St John Ambulance SA Inc. Annual Report 2018-2019

St John Ambulance Australia SA Inc Annual Report 2018/19 59

FINANCIALS CONTINUED

WHERE OUR MONEY COMES FROM – REVENUE Including the gain on disposal of property, plant and equipment, we generated operating revenue of $12,269k during 2018/19, $1,337k or 12% higher than in the previous year due to increased training income, higher product sales relating to defibrillators and additional grant income.

WHERE OUR MONEY GOES – EXPENSES

Revenue by category

2018/19 ($’000)

Percentage

2017/18 ($’000)

2016/17 ($’000)

2015/16 ($’000)

2014/15 ($’000)

Expenses by category

2018/19 ($’000)

Percentage

2017/18 ($’000)

2016/17 ($’000)

2015/16 ($’000)

2014/15 ($’000)

Training fees

5,445

44%

5,182

5,270

5,335

5,365

Total expenses including depreciation were $11,923k during 2018/19, $1,177k or 11% higher than 2017/18 due to net higher spend across all expenditure categories partially offset by lower property occupancy related costs.

Salaries & on-costs

5,979

50%

5,566

5,682

5,427

5,142

Merchandising

2,842

23%

2,231

1,918

1,604

1,465

Administration

1,573

13%

1,467

1,552

1,768

1,895

Grants

1,423

12%

1,146

1,266

1,231

1,059

Operational

1,238

10%

1,120

1,192

1,278

1,361

Event fees

925

8%

944

924

841

793

Merchandising

1,513

13%

1,091

856

657

602

Investments

567

5%

525

440

433

501

Depreciation

475

4%

413

590

600

608

Other

586

5%

560

873

685

443

Property

574

5%

606

709

700

715

Fundraising & donations

301

2%

239

284

141

101

Marketing

492

4%

412

382

384

399

Bequests

180

1%

106

1,354

35

43

Finance

78

1%

72

142

181

207

Total

12,269

100% 10,932

12,329

10,305

9,771

Total

11,923

100% 10,746

11,106

10,996

10,930

Salaries and on-costs comprised 50% of our total expenses of which:

Operational expenses include costs associated with training courses and vehicle, asset and event management, and these expenses collectively increased by 11% from 2017/18 primarily due to higher spend on uniforms, training consumables and manuals, and medical supplies. Merchandising costs increased by 39% from 2017/18 in line with the increase in merchandise sales volumes. Profit margins on componentry and defibrillator sales decreased by 7% and 3% respectively from 2017/18, and the profit margin on kit sales increased by 1%. The gross margin generated by merchandising was $1,329k, 17% higher than 2017/18. Administration related expenses increased by 7% from last year, mainly due to higher legal fees and costs associated with computer software maintenance, fundraising and travel, partially offset by lower spend on

professional fees during 2018/19.

The largest contributions to revenue were provided by the social enterprise activities - training fees and merchandising sales, which accounted for 68% of all revenue received. Of the other revenue sources, grants accounted for 12%, event fees 8% and investment income 5%. Training fees for 2018/19 increased by 5% from last year due to the impact of higher on-site course numbers partially offset by fewer attendees at public courses. The fees we received from on-site courses increased by 45% with these courses now accounting for 64% of our total training fees, up from 47% for 2017/18. In contrast, fees from public courses decreased by 30% from last year. The overall 5% increase in training fees was driven by higher CITB funding and an increase in regional training.

Merchandising income for 2018/19 increased by 27% from 2017/18. This increase was driven by higher defibrillator sales volumes primarily resulting from a more aggressive marketing position and increasing our promotional cycles within this product category. Grant income for 2018/19 increased by 24% from 2017/18 mainly due to the Every Heartbeat Matters funding from Australian Hotels Association SA and SA Licensed Clubs Industry for public access defibrillators in 2018/19. Event fees decreased marginally from 2017/18 by 2%, with a decrease in fees from commercial events being partially offset by an increase in fees from community. The overall decrease reflects the ongoing difficulty in resourcing these events. Event contributions over 2018/19 averaged $11.10

per hour for the hours provided by adult volunteers at all events. In comparison, average event contributions over 2017/18 were $11.82 per hour. Investment income increased by 8% from 2017/18 due mainly to an increase in managed investment fund distributions. Income from bequests increased by $74k from 2017/18. During 2018/19, significant bequests were received from the Jane Ann Rover, John Christian Sobey and Phyllis Elaine Hayles estates, for which we are very grateful.

The remaining 14% of expenses comprised spend associated with property, including all occupancy related costs, marketing and finance, as well as depreciation on property, plant and equipment assets. These expenses increased by 8% from 2017/18.

• 41% relates to social enterprise activities

• 19% relates to program delivery activities

• 40% relates to support staff activities.

DISPOSAL OF PROPERTY, PLANT AND EQUIPMENT

Merchandising, administration and operational based expenses are our other main expense categories, collectively comprising a further 36% of all expenses. Salaries and on-costs for 2018/19 increased by 7% on 2017/18 primarily due to the impact of higher average full- time equivalent (FTE) employee numbers over the 2018/19 financial year and a reduction in wages capitalised associated with the IT Systems Replacement Project.

The gain of $13k for 2018/19 was mainly due to the disposal by sale of a transit vehicle. Proceeds from the sale were $14k. This resulted in a gain on disposal of $14k. In addition, various ICT related assets were scrapped during 2018/19.