The Wiri Licensing Trust proudly opened its latest bar – Woodside in early September. Woodside is South Auckland’s first gastro- pub and not only offers local people great food and hospitality but also includes a function centre, garden bar and gaming lounge. This summer Woodside will be hosting top-line live music acts. Check out our latest menu at woodside.org.nz or just come to discover the what is on offer. Woodside is located at 2 Ronwood Avenue just behind Krispy Kreme and is open for brunch from 8am on Saturdays and Sundays and for lunch and dinner seven days a week. Wiri Licensing Trust Annual Report 2017/18 Woodside – South Auckland’s newest gastro-pub opens in Manukau What Is The Wiri Licensing Trust? The Wiri Licensing Trust is a community owned business which runs bars and owns commercial property in the Manurewa and Manukau communities. The Trust is governed by six trustees who are elected by the voters at the time of the Council elections every three years. The Trust was founded in 1969 and is constituted under the Sale and Supply of Alcohol Act 2012. By law it is required to run bars and visitor accommodation but is not responsible for liquor licensing which is the responsibility of District Licensing Agency – a branch of Auckland Council. Woodside’s Executive Chef Paul Rumary and Venue Manger Ben McKinlay draw from their extensive hospitality experience to offer great menus and service at South Auckland’s first gasto-pub. Wiri Trust continues its sponsorship of the Northern Stars netball team The Northern Stars are South Auckland’s professional netball franchise which plays in the ANZ Premiership New Zealand netball competition. The Stars were based at Pulman Arena during the 2018 and were sponsored by the Wiri Licensing Trust for the second year. ‘Supporting women’s sport and teams which profile South Auckland in national competitions are important priorities for the Wiri Licensing Trust’ says trustee Kim Dennis. ‘While the Stars had a mixed season during 2018 they have gathered huge support from South Aucklanders and have lifted the reputation of netball across our communities’ she says. The Wiri Licensing Trust will continue to sponsor the Northern Stars in 2019 and is looking to host functions for the team and its supporters at its newly opened bar Woodside. ‘We are proud to be involved with the Stars and are looking forward to being able to support them more during 2019’ says Kim Dennis. Notes to the Summary Financial Statements For the year ended 31 March 2018 These are the summary financial statements of Wiri Licencing Trust for the year ended 31 March 2018. The specific disclosures included in these summary financial statements have been extracted from the full annual financial statements dated 22 August 2018. This summary financial report cannot be expected to provide as complete an understanding as provided by the full financial statements. An unqualified audit opinion has been received on the full financial statements for the year ended 31 March 2018. A copy of the full financial statements for Wiri Licencing Trust for the year ended 31 March 2018 can be obtained by contacting Alan Johnson, Chairperson, Wiri Licencing Trust, PO Box 98833, South Auckland Mail Centre, Manukau City 2241, New Zealand or by visiting http://www.wiritrust.org.nz/reports.html. This summary financial report has not been audited. These summary financial statements were approved for issue by the Board of Trustees for Wiri Licencing Trust on 22 August 2018. These are the financial statements of Wiri Licensing Trust. Wiri Licensing Trust is a Licensing Trust constituted under and governed by the Sale and Supply of Alcohol Act 2012 and domiciled in New Zealand. Reporting Entity The financial statements are of a single trust which has been designated a profit orientated entity. The objective of the Trust is to maximise profits from its tavern & property portfolio to enable it to distribute as much funds as sustainably possible to its community. The trust owns commercial property at 639 Great South Road Manukau City & 185-187 Great South Road Manurewa. They also own a tavern trading as ‘Our Local’ situated at 254 Roscommon Road Wiri. WIRI LICENCING TRUST Summary Financial Statements For the year ended 31 March 2018 Statement of Compliance These financial statements comply with FRS43: Summary Financial Statements. The presentation currency is New Zealand dollars, rounded to the nearest whole dollar. The full financial statements upon which these Summary Financial Statements are based have been prepared in accordance with the requirement of the Sale and Supply of Alcohol Act 2012 and Generally Accepted Accounting Practice in New Zealand. The Trust is eligible and has elected to report in accordance with Tier 2 for-profit Accounting Standards (NZ IFRS RDR) and has applied disclosure concessions. These financial statements are the first financial statements presented in accordance with the Tier 2 for profit accounting standards. Specific Accounting Policies All other specific accounting policies have been applied on the same basis as those used in the full financial statements. Revenue Revenue comprises the fair value for the sale of goods and services, excluding Goods and Services Tax and discounts. Revenue is recognised as follows: Sales of Goods Sale of Goods are recognised when the Trust has delivered a product to the customer. Retail sales are usually in cash or by EFTPOS. The recorded revenue is the gross amount of the sale. Rental Income Rental income is recognised on a straight line basis over the lease term. Gaming Machine Income Gaming machine income is recognised on a commission payment of 1.28% of total gaming turnover