

considered as part of any succession

planning process.

It may give you more in

the bank, a steadier handover

process, and the ability to

ensure your “baby” is in good

hands before you close the

door for the last time.

Getting great advice about

your options is key.

Back your next

project with better

knowledge.

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our years of experience, has seen Stratum

become a leading land development and land

utilisation consultant in the Bay of Plenty and

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Experience. Knowledge. Better Outcomes.

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Better outcomes.

ENGINEERS . PLANNERS . SURVEYORS . ENVIRONMENTAL

WWW.STRATUM.NZ | 07 571 4500


BAY OF PLENTY BUSINESS NEWS January 2020

11

Why workforce planning should

be your New Year’s resolution

Okay, so who’s made a New Year’s resolution?

Many people see the

new year as a time to

reflect, re-evaluate,

set goals and take those first

steps towards a new, improved

version of themselves.

Your workforce is no different.

As festive indulgences catch

up with us and we swear off

sugar, alcohol and late nights,

employers’ thoughts should

also turn to sustainable, long

term goals for keeping their

workforce in tip-top shape.

Workforce planning means

ensuring you have the right

people, with the right skills,

at the right time. It means

not being understaffed, or

overstaffed. And not getting

caught short.

Sound about as achievable

as abstaining from wine

and chocolate for a whole

year? It may not be 100 percent

achievable, but with the

right strategic planning, you

can front-foot your business

or organisation’s employment

needs before they arise.

Well thought-out workforce

planning can not only

help you attract the right talent,

it can help you develop

the employees you already

have to make the most of their

strengths.

And with the current tight

employment market, that’s got

to be a good thing, right?

Some things to consider:

Analyse your current

talent pool

Take a deeper look at your

workforce. Where does understaffing

most typically occur?

Is there a large turnover in one

particular area? Do you have

long-term employees who are

nearing retirement age? Are

there employees who could

move up the ranks, or sideways?

Look to the future

Align your current employees’

skillsets with the strategic

direction of your business or

organisation. What projects

do you have coming up? What

skill deficiencies do you have

in fulfilling these? Can you

outsource any of the upcoming

work?

Make a plan

Once you have identified any

gaps in your current and future

staffing needs, it’s important

to put a plan in place. That

could involve developing current

employees through additional

training, or hiring new

employees. If you are recruiting,

how many people do you

need? And what will your

recruitment process look like?

Workforce planning is a

wider function than just HR.

It involves multiple departments,

from the financial to

the marketing team. Call on

the in-house expertise, knowledge

and experience you need

to get it right.

Evaluate and re-evaluate

Workplaces are constantly

evolving, and with them

workforce requirements.

It’s important to regularly

revisit your plan, and evaluate

whether it’s achieving its

intended purpose. Any failings

will provide important

insights into how you can

fine-tune your strategy going

forward.

If this all sounds like common

sense - that’s because

HUMAN RESOURCES

> BY KELLIE HAMLETT

Director, Recruitment & HR Specialist, Talent ID Recruitment Ltd.

She can be contacted on kellie@talentid.co.nz or 027 227 7736

it is. But it’s surprising how

many businesses take a kneejerk

approach to staffing,

which can be both inefficient

and costly.

Planning ahead means you

can anticipate both realistic

timeframes and costs. Now

that’s a New Year’s resolution

worth keeping.

At Bayleys, we believe relationships are what businesses are built on and how they

succeed. We understand that to maximise the return on your property you need:

Professional property management

A business partner that understands your views and goals

Contact the Bayleys Tauranga Commercial Property Management team today.

Bayleys Tauranga

Commercial Property Management

07 579 0609

jan.cooney@bayleystauranga.co.nz

SUCCESS REALTY LTD, BAYLEYS, LICENSED UNDER THE REA ACT 2008

ALTOGETHER BETTER

Residential / Commercial / Rural / Property Services


12 BAY OF PLENTY BUSINESS NEWS January 2020

An eye for detail pays off

INTELLECTUAL PROPERTY ISSUES

> BY BEN CAIN

Ben Cain is a Senior Associate at James & Wells and a Resolution

Institute-accredited mediator. He can be contacted at 07 928 4470

(Tauranga), 07 957 5660 (Hamilton), and benc@jaws.co.nz.

