Connector News and views from the Group - NZPM
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February/March 2019
In this month’s issue:
Director’s point of view from Kathy Meads
Future Governance insight
Young Plumber of the Year
RPS dividend rates
Connector
A word from Rob Kidd
News and views from the Group.
Chairman’s update.
A very happy New Year to all and footprint throughout the • Co-operation amongst
of our NZPM co-operative country and continue to build co-operatives
members, and I trust that on our customer service offering, • Concern for community
everyone enjoyed a relaxing including the introduction of
summer break with family some of the new technology Finally, later on in this edition of
and friends. we’ve been working on. Connector there are articles from
our Appointed Director Kathy
2019 will be an interesting Both the Board and Meads, and from one of our 2018
year for our industry as the Management are genuinely Future Governance Programme
government continues to excited by the innovative work appointees Reuben Cutts. We
grapple with its issues in the that our Digital and Technology hope that Reuben’s experiences
housing market, changing team are carrying out, and this will encourage more of our
behaviours in the construction will remain a big area of focus members to put their name
market, and the flow on effects and investment for us over forward when we open our 2019
from some of the major world the next period of time. From Future Governance Programme
economies as they soften. both a member and customer applications later in the year.
Internally, we will continue perspective, there are some
to focus on building our own really exciting things coming in Kind Regards,
resilience and capability. the technology space, and NZPM
expect to be a market leader in
In December the Board
delivering a range of exceptional
approved the sale of our
service solutions.
12.5% shareholding in CMS
(Construction Marketing Services Some of the other key topics John DeBernardo
Limited) to another shareholder for the Board this year will be Chairman
of CMS. The sale of this minority developing our environmental
shareholding aligns with our and sustainability profiles as
group strategy to focus on our we seek to match best practice,
plumbing businesses, and the together with continued
final price agreed represents a development toward realising
healthy premium on NZPM’s the seven Rochdale principles
carrying value of $1.2 million. The that are enshrined in all
proceeds from the sale have co-operatives:
been applied to debt reduction. • Voluntary and open
Financially, the co-operative membership
had a solid December quarter • Democratic member control
and we expect that business • Member economic
momentum to continue in the participation
short and medium term, so 2019
• Autonomy and independence
promises to be an exciting year
for NZPM Group. We will look • Continuing co-operative
to further grow our network education, training and
information
A word from Rob Kidd.
To continue providing excellent The CQS will enable you to Thank you for your ongoing
shareholder and customer accept quotes from Plumbing support of Plumbing World, we
service across the country, I am World without your business or look forward to delivering many
pleased to confirm we now have Plumbing World having to rekey exciting initiatives for you.
50 Plumbing World branches the product information when
Regards,
operating with the two newest you accept a quote and turn it
branches opened in December into a purchase order – this will
and January located in Papamoa save time and help eliminate
(BOP) and Cromwell. human error. We expect the
CQS to be up and running by
Our 51st branch in Kumeu (West Rob Kidd
mid-year.
Auckland) is under construction Plumbing World GM
and due for opening mid-year. The Trade Purchasing App is
progressing very well and is
As I’ve mentioned over the past
currently being branch tested
months, to both support and
with customer orders in both
leverage off our strong “bricks
Auckland and Palmerston North.
and mortar” store base across
The App will enable you or your
the country, Plumbing World are
staff to purchase product from
investing significant funds into
any location utilising your mobile
developing a number of very
device. You will be able to select
exciting digital and technology
product, add an order number
platforms. These will enable you
and provide a delivery address
to more easily and efficiently
to link to our delivery service
purchase product from us
saving you valuable time (unless
and help provide significant
of course you want to come into
operating benefits for your
the store to pick the product up).
business.
At this stage we envisage the
The first two are the Commercial
initial release of the Purchasing
Quoting System (CQS) and Trade
App to be mid-year.
Purchasing App.
Redeemable Preferance Share dividend rates.
Dividend rates for Redeemable We continue to encourage NZPM will continue to monitor
Preference Shares issued by investors to consider investing market dividend yields for similar
NZPM Group Limited (NZPM) for fixed term periods of two, investments and will continue to
are set in advance of each three and four years. Investing take advice as required to ensure
quarter by the board. Dividend in fixed term dividend periods that we are offering competitive
rates are formally reviewed holds the rate steady over the returns to our investors.
annually or more frequently if investment period and only
NZPM continues to enjoy strong
there are significant changes in allows shares to be redeemed
support from investors with the
market yields. at the end of the fixed dividend
maximum new investment in
period rather than at the end
The board recently reviewed Redeemable Preference Shares
of each quarter. Dividends are
market data for similar for individual shareholders
paid quarterly for all investment
investments and concluded to (and related parties) limited to
periods.
retain rates at the current levels: $50,000 per quarter.
• Quarterly fixed dividend period All existing Redeemable
NZPM thanks all shareholders for
– 6.00% per annum Preference Share investments
their continued support of the
continue to default to the
• Two year fixed dividend period co-operative.
quarterly rate and can be
– 6.10% per annum
redeemed quarterly. To apply for
• Three year fixed dividend fixed investment periods, please
period – 6.25% per annum contract Cheryl Coulter by email
• Four year fixed dividend period (cheryl.coulter@nzpm.co.nz). Brett Cruickshank
– 6.25% per annum Chief Financial Officer
Page 2
Director’s point of view - Kathy Meads.
