Financial summary
Papua New Guinean beetle. Image – Stephen Moore.
This year, we adopted International Financial Reporting Standards (IFRS), and our accounts were audited by Audit New Zealand. The accounts (for parent and consolidated group) and audit report are available in full on our website. A limited number of these accounts were printed for tabling in Parliament. Those accounts plus this summary sustainability report constitute our statutory annual reporting responsibilities.
Key financial viability indicators & targets for consolidated group
| 2006* Achieved | 2007* Achieved | 2008** Target | 2008** Achieved | 2009 Target | |
|---|---|---|---|---|---|
| Revenue, $m | 51.81 | 52.76 | 57.91 | 56.07 | 57.49 |
| Net revenue, $m | 45.94 | 46.43 | 51.06 | 49.52 | 50.31 |
| EBIT, $m | 1.07 | 1.70 | 1.87 | 1.43 | 0.8 |
| EBIT margin (after commercialisation/ investment) | 2.1% | 3.2% | 3.2% | 2.5% | 1.4% |
| Total assets, $m | 41.46 | 42.28 | 44.06 | 44.58 | 45.41 |
| Return on equity (NPAT) | 2.8% | 3.4% | 3.8% | 2.5% | 1.2% |
| Equity ratio | 58% | 56% | 54% | 60% | 59% |
| Gearing | 18% | 19% | 21% | 13% | 13% |
| Interest cover | 3.3 | 4.6 | 4.3 | 3.4 | 2.2 |
* Prepared under previous generally accepted accounting practice.
** Prepared under NZ IFRS
Revenue: Includes science research, contract work for the government and commercial clients, royalties, licence fees etc., plus income from the sale of product and the lease of assets. It excludes income from interest on investments and from fi nance leases.
EBIT margin: Earnings before interest and tax, and after committed business development expenditure and commercialisation expenditure. It excludes restructuring costs.
Return on equity: Return on equity = NPAT ÷ average shareholders’ funds, expressed as a percentage. NPAT is net profit after tax. Shareholders’ funds include share capital and retained earnings.
Equity ratio: Equity ratio = average shareholders’ funds ÷ average total assets.
Gearing: Financial debt includes all interest–bearing liabilities. Gearing = financial debt ÷ financial debt plus shareholders’ funds, expressed as a percentage. (The Minister of Finance and Minister of Research, Science and Technology each hold 50% of the shares on behalf of the public.)
Interest cover: Interest is the cost of debt and financial leases. Interest cover = EBIT ÷ interest.
The following graphs are not part of the audited fi nancial statements and have not been reviewed and verified by Audit New Zealand. We include the information for stakeholder interest only.
Where our revenue comes from (for year ending 30 June 2008)
- Foundation for Research, Science and Technology (FRST) 46% – contestably funded research programmes, negotiated funding and long–term OBIs
- Capability Fund 8% – MoRST funding used to maintain existing and develop new science & technology capability
- CRIs 5% – research subcontracted to us in collaborative programmes
- Universities 3% – contracted services, some paid lecturing by our staff, and rentals for university staff located in our buildings
- International 2% – development projects funded by donor agencies, international consultancy projects
- Central government 9% – services contracted by government departments including DOC, MfE and MAF
- Local government 3% – contracted work for regional, district and city councils
- Private & business sector 12% – principally contracted work for businesses and private organisations including the Animal Health Board
- Sirtrack 9% – wholly owned subsidiary, which develops and produces telemetry equipment for tracking wildlife
- MW Press & sundry 2% – Manaaki Whenua Press is our natural history and science book publishing and retailing business centre
Where our revenue goes
- Science payroll 39% – includes staff in science, technical and science support roles
- Support payroll 11% – includes staff in management, information services, administration, HR, fi nance and communication roles
- Staff training 2% – includes conferences, training courses and support for postgraduate study (3.1% of the total payroll)
- Subcontracts 12% – research subcontracted to other research providers, including CRIs and universities in collaborative research programmes
- Investment & commercialisation 4% – support for technologies and services including those advancing through our commercialisation pipeline
- Travel & vehicles 6% – all vehicle and air travel by our staff , including the cost of leased vehicles. Landcare Research runs a mixed fleet of vehicles including 4WD and quad bikes for fieldwork, and cars and vans for road use
- Other operating costs 17% – includes electricity, carbon credits, software licences, insurance, consumables, and lease costs
- Interest & non–operating costs 1%
- Depreciation 7% – includes depreciation on buildings, science equipment and computers
- Taxation 1%