One of the most exciting parts of my job

is seeing New Zealand companies take

their ideas and leverage them. Our firm

has recently worked with brothers Frank

and Paul Austin, to take their revolutionary

screw-less eyeglass frame design,

the ZYclip, to the world. Here is their

experience:

An engineer and industrial

designer by trade,

Frank started a successful

lighting design and manufacturing

company (Nimbus

Lighting) in 1972, which used

clip-together technology.

After years of dissatisfaction

with how sunglasses are

designed, the brothers were

inspired by the clip-on technology

in their lighting products

and set about creating an

optical frame that wouldn’t

require any screws, could be

made in different colours, and

was easily detachable to provide

wearers with different

looks.

Around 2011, armed with

designs and prototypes, Frank

and Paul consulted with James

& Wells partner Jonathan

Lucas to develop a strategy for

protecting and commercialising

their invention.

“When Frank and Paul

came to me with their initial

designs, I thought they looked

really promising,” said Lucas.

“People think hugely

complicated inventions are

needed to obtain patents. But

so many good designs are simple

or involve relatively small

changes to existing technology.

If they do the job better

than what is already out there,

a patent might be possible.”

Assessing patentability

Lucas was able to assess the

patentability of their idea,

establish whether there was

freedom to operate, and help

guide their thinking around

how they could leverage their

IP. Rather than manufacture

the product themselves, the

brothers hoped to license their

design to an eyewear company,

so they worked with Jonathan

to realise this vision, and

ensure any deal they entered

into would be in their best

interests.

“We enjoy the design process

– finding solutions to

problems and tweaking the

product until it is perfect,” said

Paul Austin.

“We didn’t really want to

build an eyewear company

from scratch - instead we preferred

to partner with an established,

reputable retailer.”

Licensing can be a great

option. When compared with

self-manufacturing, there is

less investment required and

less risk, businesses become

profitable faster and can access

potentially tricky markets.

It also allows inventors and

designers to focus on the areas

they enjoy and are strongest

in rather than worrying about

operations and management.

Having IP protection in place

gives licensees the assurance

that they have sole access to

the innovative technology.

In 2013, after a lot of experimenting

and refinement of

their concept, Frank and Paul

approached the Australasian

team of eyewear company

Specsavers – the third-largest

prescription eyewear company

in the world. They loved the

product and eventually signed

a licensing agreement giving

them certain distribution rights

to the technology around

the world.

“Specsavers loved the concept

and introduced it into

their ranges, a big call for

such a large company. We now

hope that they will eventually

use this screw-less method in

all their glasses frames,” said

Paul Austin.

Collaborative partnership

The partnership with Specsavers

has been truly collaborative,

with the brothers being

able to customise the product

to Specsavers’ needs. “We

used the mechanism from our

prototype but incorporated

Specsavers’ insights to create a

product that was right for their

customer.”

The range of feather-light,

screw-less frames has recently

been launched into 380 stores

across New Zealand and

Australia. There is potential

to extend distribution to a

network of 1800 Specsavers

stores internationally.

Said Lucas: “Paul and

Frank are dynamic, clever

and easy to work with. They

respect professional advice

and have a lot of commercial

nous. They understood

that they had to create their

own opportunity and I was

impressed at how fast they

were able to secure a deal.”

Frank Austin was quick

to acknowledge Jonathan’s

role in their success. “Over

40 years we have dealt with

a number of patent attorneys.

Jonathan stands out. His experience

and knowledge of IP

enabled him to advise, coax

and, at times, challenge us to

come up with solutions. As a

result, what started as a simple

idea has become a commercially

viable method of making

eyewear.”

The brothers now have

their sights set on the US,

where Specsavers don’t operate.

They plan to sign a similar

deal with a US retail chain.

Bright optics indeed.

Driving efficiencies through

business defined technology

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Contact Selwyn at Selwyn.west@yorb.tech

www.yorb.tech | 027 555 3181

Bay of Plenty

Manawatu

Whanganui

Hawke’s Bay


BAY OF PLENTY BUSINESS NEWS January 2020

13

Microsoft Ignite 2019

Microsoft Ignite was held in Orlando,

Florida in late 2019. The annual technology

conference gets 26,000 attendees and

hosts more than 1500 sessions.

