Dannevirke: Scanpower enjoys 66pc earnings rise

Scanpower chief executive Lee Bettles (left) with company chairman Allan Benbow.

Customer-owned Scanpower has delivered superb year-end results, Stuart Smith, the deputy chairman of the Customer Trust, said at Tuesday night's annual meeting.

"For the company to have a 66 per cent increase in earnings over the previous year and to be achieving these results in the current climate is nothing short of remarkable," he said. "This is truly a magnificent result."

Scanpower's earnings for the 2015/16 year were $3.77 million, underpinned by a strong year-on-year revenue growth of 18.3 per cent, increasing from $18.55 million to $21.94 million.

Allan Benbow, Scanpower's chairman, said the company had a solid year.

"It's exciting," he said. "Our core business of providing reliable electricity throughout the network has been achieved and our network prices are at the bottom end of the scale."

Mr Benbow said Scanpower's revenue from non-network activities were now very significant.

Revenue from the power line contracting business grew by 46 per cent; there was a 132 per cent increase in rental income from their investment property portfolio at Oringi Business Park and a 15 per cent growth in the plumbing and electrical contracting business.

"Our contracts are solid and taking the opportunity of restructuring and leasing out our cold store at Oringi has provided Scanpower with a steady, reliable income," he said.

"Our Oringi Business Park is full, which is heartening, and Intrepid Semiconductor owner, American Randy Crockett, is champing at the bit to get here."

Last year Mr Crockett signed a six-year contract with Scanpower for the lease of the former freezing works boning room as a base for his company's diffusion plant - part of its enormous semi-conductor empire. Crockett's United States company, Trion, specialises in plasma etching and deposition systems with the US Government, Intel, Samsung, Nasa and IBM among its clients.

And with Scanpower's excellent financial performance this year, chief executive Lee Bettles has told the Dannevirke News that customers will once again receive their annual discount. "At this stage I would anticipate the discount will be a bit higher than last year, which was $250 per household," Mr Bettles said.

Scanpower customer discount:

* In August, Scanpower will finalise the total amount and structure of the network discount which will be announced at the end of August.

* The discount will appear on customers' power accounts over September/October (individual timing will depend on customers' electricity retailer billing cycles).

Fast facts:

* Scanpower owns and operates an electricity network supplying 6720 customer installations in the Tararua, including Dannevirke, Woodville, Norsewood and outlying rural areas.

* 82,516,619 units of electricity (KWh) are carried across the Scanpower network.

* The company has $56.55 million of total assets.

* Scanpower also operates other business units including power line contracting, Treesmart, plumbing and electrical contracting and property development, and has a one-third share in the Kiwi Sock Company at Norsewood.