I was delighted to join the NZPM good shape for the upcoming achieve tangible benefits in the
Group Board in November 2018 audit, with no areas of significant near term. Examples include
as an Appointed Director, and concern being raised by Bryce – managing our stock levels in
am thoroughly enjoying the a wonderful start as a new ARC a more automated way and
challenge of learning how the Chair! getting ahead of our competitors
plumbing industry operates, in service delivery. The Digital
I have recently read a thought
which is a new business sector and Technology Team is working
provoking article about focus
for me. I have been very warmly hard on several projects which
areas for Boards, and the duty
welcomed into the NZPM will deliver more streamlined
of Directors to encourage
family by the Board and the processes using digital tools. It
Management to plan for the
staff in Auckland. I am based in is an exciting time for the Group,
longer term. The article outlines
Christchurch, and did my first and a great time for me to have
what is being labelled as the
Plumbing World branch visit at begun my journey with you all.
fourth industrial revolution or
Papanui just before Christmas.
“Industry 4.0” – this is driven I look forward to getting to know
My fellow directors are all by new technologies and more of you in 2019, through
very engaged in the Group’s what is defined as “relentless” branch visits and conferences.
activities, and have an excellent digitalisation. This includes
Best regards,
knowledge of the industry which scanning and sensing, artificial
Kathy Meads
they are happy to share with me intelligence, machine learning
NZPM Director
in spades! I have been hugely and the ‘Internet of Things’. We
impressed with the passion for are now seeing the beginnings
what NZPM is doing by everyone of a changing world—driverless
I have spoken to over the last two vehicles, drone delivery, wearable
months. I have become an avid technology and robotic teams.
recruiter for members as well We need to be constantly
– every time I meet a plumber questioning how to create value
nowadays I ask if they are a in a more digitised world.
member of the NZPM Group!
We do need to be careful to
Because of my background in distinguish between the hype
finance, I was asked to chair the of all those possibilities and the
Audit and Risk Committee (ARC). real opportunities within our
Brett Cruickshank and I recently co-operative. However, there is a
met with Bryce Henderson, lot we can do in the technology
the partner from Deloitte who space to make things work
oversees our annual audit. I am more smoothly and efficiently
happy to report that we are in for you all, and I believe we can
Young Plumber of the Year.
Plumbing World’s Young Our first branch events kicking well known brands such as Red
Plumbers Club is gearing up the competition off, will be Bull and Puma Golf.
for another fabulous Young held in Palmerston North and
We look forward to seeing you
Plumber of the Year Timaru during the first week of
during the many branch events
competition in 2019. April. For a full list of events and
held nationwide from April 2019.
to see when your local branch
Registrations are now open
is hosting theirs, you can head
and it’s free to enter. For full
to the Young Plumbers Club
terms and conditions, and to
website for details.
check out the prize pool (for
both contestants and employer) We are thankful to have such
please visit our website: great industry support from of
www.ypc.co.nz our sponsors, as well as a few
Page 3
Future Governance - Reuben Cutts.
I was gutted. My first board is the foundation of promoting process it’s not for the faint
meeting on the NZPM Future growth and opportunity. I hearted, especially for those who
Governance Programme and I believe this principle is present have little interview experience.
had contracted a heinous case within our boards culture, which My one recommendation to
of the Man Flu (my Doctor said it I think is healthy. I have observed those considering applying
was one of the worst she’d seen). situations where great empathy is to read up and gain a good
But a month later following has been present, and a genuine understanding about the basics
recovery, I was able to attend my willingness to provide guidance of governance. Without this
first meeting. through tough circumstances. knowledge, I believe some
However, I have also seen a less shareholders who possess the
Here are some observations.
empathetic approach for other acumen required to make a
These are formal affairs. Rules
situations, where a ruthless but valuable contribution as a board
and etiquette of the boardroom
calculated approach is required. member, may not necessarily
are met, discussion is kept
present well during the interview
on point, agenda is followed There is considerable emphasis
process. As a new generation
relatively strictly. Each board on risk management and
of shareholders become part
member contributing to compliance obligations, and
of NZPM, we will need a new
discussion, each with their own this part of governance is so
generation of shareholder
style, angle and value. Dale vitally important to ensure the
directors to guide us in the
Carnegie said in business “when integrity of NZPM. I have been
future, and the NZPM Future
two partners always agree, one impressed with the diligence
Governance Programme is the
of them is not necessary.” This applied to tasks that can be
perfect place to start.
holds true here. tedious and mundane. I have
been equally impressed with the
There is no lack of Regards,
emphasis placed on ensuring
encouragement to participate Reuben Cutts
an over bearing compliance and
in the discussions, and if there
risk management policy does
is some point the group has not
not hinder performance and
thought of, they are thankful
efficiency. The good news is
when it’s brought to their
that the bad news is not left out.
attention. Do not expect to get
The board wants to know the
involved in discussion about
answers, warts and all—and not
what is happening at your local
just the good stuff, and for this,
branch. Do not expect there to
the future bodes well.
be an open forum where you’ll
have the opportunity to promote So, unless you have prior board
ideas that will ultimately benefit experience, I believe the Future
your own business. This is about Governance Programme is an
the big picture. This is about the essential stepping stone on
co-operative. the path to becoming a board
member for NZPM. I would
In economics, adopting a ‘cool
encourage you to participate
head and a warm heart’ attitude
when you’re ready. The selection
Burt Munro Street Race.