The sessions cover everything

from OneNote

and Project through to

the latest developments in AI,

Machine Learning and Quantum

Computing.

Diversity and inclusion are

core elements of the Microsoft

mission to empower every person

and every organisation on

the planet to achieve more.

The speed of technology

change and breadth of skills

and disciplines now in the technology

sector is truly amazing.

Three that I felt showcased

the development within Microsoft

were Project Silica, The

Power Platform and Project

Cortex.

Bit nerdy (Project Silica)

With an estimated 100 zettabytes

of data being stored by

2023, there is a need for low

cost, high capacity, resilient

storage. Microsoft and partners

have developed a high capacity

3D storage solution by using

lasers to etch the data into

quartz glass. The videos are

reminiscent of low budget 20th

century sci-fi movies, where

aliens from the future have

stored their knowledge a small

glass memory cube. https://

youtu.be/6CzHsibqpIs

Business productivity

(The Power Platform)

Microsoft has been building

The encouragement to

transform businesses

by guiding them to

the cloud, introducing

plenty of opportunities

and areas for growth

will allow businesses

to work smarter, not

harder.”

out their Power Platform suite

for the last couple of years.

The aim is to build a set of

tools that can quickly and easily

be used to help businesses

develop tools and solutions to

address their own unique business

requirements.

Power BI for Business

Intelligence and reporting,

PowerApps for creating simple

mobile applications and Power

Automate to automate those

day-to-day routine processes.

The latest versions of these

tools increase the integration

into your legacy applications.

Allowing you to automate

tasks such as inputting invoices

into your accounting package,

or time sheets into your payroll.

The limitation with these

tools is your imagination.

Workplace Intelligence

(Project Cortex)

Over-time we develop contracts,

policies, processes,

configuration standards and a

plethora of other collateral and

knowledge we hope our staff

are reading and following.

This unstructured data

gets filed in word documents,

wiki pages, e-mails and excel

spreadsheets in what we all

personally feel is a logical

location, though no one else

can ever find it.

Project Cortex is about

bringing that data to those who

need it, using AI and contextual

search to scan, index and

build relevant knowledge for

your users.

For instance, a search for

“What is our company’s pet

policy?” would result in the

system automatically building

a knowledge article for the

individual based on employment

contract templates, company

handbooks and any other

company accessible data.

The system will then provide

links to the documents

it gathered the data from and

contacts you can talk to regarding

the topic.

This technology was certainly

one of the most interesting

at the conference and

TECH TALK

> BY DANIEL GOYMER

Daniel Goymer is the Technical Director of Yorb, a Business

Technology Partner. He can be reached on Daniel.goymer@yorb.

tech or 0800-600-606.

the one which could have the

biggest impact on dealing with

information management.

This is not a new service you

need to subscribe to; it is being

implemented into your standard

Office 365 subsxcription.

With more than 150

announcements, Microsoft did

not disappoint.

Revealing insights into

Project Silica, the Power Platform,

and Project Cortex.

The capabilities within

Microsoft impressed the

masses with their efforts

towards enhancing workflow

and optimising productivity in

the workplace.

The encouragement to

transform businesses by guiding

them to the cloud, introducing

plenty of opportunities

and areas for growth will allow

businesses to work smarter,

not harder.

We partner with

you to deliver endto-end

property

services to help

you achieve

your objectives.

Located in Tauranga, Hamilton & Rotorua | info@veros.co.nz | www.veros.co.nz


Bay of plenty

CONNECTING

BUYERS AND

SELLERS OF

QUALITY

BUSINESSES

First on the scene

Photos from the recent Technology Investment Network (TIN) event hosted by

EY Tauranga at The Vault in Tauranga.

Photos/Salina Galvan Photography

When is the right time to sell

your business? Right now.

At TABAK, we promise to guide

you through the sales process

with focus, integrity and

complete confidentiality.

1

1 Nigel Tutt, Priority One; Greg Jarvis, Bluelab and Mark Irving, Priority One. 2 John Olsen with Matt Cooney, Hadleigh Ford

and Paul Hansen, SwipedOn.

