Audited financial statements

Statement of Financial Performance

FOR THE YEAR ENDED 30 JUNE: NOTE CONSOLIDATED   PARENT
2005 2005 2004   2005 2005 2004
  BUDGET       BUDGET  
$000s $000s $000s   $000s $000s $000s
Total operating revenue 1   50,196 45,166   45,481 46,719 42,790
Total operating expenses 2 (47,044) (49,228) (43,825)   (44,781) (46,569) (41,626)
Operating surplus, before                
Investment project expenditures, interest & income tax   886 968 1,341   700 150 1,164
Interest expense   (414) (496) (186)   (414) (496) (186)
Interest & other income/(expenses) 3 52 - 109   (258) 140 624
Investment project expenditures 3 (304) (218) (1,210)   (256) (218) (1,176)
Amortisation of goodwill on consolidation 9 (105) - (15)   - - -
Net surplus / (deficit) before taxation expense   115 254 39   (228) (424) 426
Income tax expense 4 (134) (287) (72)   (123) (167) (200)
Net surplus/(deficit) for the year 5 (19) (33) (33)   (351) (591) 226
Net surplus/(deficit) comprises:                
Parent company interest   10 (33) (5)   (351) (591) 226
Minority interest   (29) - (28)   - --  
 

Statement of Movements in Equity

 
FOR THE YEAR ENDED 30 JUNE: NOTE CONSOLIDATED   PARENT
2005 2005 2004   2005 2005 2004
  BUDGET       BUDGET  
$000s $000s $000s   $000s $000s $000s
Total recognised revenue and expenses                
Net surplus/(deficit) for the year:                
Parent company interest   10 (33) (5)   (351) (591) 226
Minority interest   (29)   (28)   - - -
Translation difference   (4) - (9)   - - -
    (23) (33) (42)   (351) (591) 226
Minority interest in subsidiary   (29) - 86   - - -
Equity at beginning of year   22,415 22,259 22,371   21,663 21,375 21,437
Comprising:                
Parent company interest   22,356 22,259 22,371   21,663 21,375 21,437
Minority interest   59 - -   - - -
Equity at end of year   22,363 22,226 22,415   21,312 20,784 21,663
Comprising:                
Parent company interest   22,363 22,226 22,356   21,312 20,784 21,663
Minority interest   - - 59   - - -

The accompanying Accounting Policies and Notes form part of these Financial Statements.

Statement of Financial Position
AS AT 30 JUNE: NOTE CONSOLIDATED   PARENT
2005 2005 2004   2005 2005 2004
  BUDGET       BUDGET  
$000s $000s $000s   $000s $000s $000s
Current assets                
Cash balances   68 397 1,309   505 111 824
Receivables 6 6,703 5,950 5,758   6,001 5,250 5,273
Inventories   885 750 588   75 100 77
    7,656 7,097 7,655   6,581 5,461 6,174
Non-current assets                
Deferred taxation 4 910 954 935   910 954 1,033
Investments   - 34 -   221 284 250
Property, plant & equipment 7 29,750 29,730 30,527   29,239 29,248 30,195
Patents   26 200 21   26 200 21
Library asset 8 1,172 1,220 1,169   1,172 1,220 1,169
Intangible assets 9 - - 105   - - -
Loans to subsidiaries   - - -   - - 412
    31,858 32,138 32,757   31,568 31,906 33,080
Total assets   39,514 39,235 40,412   38,149 37,367 39,254
Current liabilities                
Creditors 10 4,912 4,060 5,227   4,859 3,950 5,157
Borrowings repayable within 12 months 11 5,499 3,000 3,062   5,499 3,000 3,062
Provisions—employee entitlements   3,432 3,568 3,446   3,328 3,377 3,332
Revenue in advance 12 2,897 1,925 1,822   2,740 1,800 1,601
    16,740 12,553 13,557   16,426 12,127 13,152
Non current liabilities              
Borrowings 11 - 4,000 4,000   - 4,000 4,000
Provisions—employee entitlements   411 456 440   411 456 440
411 4,456 4,440   411 4,456 4,440
Total liabilities   17,151 17,009 17,997   16,837 16,583 17,591
Net assets   22,363 22,226 22,415   21,312 20,784 21,663
Equity                
Attributable to shareholders of the company   22,363 22,226 22,356   21,312 20,784 21,663
Attributable to minor shareholders of the company   - - 59   - - -
  13 22,363 22,226 22,415   21,312 20,784 21,663

 

Signed - Rob Fenwick  Signed - Anne Urlwin 
RGM Fenwick
Chairman of Directors
9 September 2005
AJ Urlwin
Director
9 September 2005

The accompanying Accounting Policies and Notes form part of these Financial Statements.

