Landcare Research - Manaaki Whenua

Landcare-Research -Manaaki Whenua

Financial summary

Morgan Coleman about to dine with a view

Morgan Coleman about to dine with a view

The accounts (for parent and consolidated group) and audit report are in Part 2 of our annual report and also available in full on our website. Those accounts plus this summary sustainability report constitute our statutory annual reporting responsibilities.

Revenue, $m 52.76 56.07 55.10 60.25 62.26
Net revenue, $m 46.43 49.52 52.70 53.13 55.07
EBIT, $m 1.70 1.43 0.8 2.36 2.28
EBIT margin 3.2% 2.5% 1.5% 3.9% 3.7%
Total assets, $m 42.28 44.58 45.41 48.35 45.98
Return on equity 3.4% 2.5% 1.2% 5.3% 6.4%
Equity ratio 56% 60% 59% 59% 62%
Gearing 19% 13% 13% 13% 6%
Interest cover 4.6 3.4 2.2 7.2 9.7

1 Prepared under previous generally accepted accounting practice.
2 Prepared under NZ IFRS from 2008 onwards.
3 2009 target excludes FRST subcontracts.
4 2010 target, gearing is calculated based on net debt and return on equity excludes extraordinary restructuring costs.


Includes science research, contract work for the government and commercial clients, royalties, licence fees etc., plus income from the sale of product and the lease of assets. It excludes income from interest on investments and from finance leases, $207k for 2009 making total revenue $60.454m ($60.5m).

EBIT margin

Earnings before interest and tax, and after committed business development expenditure and commercialisation expenditure. It excludes restructuring costs.

Return on equity

NPAT ÷ average shareholders’ funds, expressed as a percentage. NPAT is net profit after tax. Shareholders’ funds include share capital and retained earnings.

Equity ratio

Average shareholders’ funds ÷ average total assets.


Financial debt includes all interest–bearing liabilities. Gearing = financial debt ÷ financial debt plus shareholders’ funds, expressed as a percentage. (The Minister of Finance and Minister of Research, Science and Technology each hold 50% of the shares on behalf of the public.)

Interest cover

Interest is the cost of debt and financial leases. Interest cover = EBIT ÷ interest.

Where our revenue comes from

  • Foundation for Research, Science and Technology (FRST) 45% – contestably funded research programmes, negotiated funding and long–term OBIs
  • Universities 2% – contracted services, some paid lecturing by our staff, and rentals for university staff located in our buildings
  • Private & business sector 11% – principally contracted work for businesses and private organisations including the Animal Health Board
  • International 2% – development projects funded by donor agencies, international consultancy projects
  • CRIs 3% – research subcontracted to us in collaborative programmes
  • Central government 16% – services contracted by government departments including DOC, MfE and MAF
  • Local government 3% – contracted work for regional, district and city councils
  • Sirtrack 9% – wholly owned subsidiary, which develops and produces telemetry equipment for tracking wildlife
  • MW Press & sundry 2% – Manaaki Whenua Press is our natural history and science book publishing and retailing business centre
  • Capability Fund 7% – MoRST funding used to maintain existing and develop new science & technology capability

Where our revenue goes

  • Science payroll 38% – includes staff in science, technical and science support roles
  • Travel & vehicles 5% – all vehicle and air travel by our staff, including the cost of leased vehicles. Landcare Research runs a mixed fleet of vehicles including 4WD and quad bikes for fieldwork, and cars and vans for road use
  • Taxation 1%
  • Other operating costs 18% – includes electricity, carbon credits, software licences, insurance, consumables, and lease costs
  • Investment & commercialisation 5% – support for technologies and services including those advancing through our commercialisation pipeline
  • Staff training 1% – includes conferences, training courses and support for postgraduate study (2.2% of the total payroll)
  • Depreciation 7% – includes depreciation on buildings, science equipment and computers
  • Subcontracts 12% – research subcontracted to other research providers, including CRIs and universities in collaborative research programmes
  • Interest & non–operating costs 1%
  • Support payroll 10% – includes staff in management, information services, administration, HR, finance and communication roles

On the web