2

3

4

3 Rachael Gemming, EY; Eric Smith, Stratus Blue; Matt Cooney, SwipedOn and Kimberley Irwin, Tompkins Wake.

4 David Le Breton, Hobson Wealth; Hadleigh Ford, SwipedOn and Fraser Mills, BNZ.

FOCUS • INTEGRITY

CONFIDENTIALITY

WHY TABAK

5

5 Peter and Jacqui Wren-Hilton, AgritechNZ; Greg Shanahan, TIN and Adrienne Ramskill, TIN.

6 Ben Cain, James & Wells and Rachel Scott, Tompkins Wake.

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7 Jason Low, Trimax Mowers; Pip Loader, PipLoader.com and AJ Prinsloo, Radfords. 8 Sacha Philp, Robert Walters and Heidi

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w. tabak.co.nz

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11 12

10 Lachie McKenzie, BNZ and Ian Gray, Cucumber. 11 Matt Cowley, Tauranga Chamber of Commerce and Scott Hamilton,

Quayside Holdings. 12 Nick Pharo, Datacom and Greg Jarvis, Bluelab.


Port chair Pilkington wins leading

national business award

Port of Tauranga Limited’s David Pilkington

was named Chairperson of the Year in the

Deloitte Top 200 Business Awards.

By DAVID PORTER

Deloitte Top 200 judge

Cathy Quinn said that

any entity Pilkington

chaired had performed financially

and grown consistently

during his tenure.

“He is an inclusive chair

and facilitates an environment

to get the best out of people

and has been selected as the

winner due to his track record

of success as a chair over a

long period.”

Pilkington joined the Port

of Tauranga Board in July 2005

and has been chair since 2013.

Since then, Port of Tauranga

has successfully completed its

strategy to become “big ship

capable” and is now by far

New Zealand’s largest port.

The company’s market capitalisation

has more than doubled

during his tenure to more

than $4.6 billion.

His win made it a hat trick

for the port at the annual

national business awards.

Chief executive Mark Cairns

won for Chief Executive of

the Year in 2012, while Chief

Financial Officer, Steve Gray,

won CFO of the Year Award

in 2017.

Cairns said Pilkington’s

win was well-deserved.

“I appreciate David’s

steady and pragmatic leadership

style, as well as his deep

understanding and experience

in governance,” he said.

“He ensures a diverse

range of opinions are heard

from around the board table.

His foresight has helped us

stay focused on our long-term

goals, while remaining flexible

and responsive to our operating

environment.”

Pilkington had a very direct

approach and did not shy away

from pulling the management

team into line when he saw the

need, said Cairns

Pilkington was previously

a member of Fonterra’s senior

executive and has a strong

background in marketing,

international business and

supply chain logistics. He

holds directorships in Port of

Tauranga Trustee Company

Limited and PrimePort Timaru

Limited. He is also chair of

Douglas Pharmaceuticals Limited,

and Rangatira Limited.

He was chair of Northport

until November, but stepped

down in line with the company’s

two-year rotational policy.

His foresight has

helped us stay

focused on our longterm

goals, while

remaining flexible

and responsive

to our operating

environment.”

- Mark Cairns

David Pilkington:

Pragmatic and inclusive.

Photo/Supplied.

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16 BAY OF PLENTY BUSINESS NEWS January 2020

Treat people well for

the best outcomes

CREDIT MANAGEMENT

> BY NICK KERR

Nick Kerr is Area Manager BOP for EC Credit Control NZ Ltd.

He can be reached at nick.kerr@eccreditcontrol.co.nz

After 13 years in the credit management

field I’ve learned something really important

that I would like to share.

In particular, in the past

four years we have run NZ

Repossession Services, we

have carried out more than 300

incident-free high-risk repossessions

involving debtors

with serious criminal violent

offending histories and/ or who

are active Methamphetamine

users. And I have found that

no matter who the person is,

or what activity you are doing,

your attitude and approach is

everything.

We have woken up people

at 6.30am who most people

would not want to come across

on their best day to hand them

a winning lotto ticket for fear

of violent reprisal, and relieved

them of their only vehicle. The

way we do this is not exactly

ground-breaking. We simply

treat people with respect, compassion

and we always act with

a spirit of resolution, not one of

dominance or superiority.

We are either on the doorstep

to cause a problem or fix a

problem. And those are the two

ways that we can be viewed.

