$5 Million Milestone Reached by Canterbury Business Recovery Trust
Thursday, 7 June 2012
A major milestone has been reached by the Canterbury Business Recovery Trust, with the Trust’s distributions now topping $5 million.
The Canterbury Business Recovery Trust has distributed $5,034,078 to 325 earthquake-affected Canterbury businesses. The Trust, which is administered by Recover Canterbury, provides financial assistance to viable businesses that have strong potential for recovery and future growth.
To date $5.4 million has been donated to the Trust. Taking into consideration repayment of loans, on-going donations and the refunding of GST, the Trust has just under one million dollars left to distribute.
Donations are continuing to flow into the Trust, including some from previous Trust fund recipients.
Recover Canterbury Communications Manager Pip Tschudin says they always hoped that businesses that received grants from the Canterbury Business Recovery Trust would repay the favour when they could, so that funds can be recycled and given to other businesses in need.
“To see businesses that we have helped now back on their feet and in a financial position where they are choosing to give something back to the Trust is so heartening, and is a real indication of the value the business places on the support received from the Trust and the wider Recover Canterbury team,” says Mrs Tschudin.
The key expenses businesses require assistance with have remained consistent, with $1.9 million given towards sales and marketing costs and $1.8 million towards relocation and fit-out costs. The Trust has distributed $551,000 towards operating costs, $509,000 towards costs associated with business development and $176,500 in bridging finance. Other smaller expenses include recruitment and training and development.
Iconic Ice-Cream Manufacturer Eyes Growth thanks to Trust Funding
Deep South Ice Cream is eyeing up North Island growth opportunities, thanks to a grant from the Canterbury Business Recovery Trust.
Just last week the company received a grant from the Trust, which will go towards purchasing new freezer units and point of sale materials for outlets in the both the South Island and North Island.
Deep South Ice Cream lost more than $200,000 of income when the Christchurch earthquakes forced the closure of a number of its outlets. The company is looking to replace that lost income by increasing its retail outlets in both the South Island and North Island, but each new outlet requires an investment of up to $6,000 in freezers and point of sale materials.
“Our aim is to gain 20 new outlets throughout New Zealand with the majority of these being in the North Island and the support from the Canterbury Business Recovery Trust and the Recover Canterbury team should help us get there. It’s definitely been a huge boost,” says Deep South Ice Cream Co-owner / Director Mike Killick.
Despite the disruption Deep South Ice Cream has retained all its 30 staff and if the company’s growth plans come to fruition they will be looking to increase staff numbers and production in spring.
While expanding nationally Deep South Ice Cream is also investing in its international markets.
“In 2010 we were sending one 20 foot container of our premium ice-cream to Japan and China every 7 to 8 weeks. Today we are sending one container every 2 to 3 weeks and by the end of the year we are hoping to send one a week,” says Mr Killick.
Recover Canterbury Communications Manager Pip Tschudin says Deep South Ice Cream is an example of a viable businesses with strong potential for growth both nationally and internationally.
“Deep South Ice Cream is investing significantly into its own future, particularly in regard to export opportunities. By supporting this business to rebuild its national customer base we are helping accelerate its recovery and supporting its long term growth, which will return huge spin-offs for the wider Canterbury economy and community,” says Mrs Tschudin.