Landcare Research - Manaaki Whenua

Landcare-Research -Manaaki Whenua

Financial performance

<em>Actinastrum</em>. Image - Stephen Moore

Summary of group financial performance

For year ended 30 Jun: 20101 2011 2012 2012 2013
Achieved Achieved Target Achieved Target
Revenue, $m 61.66 63.44 65.912 58.423 58.96
EBIT, $m 2.19 2.93 2.10 2.164 1.57
EBIT before investment, $m 3.03 3.91 3.60 3.34 3.34
Investment, $m 0.84 0.98 1.50 1.19 1.77
Total assets, $m 50.31 50.91 52.875 45.34 47.23
Return on equity6 6.4% 8.4% 5.3% 4.9% 4.2%
Dividend $m 0.5 0.7 1.1 1.1 -
Equity ratio 58% 52% 52%7 56% 58%
Gearing 12% 13% 13% 0% 0%
Interest cover 30.9 31.3 26.8 47.5 28.3

1 2010 Return on equity and the equity ratio excludes the impact of 0% building depreciation announced in the Government’s May 2010 Budget.
2 2012 Revenue target includes Sirtrack.
3 2012 Revenue achieved excludes Sirtrack which was disclosed as a discontinued operation due to the sale of the business in November 2011.
4 2012 EBIT achieved excludes Sirtrack as this was disclosed as a discontinued operation as a result of the sale of the business in November 2011.
5 2012 Total assets target has been adjusted by adding back deferred tax liability (original SCI target 49.2).
6 2012 Return on equity target is lower because we planned significant reinvestment in the organisation. 2010 and 2011 return on equity excludes  extraordinary restructuring costs.
7 2012 Equity ratio target has been adjusted to calculate on averages rather than closing values (original SCI target 55%)


Includes science research, subsidiaries, contract work for government and commercial clients, royalties, licence fees   etc., plus income from the sale of product and the lease of assets. It excludes income from gain on sale of subsidiaries and interest on investments and from finance leases, $0.9m for 2012.


Earnings before interest and tax, and after committed business development expenditure and commercialisation expenditure.

Return on equity:

NPAT ÷ average shareholders’ funds, expressed as a percentage. NPAT is net pro.t 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 = interest bearing debt ÷ interest bearing debt   plus shareholders’ funds, expressed as a percentage. (The Minister of Finance and the Minister of Science and   Innovation each hold 50% of the shares on behalf of the public.)

Interest cover:

Interest is the cost of debt and financial leases. Interest cover = EBITDAF ÷ interest. (EBITDAF is EBIT before depreciation, amortisation and fair value adjustments.)

Where our revenue comes from 

  • Ministry of Business, Innovation and Employment’s (MBIE) Science + Innovation Group Core funding 44% – includes capability funding to maintain existing skill and to develop new science capability
  • MW Press & sundry 2% – Manaaki Whenua Press is our natural history and science book publishing and retailing business centre
  • Private & business sector 9% – principally contracted work for businesses and industry organisations
  • Universities 1% – contracted services, some paid lecturing by our staff, and rentals for university staff located in our buildings
  • Local government 3% – contracted work for regional, district and city councils
  • Central government 15% – services contracted by government departments including DOC, MfE and MPI
  • The carboNZero programmeCertTM 4% – which provides certification services for greenhouse gas reduction and mitigation
  • CRIs 7% – research subcontracted to us in collaborative programmes
  • International 1% – development projects funded by donor agencies, international consultancy projects
  • MBIE contestable funding sources 15%

Where our revenue goes 

  • Investment 2.2% – support for technologies and services including those advancing through our commercialisation pipeline
  • Other operating costs 16.6% – includes electricity, carbon credits, software licences, insurance, consumables, and lease costs
  • Interest & non-operating costs 0.2%
  • Depreciation 7% – includes accounting depreciation on buildings, science equipment and computers
  • Travel & vehicles 5.2% – 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 .eldwork, and cars and vans for road use
  • Subcontracts 12% – research subcontracted to other research providers, including CRIs and universities in collaborative research programmes
  • Staff training 1.1% – includes conferences, training courses and support for postgraduate study (2.49% of the total payroll)
  • Employee remuneration 52.8% – includes staff in management, science, support roles, business development and carboNZero Holdings