TOTALCARE INDUSTRIES LIMITED

Objectives

Totalcare Industries Limited is a provider of integrated solutions and services in the areas of asset and infrastructure management and maintenance, and health services.

2003-04 Highlights

Strategic and operational issues to be pursued in 200304 include:

  • minimising financial risk to the Government;
  • providing support services to the Government; and
  • protecting the rights of existing Totalcare employees and that industrial relations matters be addressed in a fair and equitable manner.

In the second half of 2002 the Government reviewed the prospects of Totalcare’s various business elements and in March 2003 appointed a Working Group to provide advice to the Government on how Totalcare should best achieve the Government’s objectives.

Totalcare
Statement of Financial Performance
2002-03 / 2002-03 / 2003-04 / 2004-05 / 2005-06 / 2006-07
Budget / Est.Outcome / Budget / Var / Estimate / Estimate / Estimate
$'000 / $'000 / $'000 / % / $'000 / $'000 / $'000
Revenue
13 445 / User Charges - Non ACT Government / 24 691 / 24 879 / 1 / 25 265 / 25 662 / 26 015
38 864 / User Charges - ACT Government / 33 567 / 38 996 / 16 / 45 078 / 51 369 / 52 776
92 / Interest / 215 / 94 / -56 / 97 / 99 / 101
52 401 / Total Ordinary Revenue / 58 473 / 63 969 / 9 / 70 440 / 77 130 / 78 892
Expenses
17 631 / Employee Expenses / 18 183 / 17 971 / -1 / 18 317 / 18 776 / 19 242
1 732 / Superannuation Expenses / 1 758 / 1 767 / 1 / 1 812 / 1 859 / 1 905
5 203 / Supplies and Services / 3 468 / 1 965 / -43 / 2 037 / 2 109 / 2 233
5 107 / Depreciation and Amortisation / 5 330 / 5 644 / 6 / 5 772 / 5 912 / 5 912
64 / Borrowing Costs / 1 016 / 181 / -82 / 181 / 181 / 181
19 994 / Cost of Goods Sold / 28 992 / 33 244 / 15 / 38 516 / 43 963 / 44 833
1 887 / Other Expenses / 1 751 / 1 929 / 10 / 1 974 / 2 019 / 2 069
51 618 / Total Ordinary Expenses / 60 498 / 62 701 / 4 / 68 609 / 74 819 / 76 375
783 / Operating Result / -2 025 / 1 268 / 163 / 1 831 / 2 311 / 2 517
25 057 / Total Equity From Start of Period / 20 439 / 18 414 / -10 / 19 682 / 21 513 / 23 824
25 840 / Total Equity At The End of Period / 18 414 / 19 682 / 7 / 21 513 / 23 824 / 26 341
Totalcare
Statement of Financial Position
Budget / Est.Outcome / Planned / Planned / Planned / Planned
as at 30/6/03 / as at 30/6/03 / as at 30/6/04 / Var / as at 30/6/05 / as at 30/6/06 / as at 30/6/07
$'000 / $'000 / $'000 / % / $'000 / $'000 / $'000
Current Assets
4 528 / Cash / 3 468 / 2 594 / -25 / 1 455 / -20 / 1 711
12 176 / Receivables / 7 326 / 8 760 / 20 / 9 760 / 11 163 / 12 566
0 / Investments / 0 / 1 500 / # / 2 000 / 2 500 / 3 000
1 350 / Inventories / 665 / 954 / 43 / 1 154 / 1 354 / 1 554
1 333 / Other / 1 652 / 2 152 / 30 / 2 401 / 2 351 / 2 301
19 387 / Total Current Assets / 13 111 / 15 960 / 22 / 16 770 / 17 348 / 21 132
Non Current Assets
1 000 / Investments / 700 / 1 000 / 43 / 3 500 / 6 500 / 5 000
20 368 / Property, Plant and Equipment / 20 448 / 20 254 / -1 / 20 477 / 20 810 / 21 143
0 / Intangibles / 32 / 32 / - / 32 / 32 / 32
250 / Other / 0 / 0 / - / 0 / 0 / 0
21 618 / Total Non Current Assets / 21 180 / 21 286 / 1 / 24 009 / 27 342 / 26 175
41 005 / TOTAL ASSETS / 34 291 / 37 246 / 9 / 40 779 / 44 690 / 47 307
Current Liabilities