People want to help you fix a

problem for them - and they

will always want to stop you

causing one.

It is ingrained to respond in

kind to how you are spoken to.

If you went into a church, rest

home, or any other typically

serene and non-combative

environment and looked for a

fight, I would bet you’d find

it if you looked hard enough.

As noted, the reaction you get

is a result of the action you

take and the attitude you bring

with you. Once someone feels

threatened or cornered, they

will react in one of two ways

- fight or flee. But neither of

those options are what we

want in the recovery of assets.

Violent interactions, no matter

how they end up, cause a huge

amount of paperwork and follow-up

investigations if not

a Ministry of Justice / police

investigation.

In addition, our client’s

asset could be at risk of damage

or destruction. In short, no

one wins if everyone loses. Our

company has an over 95 percent

success rate in the recovery

of assets for clients, which

shows that you can achieve

ethical profitability even in the

most unlikely industry.

When we began doing

repossession work, we made a

conscious decision to set ourselves

apart from the aggressive,

thuggish Neanderthal

image that has beset our industry

due to unrealistic “reality“

TV portrayals of unintelligent

repo agents getting into scraps

on every job and embarrassing

the debtors for the entertainment

of couch potatoes.

I count myself fortunate that

I found myself in a horrendous

financial situation as a younger

and much less prudent individual.

Then I had a few things

repossessed and nearly found

myself going bankrupt. After

15 years and a lot of hard work

I am no longer in a bad place

financially. But I know exactly

how it feels to be on the other

side of this transaction.

So how could I ever dare

look down on people who

are only different to myself

because of the passage of time?

I have learned how to get out of

debt the hard way and love seeing

others do the same. Even

something as small as informing

the debtor that the default

fees stop when the asset is

repossessed, and that this could

save them $50-$100 a week,

can make a huge difference. It

can help them understand that

they could move on and get

ahead, rather than languishing

under mounting fees by hiding

themselves or the asset.

In any interaction with

another human, there is the

opportunity to either harm

or help. When you have the

opportunity to encounter

someone who a large section

of society would look down

upon, sometimes a simple

show of respect and compassion

from someone who has

been there can make a world of

difference.

Just a thought.

ROTORUA

1268 Arawa St

Rotorua

TAURANGA

Virtual Office


BAY OF PLENTY BUSINESS NEWS January 2020

17

Exhibition Summer

in the Capital

ARTS AND CULTURE

> BY ALICE HUTCHISON

Alice Hutchison is the director of the Tauranga Art Gallery.

She can be reached on director@artgallery.org.nz.

Wellington offers a diverse visual treat this summer.

There are new exhibitions

on view at City Gallery,

Te Papa. In addition,

Kelcy Taratoa’s new paintings

were at Bartley + Co (run by

gallerist Allison Bartley) concurrent

with our survey exhibition

and new wall paintings

at Tauranga Art Gallery, the

Adam Art Gallery is celebrating

its 20th anniversary

and a major new acquisition,

and Enjoy Contemporary Art

Space offers a fresh new commission.

Te Papa has mounted an

ambitious new project with

artist Nike Savvas titled

Finale: Bouquet (2019) on

view until January 12, 2020.

Spanning two large floors and

suspended floor to ceiling are

thousands of brightly coloured,

fluttering confetti, precisely

arranged and tethered. The

colour palette was inspired

by many sources, including

botanical prints of native New

Zealand flora.

Created with more than

200,000 pieces of coloured

confetti, the magnitude of

scale has made it a selfie

favourite. Its popularity and

“gramability” captures a

moment of jubilation, with

confetti caught mid-fall in perpetual

celebration. The result

is a 3-4D painting. Savvas is a

pointillist for the 21st century.

As the artist says: “I’m hoping

that people can see this work

as a giant painting… the tabs

as hundreds, thousands of different

coloured brushstrokes.”

Two other intriguing new

exhibitions at Te Papa include

the visceral and stunning

Tatau: Samoan Tattooing and

Photography, featuring four

artist-photographers Greg

Semu (whose work is currently

also on view in Te Rangi

Haupapa at TAG), Angela

Tiatia, Mark Adams and John

Agcaoili.

The exhibitions include

interviews of women and men

discussing their personal experiences,

the significance of the

sacred markings they have had

permanently inscribed into

their skins, the powerful role

of tradition, and their effect on

the body and sense of identity.

