ATS Newsbrief September 2013
We are at that time of the year where many agricultural service companies have (or are in the process of) disclosing their financial performance for the past 12 months. With spring virtually upon us, it’s a good time to reflect on the year that was from a financial reporting perspective. Rural suppliers were Neal Shaw, Group CEO hampered by unfavourable weather conditions in many regions, flagging livestock prices and a tough economic climate; expectations amongst the rural sector for the coming season remain high. Some of this will be due to the predicted increase in the pay out to dairy farmers. Generally, people perceive there is still a lot of money to be made in the rural supply business, but as the first financial results for 2012/13 were released, reality suggests that beneath the surface, the sector may well be struggling. For the first time in its 35-year history, fertiliser co-operative Ravensdown announced it would not be paying a rebate to its farmer shareholders after its pre-tax profits slumped to $6 million for the year ended May 31, a drop of almost 90 per cent on the previous year. A number of factors influenced this result and steps have been taken to divest of some Australian business ventures, currency and climate also impacted on this result. In line with earlier predictions, PGG Wrightson recorded a drop in operating earnings before interest, tax and depreciation, and amortisation to $45.8 million for the year ended June 30, down $55m on a year earlier. A write down of approx $321m in goodwill ($250m of that dating back to the 2005 merger) produced overall accounting loss of $306.5m, without which the after-tax profit would have been $14.6m, a drop of 40 per cent. The goodwill write down is a non cash measure to even up the balance sheet. While livestock revenue fell and its Australian seed business took a hit, retail, wool and irrigation earnings improved. At the time of writing this article Ballance Fertiliser has provided the one bright note so far, along with Fonterra’s promised 80 cent pay out increase. Ballance reported a record trading result of $92.6 million for the 2012–13 year ending May, up on last season’s $77.3m, despite farmers buying less fertiliser and falling sales during the drought. On face value it looks as though Ballance has had a fantastic year. From an ATS perspective sales have increased and a profit was made, but the true position won’t be known until the financial reports are released next month. The rural supplies sector is a high cost distribution model requiring significant investment in infrastructure while operating at low margins. I’m sure we will continue to see varied financial performances and restructuring as businesses look for ways to improve their financial performance.
Upcoming Events
17 September, 22 October & 19 November Farm Safety Manual and Training for Ruralco Cardholders For more information or to RSVP, call Unique Solutions on 03 423 2273 or online at www.ats.co.nz/farmsafety
28 October Labour Day ATS will be closed 26–28 October. If members have any emergency requirements the duty manager can be reached on 03 307 5100 or 027 487 6865.
Upcoming Industry Events
24 September FAR Farmer Day A chance to meet seed research experts from across New Zealand and the world at the FAR Farmer Day being run in conjunction with the International Herbage Seed Group Workshop at Methven (22–26 September). Registrations are limited and close on Tuesday 17 September. For more information visit www.ihsg.org
30 September Mid Canterbury Biz Start Sessions in the Biz Start groups will focus on building business and people management skills to equip you for senior level management positions, or owning or running your own farm business. For more information, contact Natalia Benquet on 021 2877 059 or natalia.benquet@dairynz.co.nz
22 October National Ewe Hogget Competition 2013 winner’s field-day For more information, please contact Ian Knowles on 027 4968 496 or email ian.knowles@beeflambnz.com.
1 & 2 November Ashburton A&P Show
13–15 November Canterbury A&P Show
50 CELEBRATING
YEARS
ATS sub accounts—making accounts easy ATS sub accounts provide members with the opportunity to create an account under their main ATS accounts, saving you time and money when it comes to doing your bookwork. A sub account allows you to separate your personal spending from your main farm account, or to create separate accounts for different enterprises within your farming operation. Sub accounts are attached to a shareholder account, and each application must be signed by the shareholder. The shareholder is the account owner and is ultimately liable for any non-payment. A shareholder account can have a number of sub accounts attached to it—including family members, a farm manager or an employee. Sub accounts receive the same discounts and benefits and operate in the same way as shareholder accounts, but no shares are purchased and there are no rebates paid on these accounts. However, spend from sub accounts are included in the shareholder’s account when calculating rebates. The monthly invoice is sent direct to the account holder giving them extra privacy, and payment is made by direct debit from the account holder’s bank account on the 20th of each month. For further information, please contact the Customer Service team on 0800 BUY ATS (289 287). Reminder: Shareholders are responsible for all sub accounts connected to their main account, whether the person is still in their employment or not. If you are unsure of exactly what sub accounts are connected to your main account, please contact ATS Administration on 03 307 5100 to verify.
