Sustainability Indicators
Aim: The following Sustainability Indicators aim to demonstrate how we achieve financial strength so that we can deliver sustainable outcomes while maximising the triple-bottom-line return to our shareholder.
Return on Assets
Where we would like to be:
To be an industry leader by maximising our return on assets invested.
Where we are:
| Return on Assets % | 2002-03 | 2003-04 | 2004-05 | 2005-06 |
|---|---|---|---|---|
| Actual | 16.9 | 15.4 | 11.8* | 9.4 |
| Budget | 13.8 | 11.5 | 11.6 | 9.0 |
*From 2005-06 companies are required to report using Australian Equivalents to International Financial Reporting Standards. As a result, 2004-05 financials have been restated. All years prior to this, are reported under Australian Generally Accepted Accounting Principles.
Results:
Lower return on assets can be attributed to lower profit, due to lower area contributions, and higher finance charges and depreciation.
Where we are headed:
Our aim is to continue maximising our return on assets.
Profit After Tax
Where we would like to be:
To achieve our budgeted profits after tax every year while ensuring that we meet our regulatory requirements.
Where we are:
| Profit after tax $ million | 2002-03 | 2003-04 | 2004-05 | 2005-06 |
|---|---|---|---|---|
| Actual | $72.7 | $67.8 | $49.4* | $38.8 |
| Budget | $55.7 | $46.7 | $51.8 | $40.5 |
*From 2005-06 companies are required to report using Australian Equivalents to International Financial Reporting Standards. As a result, 2004-05 financials have been restated. All years prior to this, are reported under Australian Generally Accepted Accounting Principles.
Results:
Profit after tax has fallen due to lower developer revenue, higher environmental contributions and finance charges and depreciation.
Where we are headed:
We expect to maintain our level of profit after tax in 2006-07.
Dividends Paid
Where we would like to be:
To maximise our shareholder investment to our only shareholder, the Victorian State Government, by paying dividends.
Where we are:
| Dividends paid $million | 2002-03 | 2003-04 | 2004-05 | 2005-06 |
|---|---|---|---|---|
| Actual | 90.8 | 41.6 | 41.6 | 27.7 |
Note: We do not have targets for this Sustainability Indicator because ‘Dividends paid’ is a function of other factors.
Results:
Dividends paid for the 2005-06 financial year were $27.7 million.
Where we are headed:
Dividends are expected to be similar to our 2005-06 level next year, in line with profit expectations
Debtors Over 90 Days
Where we would like to be:
To maximise our 90 day debt to industry standards, so we rely less on borrowing, resulting in lower finance charges.
Where we are:
| $ of debt over 90 days at 30 June | 2002-03 | 2003-04 | 2004-05 | 2005-06 |
|---|---|---|---|---|
| Actual | 362,000 | 357,000 | 397,000 | 494,000 |
| Target | 450,000 | 450,000 | 450,000 | 450,000 |
Results:
Our 90 day debt remained at a low level for 2005-06.
Where we are headed:
We will continue to deliver a strong result by managing debtors and offering a range of payment options for customers.