Enduring enormous and

prolonged pain, the “pe’a’”

is the intricate male tattoo.

Semu’s self portraits document

his 25-year journey with

photographs accentuating the

graphic elements of symbols

or monochromatic pattern in

intimate detail, cropping to

reveal the perfectly articulated

artworks.

Tamatea: Legacies of

Encounter, considers a rare

historical painting by William

Hodges, the official artist

aboard the European voyage

through Fiordland in the

Autumn of 1773. Tamatea

(Dusky Sound as Cook called

the area), is presented through

personal notebooks with

observations, taonga and historic

prints, with two small

McCahon paintings, and an

epic photographic installation

by Mark Adams (in the concurrent

Tatau).

At City Gallery- a profusion

of contemporary

works includes a six-screen

video installation by Christchurch

artist Steve Carr, with

drone-captured fireworks.

News from the Sun features

photography by Wellington’s

Harry Culy and Shaun Waugh

and Sydney’s Justine Varga.

Unravelled features a broad

range of media with artists

exploring decomposition and

disorganisation, referencing

earlier art movements and

showing how imported art

ideas and artistic role models

continue to shape artworks

made in the antipodes.

Michael Parekowhai’s The

Night Watch (2018) and Kapa

Haka (2015) at City Gallery.

Photo/Alice Hutchison.

Satirising selfies

Encounter 1 juxtaposes

Michael Parekowhai’s The

Night Watch (2018) and Kapa

Haka (2015). The ceramic

astronaut with his lilliputian

security guard, are alongside

Congolese-Belgian musician-filmmaker

Baloji (the

music video can also be viewed

on YouTube). This is the first

in a series of exhibitions juxtaposing

artists exploring

the theme of encounter. Both

address the unreadability of

the other.

Parekōwhai juxtaposes two

figurative sculptures. A lifesize

astronaut in a spacesuit

bears a NASA emblem (advertising

America’s colonisation

of the moon) and a Tino Rangatiratanga

one (protesting the

colonisation of New Zealand).

Titled The Night Watch (2018),

the figure is inscrutable-a mirrored

visor conceals his or her

identity. What could NASA’s

and Tino Rangatiratanga’s

joint mission be?

The other sculpture

is a maquette version of

Parekōwhai’s Māori security

guard for hire, Kapa Haka

(2015), arms defiantly crossed.

Their meeting is like something

out of Gulliver’s Travels.

What do we make of them, and

they of one another?

Self-styled and directed,

Baloji is a major social media

influencer in Africa and the

French-speaking world. In the

gallery, Baloji’s visual feast

and romantic lament Peau de

Chagrin / Bleu de Nuit’ (Heartbreak/Night

Bruise) (2018)

creates a gorgeous, sci-fi,

Afrofuturist love song. Both

artists wryly self-reference as

the exotic “other”- inscrutable,

unreadable protagonists

observing one-another.

Nike Savvas, Finale:

Bouquet (2019) at Te Papa.

Photo/Alice Hutchison.

Baloji shot his music clip

during his residency at Lusanga

International Research Centre

for Art and Economic Inequality,

in the Democratic Republic

of the Congo.

It’s based on a Pygmy marriage

ceremony, following a

bride and groom leading up to

their wedding.

As the artist explains,

“Many shots depict an absent

partner, which implies that

one of them has gone back on

their promises; changed their

mind. The film illustrates this

allegorically, showing the two

protagonists alone in their

wedding finery in front of the

ceremonial installations.”

The implied disconnection

between lovers maps

onto the disconnection

between the Congo (as subject)

and the Western gaze.

https://citygallery.org.nz/

exhibitions/encounter-1/

Marketing trends to embrace in 2020

We’re finally here. It’s

the future –and in

2020 we’re entering

a new age that was once the

exclusive territory of sci-fi

novels and TV programmes

with strange looking aliens

and terrible special effects.

But how much has

changed? From a marketing

perspective, what should you

be considering in your business

to make sure you stay

ahead of the curve in this brave

new world?

Here are some of the key

trends Bay of Plenty businesses

may want to consider

when they contemplate their

marketing approach for the

year ahead.