5 365 / Payables / 6 788 / 8 223 / 21 / 8 973 / 9 623 / 10 273
1 048 / Finance Leases / 2 426 / 1 926 / -21 / 1 481 / 1 983 / 2 485
2 791 / Employee Benefits / 2 163 / 2 163 / - / 2 163 / 2 163 / 2 163
0 / Other / 1 472 / 1 472 / - / 1 472 / 1 472 / 1 472
9 204 / Total Current Liabilities / 12 849 / 13 784 / 7 / 14 089 / 15 241 / 16 393
Non Current Liabilities
4 225 / Finance Leases / 953 / 1 705 / 79 / 3 102 / 3 550 / 2 498
1 736 / Employee Benefits / 2 075 / 2 075 / - / 2 075 / 2 075 / 2 075
5 961 / Total Non Current Liabilities / 3 028 / 3 780 / 25 / 5 177 / 5 625 / 4 573
15 165 / TOTAL LIABILITIES / 15 877 / 17 564 / 11 / 19 266 / 20 866 / 20 966
25 840 / NET ASSETS / 18 414 / 19 682 / 7 / 21 513 / 23 824 / 26 341
REPRESENTED BY FUNDS EMPLOYED
-15 646 / Accumulated Funds / -23 072 / -21 804 / 5 / -19 973 / -17 662 / -15 145
41 486 / Reserves / 41 486 / 41 486 / - / 41 486 / 41 486 / 41 486
25 840 / TOTAL FUNDS EMPLOYED / 18 414 / 19 682 / 7 / 21 513 / 23 824 / 26 341
Totalcare
Statement of Cashflows
2002-03 / 2002-03 / 2003-04 / 2004-05 / 2005-06 / 2006-07
Budget / Est.Outcome / Budget / Var / Estimate / Estimate / Estimate
$'000 / $'000 / $'000 / % / $'000 / $'000 / $'000
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts
58 955 / User Charges / 58 310 / 61 057 / 5 / 67 524 / 74 013 / 75 773
92 / Interest Received / 204 / 94 / -54 / 97 / 99 / 101
5 810 / Other Revenue / 5 810 / 6 285 / 8 / 6 953 / 7 624 / 7 624
64 857 / Operating Receipts / 64 324 / 67 436 / 5 / 74 574 / 81 736 / 83 498
Payments
20 260 / Related to Employees / 20 361 / 20 032 / -2 / 20 423 / 20 929 / 21 441
4 871 / Related to Supplies and Services / 9 649 / 7 858 / -19 / 7 690 / 7 762 / 7 886
64 / Borrowing Costs / 750 / 181 / -76 / 181 / 181 / 181
34 105 / Other / 30 065 / 33 241 / 11 / 39 376 / 45 544 / 46 464
59 300 / Operating Payments / 60 825 / 61 312 / 1 / 67 670 / 74 416 / 75 972
5 557 / NET CASH INFLOW/(OUTFLOW) FROM OPERATING ACTIVITIES / 3 499 / 6 124 / 75 / 6 904 / 7 320 / 7 526
CASH FLOWS FROM INVESTING ACTIVITIES
Receipts
119 / Proceeds from Sale of Property, Plant & Equipment / 119 / 90 / -24 / 90 / 90 / 90
0 / Proceeds from Sale/Maturities of Investments / 0 / 0 / - / 0 / 0 / 3 000
119 / Investing Receipts / 119 / 90 / -24 / 90 / 90 / 3 090
Payments
3 387 / Purchase of Property, Plant and Equipment / 3 387 / 5 540 / 64 / 6 085 / 6 335 / 6 335
1 000 / Purchase of Investments / 1 000 / 0 / -100 / 0 / 0 / 0
4 387 / Investing Payments / 4 387 / 5 540 / 26 / 6 085 / 6 335 / 6 335
-4 268 / NET CASH INFLOW/(OUTFLOW) FROM INVESTING ACTIVITIES / -4 268 / -5 450 / -28 / -5 995 / -6 245 / -3 245
CASH FLOWS FROM FINANCING ACTIVITIES
Payments
0 / Repayment of Borrowings / 1 700 / 0 / -100 / 0 / 0 / 0
1 048 / Repayment of Finance Lease / 1 048 / 1 548 / 48 / 2 048 / 2 550 / 2 550
1 048 / Financing Payments / 2 748 / 1 548 / -44 / 2 048 / 2 550 / 2 550
-1 048 / NET CASH INFLOW/(OUTFLOW) FROM FINANCING ACTIVITIES / -2 748 / -1 548 / 44 / -2 048 / -2 550 / -2 550
241 / NET INCREASE/(DECREASE) IN CASH HELD / -3 517 / -874 / 75 / -1 139 / -1 475 / 1 731
4 287 / CASH AT BEGINNING OF REPORTING PERIOD / 6 985 / 3 468 / -50 / 2 594 / 1 455 / -20
4 528 / CASH AT THE END OF THE REPORTING PERIOD / 3 468 / 2 594 / -25 / 1 455 / -20 / 1 711

