Directors’ Report
Directors (back row, L-R) Gavan Herlihy, Caroline Saunders, Steve Saunders, Chris Downs, (front row) Paul Reynolds, Jane Taylor (chair), Victoria Taylor and Emily Parker.
For the year ended 30 June 2016
The Directors of Landcare Research New Zealand Limited are pleased to report that the Company fulfilled its obligations under the Crown Research Institutes Act 1992 for the year ended 30 June 2016. The disclosures relate to Landcare Research New Zealand Limited and its subsidiaries (the ‘Group’).
The Company is a private company limited by shares and incorporated in accordance with the Companies Act 1993.
Principal activity
Landcare Research’s principal activity is to provide scientifi c research that fulfi ls our Core Purpose in accordance with the Crown Research Institutes Act 1992.
Operating results
Group revenue for the year reduced to $57.2 million from $58.4 million in the previous year. The consolidated net surplus before taxation expense for 2015/16 was $3.1 million and the consolidated net surplus after tax attributable to Parent Company shareholders was $2.2 million. Return on equity was 6.7%, compared with the target of 5.0%.
Remuneration of Directors
Directors fees are set by the shareholding Ministers annually.
| 2015/16 $ | 2014/15 $ | |
|---|---|---|
| Jane Taylor | 46,000 | 28,750 |
| Chris Downs | 23,000 | 23,000 |
| Gavan Herlihy | 23,000 | 23,000 |
| Emily Parker* | 39,000 | 37,666 |
| Paul Reynolds | 28,750 | - |
| Caroline Saunders | 23,000 | - |
| Steve Saunders | 23,000 | 23,000 |
| Victoria Taylor* | 47,000 | 47,000 |
* These include fees for Victoria Taylor as Chair of the subsidiary EMS and Emily Parker as the Landcare Research observer on the BioHeritage National Science Challenge.
Changes to Board composition
Caroline Saunders and Paul Reynolds (Deputy Chairman) were appointed on 1 July 2015.
Victoria Taylor retired from the Board on 30 June 2016.
Subsidiaries
The Directors of the two subsidiary companies are:
Enviro-Mark Solutions Limited
Victoria Taylor (retired 30 June 2016)
Paul H S Reynolds (appointed 1 July 2016)
Richard F S Gordon
Nigel W Thomson
Landcare Research US Limited
Phil B S Hart
Nigel W Thomson
Directors’ insurance
The Company has Directors’ and Officers’ insurance cover in respect of any act or omission in their capacity as a Director of the company. The Company has indemnified Directors and certain employees of the Company for costs and proceedings and for liabilities incurred by the employee in respect of any act or omission in his or her capacity as an employee of the Company. The indemnity for liabilities incurred does not extend to criminal liability or liability for breach of a fiduciary duty owed to the Company.
Dividends
No dividends have been declared or paid in respect of the 2016 financial year.
Directors’ interests
Any business the Group has transacted with organisations in which a Director has an association has been carried out on a commercial ‘arms-length’ basis.
Compliance
The Directors confirm that the Company has operated in accordance with the Crown Research Institutes Act 1992 and the Companies Act 1993 during the year. The activities undertaken by the Company in the year are in accordance with the Landcare Research Statement of Core Purpose. No written direction was received from either shareholding Minister in the year.
No directors acquired or disposed of equity securities in the company during the year; and the Board has received no notices from directors of the company requesting to use company information received in their capacity as directors that would not otherwise have been available to them.
Donations
The Group has made various donations totalling $0 during the year ($1k in 2014/15).
Auditors
John Mackey of Audit New Zealand has been appointed as the audit service provider by the Auditor-General.
The Auditor-General is the statutory auditor pursuant to section 14 of the Public Audit Act 2001 and section 21 of the Crown Research Institutes Act 1992. Their audit remuneration and fees are detailed in note 3 of the ‘Note to the financial statements’.
Events subsequent to balance date
The Directors are not aware of any matter or circumstance since the end of the financial year not otherwise dealt with in this report that has, or may have, a significant effect on the operation of the Company.
Employee remuneration
The number of employees and former employees who received remuneration and other benefits totalling $100,000 or more, in $10,000 bands, during the year were:
| Number of Employees | ||
|---|---|---|
| Total Cost to the Group | 2015/16 | 2014/15 |
| $440,000 - $449,999 | 1* | 1* |
| $420,000 - $429,999 | ||
| $230,000 - $239,999 | 1 | 1 |
| $220,000 - $229,999 | 2 | 3 |
| $210,000 - $219,999 | ||
| $200,000 - $209,999 | 4 | 3 |
| $190,000 - $199,999 | ||
| $180,000 - $189,999 | 1 | 2 |
| $170,000 - $179,999 | ||
| $160,000 - $169,999 | 2 | 3 |
| $150,000 - $159,999 | 3 | |
| $140,000 - $149,999 | 7 | 5 |
| $130,000 - $139,999 | 7 | 7 |
| $120,000 - $129,999 | 7 | 12 |
| $110,000 - $119,999 | 15 | 19 |
| $100,000 - $109,999 | 24 | 26 |
* Chief Executive of Landcare Research New Zealand Limited.
This table includes one redundancy and termination payment to employees in 2015/16 (2014/15: nil)
Signed for and on behalf of the Board