Personalised online

shopping experiences

are in

As more of our marketing

becomes automated, you

might think that would result

in a more generic message

and experience. But that’s not

always the case.

The growing availability

of customer data allows

companies to target their

advertising and promotions to

speak directly to customers’

desires.

This trend is particularly

noticeable in e-commerce,

and many companies are now

tailoring the featured products

they display to customers on

their websites based on their

purchase history or which

products they have been looking

up lately.

If you’re browsing a website

and you’re a cat person,

expect to see featured sales

on cat food when you next

do your online supermarket

shopping.

If you’ve purchased a rugby

ball from a sports retailer’s

website, you might see rugby

boots or All Blacks apparel

pop up in the “suggested products”

the store displays to

you right up front when you

next visit.

Online retailers that are personalising

the products they

display are seeing increased

sales and higher conversion

rates, and we’re likely to

see much more of this in the

year ahead.

We’ll see 3D or

augmented reality on

websites

While 3D technology and

augmented reality aren’t new,

they are becoming more mainstream

in digital marketing

and e-commerce.

A growing number of

brands are using them to

create a point of difference

and bring their products to

life by providing immersive

experiences online.

Specsavers has a website

that allows users to scan their

faces using a webcam or phone

camera so they can virtually

“try on” any pair of glasses.

IKEA provides an app that

can be used to virtually place

IKEA furniture into any room

in a house, enabling customers

to visualise it in-situ.

This trend is set to continue

in 2020, driven by new tools

that make creation of 3D and

augmented reality experiences

less expensive, and also by the

changing expectations of consumers

who may soon come to

expect them as the norm.

Illustrations are coming

back

At a time when technology is

driving most of the big marketing

trends, it’s interesting

to see a noticeable trend back

towards the use of illustrations,

rather than graphics and photos,

in advertising, on websites

and in marketing imagery.

Illustrations can give a

business personality and help

it stand out from the crowd,

particularly in an environment

where stock imagery

and graphics have become so

prevalent.

They can also hook into a

sense of nostalgia by creating

a mood that reflects simpler

times – those halcyon days of

our youth when Disney movies

and cartoons were created

using hand-drawn animation,

rather than the modern CGI

animations of today.

Nostalgia can be a powerful

thing, and marketers are picking

up on its potential to influence

buying decisions.

Influencer marketing gets

bigger

Everyone knows the power of

influencer marketing. Getting

well-known personalities to

sing the praises of your product,

service, or even a country

(in the case of tourism), is

smart business.

But there’s been a change

in recent years as smaller businesses

get on board and begin

to utilise it in lower cost and

more hyper local ways.

Rather than getting A-list

celebrities on board, smaller

businesses are beginning to

see the value in getting multiple

existing customers who

are locally popular on board to

THE LAST WORD

> BY JAMES HEFFIELD

Director of Bay of Plenty marketing and PR consultancy Last

Word. To find out more visit lastwordmedia.co.nz or email

james@lastwordmedia.co.nz.

champion their brands.

In some cases, this can be as

simple as offering a free t-shirt

or other visible item with the

request they share it on social

media for their Facebook or

Instagram friends to see.

In 2020, we can expect

more businesses to get creative

with how they involve local

influencers in their marketing

campaigns.

New data tools are also

likely to emerge that make it

even easier to identify which

of your customers or contacts

have the best social media

following and would make

ideal targets to champion your

brand.

Voice navigation on

websites

Google has long been talking

about the rise in the percentage

of searches being done using

voice search.

Many people see voice

search as a convenient technology

while they are on the

go – think asking directions

from Google Maps while

you’re driving.

Voice search can also

improve accessibility for

some disabled users, such as

those who are blind or visually

impaired, who might not find

it quite so easy to read or type.

Not to mention the rise of

smart speakers, like Alexa,

that enable you to control

everything from your music

and TV, to the lights in your

house.

Despite this, we haven’t yet

seen many companies including

voice search and navigation

on their websites.

As more people begin

using the technology, it’s only

a matter of time before this too

becomes mainstream.

Just make sure your threeyear-old

son doesn’t yell out

the wrong words in the background

next time you’re using

voice to add items to your

online shopping cart.


Get 2020 off to a Smart Start.

Book now to showcase your

ONE

DAY

ONLY!

business and learn from the best.

