11
Financial and Economic
Financial results
In the year ended 30 June 2005, City Care's revenue grew by
$19.6 million to $82.2 million. This represents an increase in
revenue of 31.1%.
Net profit after tax was $1.52 million, a decline of $0.28 million
on the previous year. This was on earnings before interest and
taxes (EBIT) of $2.96 million.
Total equity for the year rose $3.18 million to $15.22 million
including the issue of $2.5 million of redeemable preference
shares. Based on an average equity of $14.8 million, City Care
achieved a tax paid return on equity of 10.3%, the lowest result
in 5 years.
Dividends of $0.84 million (previous year: $1.19 million) were
paid to Christchurch City Holdings Ltd during the year.
The business generated $2.58 million in cash, and $9.3 million
was re-invested in business acquisitions, new plant, equipment
and information technology.
City Care's long-term bank borrowing increased by $4.6 million
to $11.4 million.
The year ended with the ratio of shareholder funds to total
assets at 41% (previous year: 43%).
City Care is committed to being a sustainable business and, following on from previous years, this
report has been prepared with reference to the Global Reporting Initiative Sustainability Reporting
Guidelines. As a Council-owned organisation engaged in the provision of essential services for the
community, City Care considers it particularly appropriate to report on the company's social and
environmental impacts as well as its economic and financial performance.
While every effort has been taken to present accurate information throughout this report, the base
data and qualitative statements have not been externally audited and are not addressed in Audit
New Zealand's report on our financial statements.
Year Ending
$millions
ANNUAL REVENUE
Year Ending
$millions
NET OPERATING PROFIT AFTER TAX
Year Ending
Per
centage
RETURN ON AVERAGE EQUITY
PERFORMANCE SUMMARY