Notes to the Budget Statements

Following the outcome of the Working Group process and the implementation of any subsequent Government decisions, the 200304 Budget year and forward year estimates may need to be varied.

The financial statements for Totalcare have been prepared on the following basis:

For the 200203 estimated outcome: these have been provided by Totalcare as the latest estimated outcome for 200203.

For the 200304 Budget and forward years: due to the uncertainty about the outcomes of the current Working Group investigation and subsequent Government decisions, the technical estimates included imply no policy or activity changes. Estimates have, however, been adjusted for the flow through of the 200203 estimated outcome as provided by Totalcare. This represents a no change basis.

Statement of Financial Performance

  • user charges: the increase of $5.949m in the 200203 estimated outcome from the original budget is primarily due to increased sales in the Fleet, Linen and Sterilisation business units as well as increased revenue from the Facilities Management Business from work generated by the January 2003 bushfire;
  • interest: the increase of $0.123m in the 200203 estimated outcome from the original budget is primarily due to higher than anticipated average cash and investment balances;
  • employee expenses: the increase of $0.552m in the 200203 estimated outcome from the original budget is due to increased activity as reflected above in user charges;
  • supplies and services: the decrease of $1.735m in the 200203 estimated outcome from the original budget reflects that some items for expense have now included in cost of goods sold;
  • depreciation: the increase of $0.223m in the 200203 estimated outcome from the original budget reflects the capital expenditure during the 200203 financial year;
  • borrowing costs: the increase of $0.952m in the 200203 estimated outcome from the original budget is due to revised accounting methodology for finance leases within the fleet entity; and
  • cost of goods sold: the increase of $8.998m in the 200203 estimated outcome from the original budget is primarily due to increased activity reflected above in user charges.
Statement of Financial Position
  • cash and investments: the decrease of $1.360m in the 200203 estimated outcome from the original budget is primarily due to decreased profitability;
  • receivables: the decrease of $4.850m in the 200203 estimated outcome from the original budget is due to improved receivables management to assist cashflow control;
  • other current assets: the increase of $0.319m in the 200203 estimated outcome from the original budget is due increased prepayments;
  • payables: the increase of $1.423m in the 200203 estimated outcome from the original budget is primarily due to better enforcement and management of cashflows;
  • current and non-current finance leases: the decrease of $1.894m in the 200203 estimated outcome from the original budget is primarily due to revised accounting methodology for finance leases; and
  • current and non-current employee benefits: the decrease of $0.289m in the 200203 estimated outcome from the original budget is due to redundancies of long term employees that occurred during the 2002-03 financial year.
Statement of Cash Flows
  • net cash from operating activities: the decrease of $2.058m in the 200203 estimated outcome from the original budget is primarily due to decreased profitability; and
  • net cash from financing activities: the decrease of $1.700m in the 200203 estimated outcome from the original budget is due to the repayment of a borrowing that was to occur in 200102, but took place in 200203.

2003-04 Budget Paper No.41Totalcare Industries Limited