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Overview |
Overview The group has been successful in weathering recent global economic uncertainty, enjoying a year of continuing improvement in financial performance, despite a year of difficult market conditions. The group’s central aim of maintaining a stable financial base whilst increasing the return on assets has been achieved, and the practice moves forward in 2004 with confidence. Statement of Financial Position The consolidated financial position as at June 2003 presents a strong and stable funding base to maintain steady growth across the group. A key highlight of the year was the positive and consistent performance level across all operating activities. A solid rise in profitability and steady cash flows enabled a significant component of our longer-term debt to be reduced. During the year, our consulting practice merged operations with other related investment activities within the group to form a Corporation. This move broadened the capital base, strengthened the underlying financial position of the group, and provided the means to fund future investments and support a steady growth in our core business activities. Investment and Controls Underlying financial strength is a key element of our overall business strategy and success. The net working capital position at June highlights the tighter controls over project billings and collections in all operational activities. Consistency in financial performance has provided the means for a steady flow of capital funds to maintain operational investment in leading edge technology. Strong cash performance Average cash flow from operations increased during the year against levels in the previous period – an improvement of 13 percent. Since the early 1990s, consistent collections and a sustained level of client billings have contributed to the underlying strength in the base funding and working capital position of the business. The company applies a range of critical performance controls and measures to both target and track the level of cash to working capital as a key operational strategy. Financial Risk Management NDY Financial Policies provide a strong framework for the core business, and are an important pillar of our risk management strategy. A diligent approach to corporate governance issues, combined with regular Board reviews, support the overall risk management process and help to mitigate losses and other potential business threats. Group Consolidated Results The NDY group ends the financial year in excellent shape, maintaining the drive and committed strategic direction with an improved profitability position over the previous year. Strong revenues and careful management of the operating receivables have helped to sustain the good cash flow for the period. A commitment by the shareholders to hold additional levels of retained earnings and to apply cash reserves to lower corporate debt has also improved the overall financial position of the group. Revenue Australia Core business revenues grew by 17.5 percent during the year across the Australian sector. This contribution represents 76 percent of the overall group revenue base. UK/Europe Our Northern Region has achieved strong growth in Health and Industrial sector-related engineering services. New Zealand Continued solid work flows in the commercial and residential market sectors have helped to maintain a stable revenue base for the New Zealand operation. Profitability Operational profits (Earnings Before Interest and Tax – EBIT) increased by 14.7 percent over the previous year. Summary The group’s financial strength and consistency of performance underpins the key financial goals of business – to promote business stability and longevity. Outlook With a solid level of confirmed project work, good cash reserves, a low level of borrowings and an underlying financial stability, we expect to keep growing the business and to achieve a continuing strong financial position over the next 12 months. |
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