Financial performance summary
Daniel Than, recipent of a QEII technicians´ travel award
The accounts (for Parent and Consolidated Group) and Audit Report are in Part II of our Annual Report and also available in full on our website. Part I and Part II together constitute our statutory annual reporting responsibilities.
SUMMARY TABLE OF FINANCIAL PERFORMANCE INDICATORS
| 2009 | 2010 1 | 2011 | 2011 | 2012 | |
|---|---|---|---|---|---|
| Achieved | Achieved | Target | Achieved | Target | |
| Revenue, $m | 60.25 | 61.66 | 64.29 | 63.44 | 65.91 |
| Net revenue, $m | 53.13 | 54.82 | 57.57 | 56.69 | 59.13 |
| EBIT, $m | 2.36 | 2.19 | 3.05 | 2.93 | 2.10 |
| EBIT margin | 3.9% | 3.6% | 4.7% | 4.6% | 3.2% |
| Total assets, $m | 48.35 | 50.31 | 49.24 | 50.91 | 52.87 |
| Return on equity | 5.3% | 6.4% | 7.0% | 8.4% | 5.4% 2 |
| Dividend, $m | 0.1 | 0.5 | 0.7 | 0.7 | 1.1 |
| Equity ratio | 58% | 58% | 61% | 53% | 52% |
| Gearing 3 | 13% | 0% | 0% | 0% | 6% |
| Interest cover | 7.2 | 11.1 | 10.2 | 13.2 | 9.0 |
1 The 2010 return on equity and equity ratio exclude the impact of 0% building depreciation announced in the Government’s May 2010 Budget.
2 The 2012 target is lower because we plan significant reinvestment in the organisation.
3 2009 gearing is calculated on gross debt. For 2010 onwards, gearing is calculated based on net debt.
Revenue:
Includes science research, contract work for 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 finance leases, $0.3m for 2011.
EBIT:
Earnings before interest and tax, and after committed business development expenditure and commercialisation expenditure. It excludes restructuring costs.
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:
Average shareholders’ funds ÷ average total assets.
Gearing:
Financial debt includes all interest–bearing liabilities. Gearing = net financial debt ÷ financial debt plus shareholders’ funds, expressed as a percentage. (The Minister of Finance and the Minister of Science and Innovation 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.
8.4% return on equity exceeded our target
Where our revenue comes from
- Ministry of Science and Innovation (MSI) 44% – contestably funded research programmes, negotiated funding and long–term OBIs
- MW Press & sundry 2% – Manaaki Whenua Press is our natural history and science book publishing and retailing business centre
- Private & business sector 10% – principally contracted work for businesses and private organisations
- Universities 1% – contracted services, some paid lecturing by our staff, and rentals for university staff located in our buildings
- Local government 3% – contracted work for regional, district and city councils
- Central government 15% – services contracted by government departments including DOC, MfE and MAF
- Sirtrack 7% – wholly owned subsidiary, which develops and produces telemetry equipment for tracking wildlife
- CRIs 6% – research subcontracted to us in collaborative programmes
- International 2% – development projects funded by donor agencies, international consultancy projects
- Capability Fund (MSI) 10% – funding used to maintain existing skills and to develop new science and technology capability
Where our revenue goes
- Investment 2% – support for technologies and services including those advancing through our commercialisation pipeline
- Other operating costs 21% – includes electricity, carbon credits, software licences, insurance, consumables, and lease costs
- Interest & non–operating costs 0.3%
- Depreciation 6% – includes accounting depreciation on buildings, science equipment and computers
- Travel & vehicles 5% – 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
- Subcontracts 11% – research subcontracted to other research providers, including CRIs and universities in collaborative research programmes
- Staff training 1% – includes conferences, training courses and support for postgraduate study (2.2% of the total payroll)
- Employee remuneration 49% – includes staff in management, science, support roles, commercial business and Sirtrack