up too and not exceeding 16% of Gaming Machine Proceeds (GMP). Property, Plant & Equipment Additions The cost of an item of property, plant and equipment is recognised as an asset if, and only if, it is probable that future economic benefits or service potential associated with the item will flow to the Trust and the cost of them can be measured reliably. In most instances, an item of property, plant and equipment is recognised at its cost. Where an asset is acquired at no cost, or for a nominal cost, it is recognised at fair value as at the date of acquisition. Subsequent Costs Costs incurred subsequent to initial acquisition are capitalised only when it is probable that future economic benefits or service potential associated with the item will flow to the Trust and the cost of the item can be measured reliably. Disposals Gains and losses on disposals are determined by comparing the proceeds with the carrying amount of the asset. Gains and losses on disposals are included in the statement of comprehensive income. When revalued assets are sold, the amounts included in asset revaluation reserves in respect of those assets are transferred to retained earnings. Depreciation Depreciation of property, plant and equipment is calculated using diminishing income tax value. The rates are as follows: Buildings – Roscommon Rd & Great Sth Rd 4% DV Depreciated using remaining useful life Plant & Equipment 7.5 - 67% DV Depreciated using DV income tax value Fixtures, Fittings & Office Equipment 7.5 – 87.50% DV Motor Vehicles 36% DV Revaluation Operational land & buildings are revalued on a yearly valuation cycle on the basis described below. All other asset classes are carried at depreciated historical cost less impairment. The carrying values of revalued items are assessed annually by independent valuers to ensure that they do not differ materially from fair value. If there is evidence supporting a material difference, then the asset is revalued. Operational land & buildings are valued at fair value as determined from market-based evidence by an independent valuer. Assumptions include willing buyer/seller and a reasonable period within which to negotiate a sale. The method of valuation is market value due to site location, its good condition and the performance of the bar operation. The most recent valuation was performed by Michael Clark for Seagar & Partners at 31 March 2018. Investment Properties Investment Properties Land and Buildings are valued annually at fair value. The valuation was carried out by Michael Clark for Seagar & Partners at 31 March 2018. Gains or losses arising from the fair value of Investment Properties are recorded in the Statement of Comprehensive Income. Contingencies On April 2004 the Trust entered into a Deed of Settlement with Manukau City Council (now Auckland Council). It was agreed that the Trust is indebted to the Council for 50% of the market value of its investment property situated at 639 Great South Road Manukau, being areas A to H and W. However the Council agreed to forebear from making demand for repayment unless the Trust defaults by: • Selling all or part of the land without the Council’s written consent. • Borrowing, secured by first mortgage secured on the land, an amount of more than 50% of the current market value of the land. • Winding up the Trust or appointing a provisional liquidator or statutory manager for the Trust. • Failing to meet a payment or obligation under the Deed of Settlement and failing to remedy the breach within 21 days notice from the council. This contingency is calculated to be $14,932,500 ($12,090,000 as at 31 March 2017) being 50 % of the market value as recorded in the Statement of Financial Position. A full copy of these accounts can be found on the Wiri Licensing Trust’s website at http://www.wiritrust.org.nz and are available in hard copy at the Trust’s office at 254 Roscommon Road Wiri. Statement of Financial Position As at 31 March 2018 2018 2017 Current Assets 324,024 235,179 Non-Current Assets 35,050,940 26,825,466 Total Assets 35,374,964 27,060,644 Current Liabilities 12,380,901 2,265,239 Non-Current Liabilities 1,281,591 5,355,649 Total Liabilities 13,662,492 7,620,888 Net Assets 21,712,473 19,439,757 Trust Equity 20,086,030 18,358,010 Asset Revaluation Reserve 1,626,443 1,081,747 Total Equity 21,712,473 19,439,757 Statement of Changes in Equity For the year ended 31 March 2018 2018 2017 Equity at Start of Year 19,439,757 18,261,479 Total Profit After Tax 1,728,020 1,052,026 Other Comprehensive Income 544,696 126,251 Total Equity at End of Year 21,712,473 19,439,757 Statement of Comprehensive Income For the year ended 31 March 2018 2018 2017 Bar Revenue 398,077 403,258 Other Revenue 1,567,815 1,507,284 Sponsorship (52,904) (58,086) Other Expenditure excluding finance costs (2,043,798) (1,291,784) Finance Costs (546,621) (324,628) Operating Surplus (677,431) 236,044 Investment Revaluation Gain / (Loss) 2,391,104 745,596 Net Surplus / (Deficit) before tax 1,713,674 981,640 Tax Expense (14,347) (70,386) Net Surplus / (Deficit) after tax 1,728,020 1,052,026 Gain on Property, Plant & Equipment Revaluation 536,800 98,600 Tax on Revaluation 7,896 27,651 Total Comprehensive Income 2,272,716 1,178,278 Statement of Cash Flows For the year ended 31 March 2018 2018 2017 Net Cash Flows from Operating Activities (41,537) 244,754 Net Cash Flows from Investing Activities (5,851,664) (427,114) Net Cash Flows from Financing Activities 5,960,117 (73,901) Net Increase / (Decrease) in Cash 66,916 (256,261) Cash and Cash Equivalents at Beginning of Period 85,988 342,249 Cash and Cash Equivalents at End of Period 152,903 85,988 Net Change in Cash for the Period 66,915 (256,261)