Use your Ruralco Card today It’s everything ATS members appreciate plus some. The only change for members is that your Ruralco Card will replace your ATS Card. The rules around its use remain the same, so put the Ruralco Card in your wallet, cut up your ATS Card and away you go. If you have not received your Ruralco Card yet or need extra cards for your account, please contact ATS on 0800 BUY ATS (289 287). The Ruralco Card is accepted at Mobil Service Stations throughout the South Island. Purchasing is as simple as swiping your card, hitting “credit”, entering your pin, and collecting your receipt. However, currently there are some Mobil Service Stations that have unattended payment terminals for afterhours purchases, or on their Truck Stop pumps. To purchase fuel at these unattended payment terminals you will need a Mobilcard (either an ATS Mobilcard or a Ruralco Mobilcard). Ruralco is working to enable you to use your Ruralco Card at Truckstops and unattended payment terminals. We will advise you when this is complete. Customer Service Centre personals will be calling you to update your Mobilcard details. For more information regarding your Ruralco Card or to check out new suppliers, please visit www.ruralco.co.nz.
Ashburton Trading Society Ltd 97 Burnett Street, PO Box 131 Ashburton
Farm Safety Training for Ruralco Cardholders
Ruralco Supplier updates
Today’s farmers and land owners are required to actively manage all aspects of health and safety around the farm. To assist with this process Ruralco plans to provide cardholders with access to a farm safety manual and relevant training. Upon completion of the training, members will be able to apply for a discount on their ACC levies.
Check out www.ruralco.co.nz for the list of new Ruralco suppliers
Training dates are 17 September, 22 October & 19 November 2013 for $550 (GST and member discount inclusive). Seating is limited, so get in fast. For more information, please contact Unique Solutions on 03 423 2273 or email cindy@uniquesolutions.co.nz. Or you can reserve your spot online at www.ats.co.nz/farmsafety.
Tel 03 307 5100 Fax 03 307 6723 ats@ats.co.nz
www.100percent.co.nz 10% discount off retail prices Greymouth 111 Mackay Street, Greymouth Tel: 03 768 5029 greymouth@ellerys.co.nz Hokitika 11 Weld Street, Hokitika Tel: 03 755 8086 hokitika@ellerys.co.nz Westport 163 Palmerston Street, Westport Tel: 03 789 7349 westport@ellerys.co.nz
NORTH CANTERBURY HUNTING & FISHING
Is your Approved Handler Certificate Valid? Your Approved Handler Certificate may be expired or is about to expire. Please contact Peter Jacob on 03 307 5124 or 0800 BUY ATS (289 287) and he will be able to help you with the renewal process.
305 Flaxton Road, Rangiora Tel: 03 313 1313 7% on rods, reel repairs, firearm gunsmithing and retail items 5% on firearms and ammunition Licences and sale items—Nett Exclusive to Ruralco
OXFORD MOTOR COMPANY
157 High Street, Oxford Tel: 03 312 4007 oxfordmtr1@clear.net.nz 5% discount on labour
STIHL SHOP TIMARU
Southern Cross Insurance Premiums Southern Cross advises ATS members that from 1 June 2013 insurance premiums will be charged monthly instead of quarterly. This will allow any credits to members from Southern Cross to be processed more efficiently while spreading payments over 12 payment periods instead of four. If you have any concerns regarding this change, please contact ATS on 0800 BUY ATS (289 287).
Are you still using your ATS Card?
Ruralco Mobil Card
NEW SUPPLIERS
100% ELLERYS
It’s time to make the move to your Ruralco Card today as ATS Cards will soon be deactivated. If you have not yet received your Ruralco Card, or would like to order more, please contact ATS on 0800 BUY ATS (289 287).
115 Hilton Highway, Timaru Tel: 03 6866 857 Timaru@stihlshop.co.nz 6% discount on Stihl Saws and capital products
THE FEED SHACK
44 Newham Street, Rangiora Tel: 03 313 3016 www.thefeedshack.co.nz 2.5% discount on stock food 5% discount on accessories
TIMARU UPHOLSTERY CENTRE
10 William Street, Timaru Tel: 03 6880 637 timaruupholstrey@xtra.co.nz Additional Branches
BNT
www.bntnz.co.nz Canterbury / Christchurch 801 Wairakei Rd, Burnside, Christchurch Ph: (03) 366 5089 Sydenham 192D Wordsworth St, Sydenham, Christchurch Ph: (03) 379 0640 Hornby 128 Waterloo Rd, Hornby Ph: (03) 344 0145 North Canterbury / Rangiora 319 Flaxton Rd, Rangiora Ph: (03) 310 6159 South Canterbury /Timaru 4 Barnard St, Timaru Ph: (03) 688 5550 West Coast /Greymouth 6 Charles, O’Connor St, Greymouth Ph: (03) 768 0914
www.ats.co.nz