Statement of cash flows

FOR THE YEAR ENDED 30 JUNE: NOTE CONSOLIDATED   PARENT
2005 2005 2004   2005 2005 2004
  BUDGET       BUDGET  
$000s $000s $000s   $000s $000s $000s
Net cash from / (used in) operating activities                
Cash provided from:                
Receipts from customers   48,172 49,901 45,057   45,940 46,469 42,235
Interest income received   19 - 89   8 - 69
Dividend income received   - - -   90 140 535
    48,191 49,901 45,146   46,038 46,609 42,839
Cash applied to:                
Payments to suppliers & employees   (44,132) (45,109) (41,670)   (41,469) (42,477) (39,423)
Interest expense paid   (414) (496) (169)   (414) (496) (169)
Income tax paid   (221) (270) -   (50) - -
    (44,767) (45,875) (41,839)   (41,933) (42,973) (39,592)
  5 3,424 4,026 3,307   4,105 3,636 3,247
Net cash from /(used in) investing activities                  
Cash provided from:                
Proceeds from sales of non-current assets   64 - 33   64 - 33
Repayment of loans by related parties   - - -   125 - -
  64 - 33   189 - 33
Cash applied to:                
Acquisition of shares in subsidiary   - - (34)   (71) - -
Loan to related party   - - -   - - (412)
Acquisition of non-current assets   (3,163) (2,781) (12,656)   (2,980) (2,700) (12,592)
  (3,163) (2,781) (12,690)   (3,051) (2,700) (13,004)
  (3,099) (2,781) (12,657)   (2,862) (2,700) (12,971)
Net cash from / (used in) financing activities                
Cash provided from:                
Proceeds from borrowings   - - 7,062   - - 7,062
Cash applied to:                
Repayments of borrowings   (1,562) (1,000) -   (1,562) (1,000) -
  (1,562) (1,000) 7,062   (1,562) (1,000) 7,062
Net decrease in cash balances   (1,237) 245 (2,288)   (319) (64) (2,622)
Effect of exchange rate fluctuations on cash   (4)   (11)        
Total movements in cash balances   (1,241) 245 (2,299)   (319) (64) (2,662)
Cash balances at beginning of year   1,309 152 3,608   824 175 3,486
Cash balances at end of year   68 397 1,309   505 111 824

The accompanying Accounting Policies and Notes form part of these Financial Statements.

 Statement of accounting policies for the year ended 30 June 2005

Business entity

The financial statements of Landcare Research New Zealand Limited have been prepared in accordance with the Financial Reporting Act 1993, the Companies Act 1993, the Crown Research Institutes Act 1992, and the Public Finance Act 1989.

The consolidated financial statements are those of Landcare Research New Zealand Limited, including its fully owned subsidiaries, Sirtrack Limited, Landcare Research International Limited Group, Landcare Research US Limited and Fertility Control Limited which also have a balance date of 30 June.

Measurement base

The measurement and reporting of profit and financial position is based on historical cost.

Accounting policies

The following specific accounting policies, which materially affect the measurement of profit and financial position, have been consistently applied.

  1. Principle of consolidation

    1. The consolidated financial statements include those of the parent company and its subsidiaries, accounted for using the line by line consolidation method. All intercompany transactions, balances and unrealised profits and losses on transactions between group members have been eliminated.
    2. Goodwill arising on consolidation will be amortised over a 10-year period.

  2. Current assets

    1. Accounts receivable Accounts receivable are valued at expected net realisable value.
    2. Stock Stocks are valued at the lower of cost on a weighted average price of stock on hand, and net realisable value.
    3. Work in Progress Work in Progress is valued at the lower of cost and net realisable value.

  3. Fixed assets

    Completed buildings, plant, motor vehicles, furniture and tools are recorded at cost, less accumulated depreciation. Land and buildings under construction are recorded at cost. General use library assets were introduced in 2002/03 at depreciated replacement cost that is treated as deemed cost.

  4. Depreciation

    After taking into account likely residual values, all depreciable assets are depreciated on a straight line basis over their estimated economic lives.

Depreciation Rates: Buildings 1.67–10%
  Plant and equipment 5–20%
  IT equipment 25%
  Motor vehicles 25%
  Furniture and fittings 10%
  Office equipment 20%
  Library books and periodicals 20–50%
  Rare books collection 1%
  1. Revenue

    Revenue shown in the Statement of Financial Performance comprises amounts earned by the Company for goods and services supplied tocustomers in the ordinary course of business during the year. Income received for goods and services, which have not yet been supplied to customers, has been recognised as Revenue in Advance.

  2. Taxation

    Taxation is provided in the financial statements on the basis of the estimated taxation payable on the taxable income after available deductions and concessions.

Deferred taxation resulting from timing differences is recognised using the liability method on a comprehensive basis. A deferred tax benefit arising from timing differences is only recognised if there is a virtual certainty of realisation.

Goods and Services Tax

The Statement of Financial Performance and Statement of Cash Flows have been prepared so that all components are stated exclusive of GST. All items in the Statement of Financial Position are stated net of GST with the exception of receivables and payables which are stated with GST included.

  1. Foreign currency translation

    Transactions denominated in a foreign currency are recorded using the exchange rate at the settlement date. Realised and unrealised gains or losses on foreign currency transactions are dealt with in the Statement of Financial Performance. Foreign currency balances are converted at the mid point TT rate applying at balance date.

  2. Intellectual property

    No value is ascribed in the Statement of Financial Position to intellectual property assets. Revenue received from the use of intellectual property assets is recognised when earned, and the costs incurred in the maintenance of intellectual property assets are expensed when incurred.

  3. Financial instruments

Revenue and expenses in relation to all financial instruments are recognised in the Statement of Financial Performance. Financial instruments carried on the Statement of Financial Position include cash and bank balances, investments, receivables, trade creditors, and borrowings. These instruments are carried at their estimated fair value.

  1. Leases

    The company leases certain plant and equipment, motor vehicles, and land and buildings. Operating lease payments, where the lessors effectively retain substantially all the risks and benefits of ownership of the lease items, are included in the determination of the net surplus in equal instalments over the lease term.

  2. Employee entitlements

    Liabilities for annual leave, time in lieu, long service leave and retirement leave are accrued and recognised in the Statement of Financial Position. The provisions are accrued in annual instalments adequate to meet such liabilities as they fall due.

Changes in accounting policies

All policies have been applied on bases consistent with those used in the previous year.


Annual Report 2004/05