We have recently completed the 2020 annual report, which was signed off by Audit New Zealand on 30 April.
The annual report is a bit different than usual, as it is made up of a three-month period from 1 January 2020 until 31 March 2020 and a nine-month period from 1 April 2020 until 31 December 2020 (as we became OP Limited on the 1 of April 2020).
The combined financial result for the full 12-month period is a surplus of just short of $5.4 million. However, some of the favourable result is due to required period end accounting adjustments. Net of these adjustments, the real surplus is $3.6 million, which is 3.6% of revenue. This is a fantastic result considering the impacts of the pandemic, so please accept our thanks to everyone for helping us achieve this.
We were aided considerably by the Targeted Training and Apprenticeship Funding (TTAF), meaning that our enrolments in programmes that are eligible for TTAF were very high, resulting in extra revenue. Costs were also lower than budget with significant pandemic related savings in travel, professional development and clinical training.
While the financial result is important, the really critical factor is cash flow. For the 12-month period we had a cash deficit of $1.2 million. This was funded by increased borrowings. Some of the cash deficit was due to a delay in the receipt of some of the TTAF funds from TEC and some of it is due to expenditure on capital development.
We are now moving to focus on the 2021 year, and the forecast process is happening at present. The budget was for a break-even result for 2021, but we are hopeful that we may be able to return a small surplus due to the increased enrolments in many of our programmes. We do, however, also have increased costs due to the extra learners and capital expenditure to fund.
Once the forecast is completed we will be able to provide an update on the 2021 outlook.
Sincere thanks to everyone for helping us to achieve (or better) our financial targets – it really is appreciated.
You can find our 2020 Annual Report here
Published on 19 May 2021
Orderdate: 19 May 2021
Expiry: 19 May 2023