City Care Performance report 2006 Page 44
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1. Sale of business unit
Effective 1 July 200 City Care Limited sold its refuse station business to the Christchurch City Council in
accordance with a sale and purchase agreement dated 30 June 200. The sale included the operations as well as
relevant plant and equipment.
Consideration of $2,84,0 was received by way of land and a rental reduction on premises leased from the
Christchurch City Council and located at 24 Milton Street, Christchurch. The non-recurring capital gain amounting
to $2,313,1 consisted of a capital gain on sale of $2,4,04 less non-deductible costs.
The refuse station business is a discontinued operation and revenues and the net surplus are disclosed by way of
separate note.
2006
$000's
2005
$000's
2. Operating revenues
Revenues
98,940
82,2
Gain on sale of property, plant and equipment
359
10
Interest income
4
99,303
82,28
3. Operating expenses
Audit fees
40
38
Amortisation
106
Depreciation
3,873
3,484
Directors' fees
125
133
Rental and operating lease costs
2,064
1,20
Bad debts written off
374
3
Movement in allowance for doubtful debts
3
(3)
Operating costs
90,262
3,3
96,847
,31
4. Continuing and discontinued activities
Continuing activities
Revenue
96,551
,28
Net surplus
784
1,23
Discontinued activities
Revenue (trading)
438
3,001
Non-recurring capital gain
2,314
-
Total revenue
2,752
3,001
Net surplus
2,569
28
Total activities
Revenue
99,303
82,28
Net surplus
3,353
1,2
For the year ended 30 June 200
notes to the
financial statements
