RHL directors must turn council company to profit

Ruapehu Bulletin, Volume 14, Issue 661, 5 November 1996, Page 3

RHL directors must turn council company to profit

Ruapehu Con struction Limit ed's financial losses must be turned to profit next year, and the job of seeing that it happens is that of the directors of

Ruapehu Holdings Limited. That was the decision of Ruapehu District councillors when they discussed the RCL annual report at their October meeting. RCL lost $64,072 in the

financial year ended 30 June 1996 on a turn-over of $7,869,091. Mayor Weston Kirton said they were disappointed with the end result but that more importantly, they had

been told by the directors of Ruapehu Holdings Limited would be required to "turn it (RCL) around". "We have been assured they will make the changes to make it competitive."

A report from the directors of RHL was heard earlier in the meeting with the public excluded. Cr Graeme Cosford said the council now had to give RHL directors the confidence to carry out their function. The company was worth $2,460,7 1 5 at 30 June 1996, made up of current assets of $2,075,061 less current liabilities of $ 1 ,4 1 9,966, plus

fixed assets of $2,728,748 and goodwill of $45,000, less term liabilities of $968,128. In its annual report, RCL puts the loss down to several factors including "an improvement in performance requirements of our major client" (the Ruapehu District Council) and the loss of the PDE contract which led to costs associated with redundancies.

Since June RCL has decided to sell the Ruapehu Garden Centres, with the Ohakune branch now closed. Operational matters included the development of a quality assurance system with full ISO 9002 accreditation due now, and Occupational Safety and Health Act and Resource Management Act compliance systems.