Invercargill’s streets were congested with motorbike enthusiasts
from around the country as yet another successful Burt Munro
Challenge took place in the first week of February.
Plumbing World Invercargill was right on the circuit for the Burt
Munro Street Race and had over 100 people on site to see the action
in person. Invercargill branch dished up plenty of kiwi hospitality to
the locals and a few international visitors who stopped by.
Did you know - Burt Munro’s 1967 record of 183.58mph that he
recorded at the Bonneville Salt Flats in the United States
still stands today.
Page 4
Decembeard.
A challenge was put out in
December to all male staff
members from Plumbing World
and Metrix to grow a
beard for Bowel Cancer NZ’s
annual fundraiser called
‘Decembeard’. Two Marketing
team members, a couple
of branches and Garry Ivill from
Metrix helped to raise 2019–WILL
just over $3,400. In total Bowel
Cancer NZ raised just over
$16,000, it was great to know
YOU MAKE
that we contributed 20%
to Bowel Cancer NZ’s
fundraising efforts.
THE CUT?
PRIZES VALUED OVER
$25,000
A special mention goes to
Garry Ivill who single handedly
raised just over $2,100 and our
Pukekohe Branch who raised
just over $1,000. TO BE WON
INCLUDING A TRIP FOR TWO
Bowel Cancer NZ were very EN TO ANY AP
PR
TO BEIJING, CHINA IN 2020
• OP EN
pleased to announce that they R T
E
Hayden Findlay 2018 Young Plumber of the Year winner
IC
ND
E,
IN LAYER 31 & U
L IC
exceeded their fundraising FREE – Eco Plumbing & Gas Ltd
ENSED OR CER
target of $15,000, which will TO ENTER
A
DR
go directly towards educating
ENTER NOW AT YPC.CO.NZ
TIF
OR
Y
IN
ER PL G
ITT UMB
ER, GASF
New Zealander’s on the early
TH A NKS TO OU R S PONS OR S
symptoms of bowel cancer as
well as providing educational
resources and support services.
SUPPORTED BY: Allproof Industries, Auckland Master Plumbers, Bromic Ltd, Greens Tapware, Heron Plumbing Ltd, HiFlo Plumbing, Hutt
Gas & Plumbing Systems Ltd, Peter Jackson Plumbing, Precision Group, Toto and Whitehead Plumbing & Gas Ltd
Shareholder loyalty.
10 10
YEARS YEARS
Nick from Gas ApplianceSpecialists, New Lynn, Auckland
Brett from Watkins Plumbing, Henderson, Auckland Left to Right: Jared Williams (Area manager), Nick Ray (owner),
Boaz Peach (Branch manager)
Page 5
Metrix update.
The 800 square metre Metrix Architects and interior designers is an initial conversation and
architecturally designed use our showroom and our some fundamental rules of
showroom is full of displays of expertise to turn their plans and engagement that need to be
mostly European branded front their clients’ dreams into a reality. agreed up front, and from there
of wall bathroomware. we can work together for you
NZPM shareholders can utilise
and your client.
Our major brands are all this resource as well. Any
represented – Duravit basins, shareholders anywhere in If you have an opportunity
toilets, baths and furniture; New Zealand, who have clients please phone Garry Ivill, General
Dornbracht tapware from building or renovating a large Manager of Metrix, on
Germany; Vola tapware from house, can introduce them to 021 494949 to discuss how
Denmark; Kaldewei baths and Metrix, and we will look after we can help.
basins from Germany; Paini the specification and product
tapware; Valsir inwall cisterns; selection. We will also reward
and Glass Design basins from the shareholder for introducing
Italy, plus several other brands. their client to us. All it takes
Metrix app competition winner.
From October 2018 through to Ray is one of hundreds of NZPM
just before Christmas, Metrix shareholders who downloaded
offered the chance for NZPM the Metrix app and are using it
Shareholders and their staff to regularly as an information tool
win a $500 Prezzy card if they in their business.
downloaded our new Metrix app.
You can download the app by
We are pleased to announce that searching “Metrix New Zealand”
the lucky winner is Ray Shepherd on the App Store or Google Play.
from Foreshore Plumbing on Fill out the online form and you
Auckland’s North Shore. Ray will be underway.
received his $500 Prezzy card
two days before Christmas and is
planning to use it on their family
fishing trip up north.
NZPM’s Mission
To contribute to our members’ and customers’ business Part of our NZPM Co-operative
success by representing their interests and delivering
performance excellence. Page 6
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