Hutt News : September 27th 2011
4 HUTT NEWS, SEPTEMBER 27, 2011 NEWS 4059706AA 100% HUTT VALLEY OWNED 25 Bouverie St, Petone 045698311 firstname.lastname@example.org MON-FRI: 7am-7pm; SAT, SUN & PUBLIC HOLIDAYS: 8am-6pm THE MEGA OUTDOOR FURNITURE EXPO • MEGA BOUNCY CASTLE • COMMUNITY SAUSAGE SIZZLE • FACE PAINTERS FOR THE KIDS 4 DAYS ONLY PETONE THIS WEEKEND Fri 30 Sept - Mon 3rd Oct See Levi & Ronald McDonald in person - Petone Store Sat 1 Oct. Check in store for times! • Triple Fly Buys • Free Delivery on any Outdoor Furniture or BBQ purchase over $500. (Conditions apply. See in-store for details) • Receive a $50 M10 Gift Card with every Outdoor Furniture Setting purchased over $500. • Purchase a BBQ over $500 and receive a FREE 9kg Gas Cylinder (empty) (Offer applies for this weekend only. While stocks last!) WEBBER KETTLE 1 & 2 October 9am - 5pm Artists' pro les, images and maps at: www.kapiticoast.govt.nz/artstrail TAKE HOME REAL NZ ART! 60 Artists in their Studios Explore Art & Artisans Fairs Ótaki to Paekákáriki Have fun, take the train Information / schedules at www. tranzmetro. co.nz No more capital for ES FROM Page 3 A local contractor who talked to Hutt News but declined to be named while EnergySmart was still trading, said his firm was owed $100,000. If it was not paid, he feared his company could go under. The contractor said the Energy Efficiency and Conser- vation Authority, which gives accreditation to approved installers under the Warm-Up NZ programme, should have issued warnings that Energy Smart s finances were under pressure. But EECA s Vicki Connor said while financial checks -- as well as stringent checks on materials used and installa- tion procedures -- were part of criteria when 60 providers were chosen from 240 applicants in 2009, the res- ponsibility for ongoing financial viability was down to the directors of the approved firms. Hutt Mana trust chairman Ian Hutchings said trading results from EnergySmart had been disappointing for a while. Extra competent commer- cial directors were appointed and there was an improvement in financial results, but clearly [the company] wasn t able to continue for any signifi- cant period of time without a reasonably significant injec- tion of funds . EnergySmart had been retrofitting insulation in sev- eral hundred homes a month, but capital was needed for stock. After discussions with directors and managers, trustees decided not to invest more capital and to call in liquidators. The trust, which looks after about $38 million of former power board assets on behalf of Hutt Valley, Porirua and North Wellington residents, paid nearly $800,000 for EnergySmart five years ago. It aligned with the trust s interest in promoting energy efficiency. The trust put another $750,000 into Energy- Smart in 2009. There had been squabbles at trust annual meetings that the company was not paying suf- ficient dividends. The lack of returns was explained away as growing pains , and that there would be a longer-term pay-off. EnergySmart s turnover in 2009-10 was $13.6 million, but it still made a loss of $750,000. Mr Hutchings said ongoing and significant theft of stock from EnergySmart, discovered mid-2010, did not help. Police were called in, and while total losses were never pinpointed, it was in the range of $500,000 to $1 million. That s now water under the bridge , says Hutchings. But it took out all the retained earnings and more, which was the working capital. It s passed us by, but it s frustrating to know that it s contributed to this [liquida- tion]. Until -- or if -- EnergySmart can be sold, it will not be known how much the trust will lose on its investment in EnergySmart. EnergySmart s Railway Avenue building was recently sold. While the price achieved wasn t the $2m the Hutt Mana trust paid four years ago, Mr Hutchings said it met a cur- rent valuation. He declined to disclose the price paid. Markets are down at the moment. When you consider the [rental] income we ve been receiving, it s paid its way. Mr Hutchings said the building, sold in conjunction with Parklane Motors, needed redevelopment, and the trust decided that was not its line of expertise or interest.
September 20th 2011
October 4th 2011