LEADERSHIP

DIRECTORSHIP

& GOVERNANCE

SOCIAL MEDIA/

CONTENT MARKETING

KEY NOTE SPEAKER

Craig Hudson

Managing Director

New Zealand &

Pacific Islands, Xero

GUEST SPEAKER

Kirsten Patterson

Chief Executive,

Institute of Directors

GUEST SPEAKER

Brent Ireland

Director, Collab Digital

Smarter Business Event

The National Business Network – Smarter Business Event 2020

will bring together hundreds of businesses from corporates to

SME’s in one location for one day across all business categories

attracting business owners, decision makers, managers and staff.

The purpose of the event is to bring Bay of Plenty wide businesses

together annually at one location for a day to hear from leaders

and well-respected business people to network, make contacts,

build new relationships, find new business partners, contractors,

suppliers and clients to do business.

The event is designed to provide every business that attends with

a return on their investment by offering fantastic value at a very

competitive price. This is a ticketed only event with all businesses

attending being paid attendees.

Format

B2B ticketed only event.

Each business gets a 1m x 1m table with entry

for 2 people from that business.

Please bring a pull up banner, business cards

and other collateral to promote your business.

Location

Queen Elizabeth Youth Centre (QEYC)

Cnr Devonport Rd & 11th Ave, Tauranga

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BAY OF PLENTY BUSINESS NEWS January 2020

19

Cash flow

and mortgage

security

A new year is for new beginnings, and if

this is your year to get started in business,

good for you! The best advice for any

start-up is: make sure your cash flow is

managed well. One of the main reasons

businesses fold is that they run out of cash.

But if you are smart about how you spend

your start-up capital and keep a close eye

on your cash flow, disaster can be avoided.

Learning how to effectively

manage your

money can truly make or

break a business, as cash is the

lifeblood of any venture.

Controlling cash can be

streamlined by bringing in technology

to assist with anything

from accounting reconciliation

to supplier management.

Depending on the size

and scope of your operations,

you can start off with a simple

spreadsheet or better still,

invest in an appropriate software

package.

For most businesses, experiencing

unexpected highs and

lows in sales is a reality, and

both can have a serious impact

on your cash flow.

If money becomes an issue,

because you need to invest in

new equipment, hire more staff

or involve a third-party supplier,

Paula Lines, Commercial

Lawyer at The Law Shop.

for example, you could consider

taking out a business loan.

You can turn to your bank

or see one of the many finance

and lending companies for this,

but do not rush things as it is

hugely important to get it right.

If you’re thinking about

purchasing assets or expanding

your business, or your

business needs an overdraft to

cover shortages, one thing is

certain - the lender will want

security.

“If you own your own

home, you may be able to borrow

against it for the capital to

buy or start up the business or

an overdraft for help with cash

flow.

If you can borrow against

your house, you’ll be able to

get home loan interest rates

rather than business rates and

you may get a longer-term,”

explains Paula Lines, Business

Law expert and Director of The

Law Shop.

If you’re thinking about purchasing

assets or expanding your business, or

your business needs an overdraft to

cover shortages, one thing is certain -

the lender will want security.

“A mortgage over a house

is a more attractive option for

a bank, as it’s usually easier

for the bank to sell a house if

they need to rather than trying

to sell business assets, which

may not have a huge amount

of value outside that particular

industry,” she says.

“Whether you can do this

will depend on how much you

already owe secured against

the home.

“It also puts your home at

risk if your business fails, so

you need to be absolutely sure

that it is a good option for you.”

Over the years, The Law

Shop has worked with all

major banks as well as specific

business lenders.

Whatever your reasons for

business borrowings, Paula

and her team can help you with

obtaining the funds you need to

keep your business thriving.

Call 0800 LAW SHOP

if you would like to discuss

your situation with the team.

They understand the securities

that lenders require and can

explain everything so you are

fully aware of your options and

obligations, and understand all

that’s involved.

PAULA LINES

LL.B | Director

ROTORUA

1268 Arawa St

Rotorua

TAURANGA

Virtual Office


Trusted to sell the Bay of Plenty’s finest homes

and lifestyle properties.

OLIVER ROAD ESTATE AGENTS LIMITED | LICENSED REAA 2008

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