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Housing : June 2009
HIA CONCISE FINANCIAL REPORT For the Year Ended 31 December 2008 Discussion & Analysis FOR THE HOUSING INDUSTRY ASSOCIATION LIMITED ACN 004 631 752 The HIA Limited group of companies reported a consolidated surplus of $2.06 million for the year ending 31 December 2008. This compares with a $2.56 million surplus for the 2007 year. Income Statement 2008 was a year of increasing financial challenges as the Australian economy and building industry started to feel the effects of the global economic downturn. A brief summary of the financial highlights includes: • An increase in group turnover of 4 per cent to $92.3 million. • Major contributors to growth in revenue were HIA Apprentices, HIA Safety Services, Homes Ideas Centres and Membership Renewals. • HIA continued efforts to address skill shortages in the building trades through HIA Apprentices and Youthbuild. The Association finished the year with 1,100 apprentices and provided 265 fully qualified tradespeople to the industry. • Membership renewals revenue in 2008 was up by 6 per cent on the previous year. • Hunter Home Ideas Centre commenced operations at the end of August providing members with an excellent facility to promote directly to consumers. ACT/Sthrn NSW and Hunter Centres had 78 and 61 exhibitors respectively at the end of the year. Balance Sheet The Association’s balance sheet grew in 2008, with net assets increasing to $77.5 million up from $75.4 million in 2007. This was largely due to a reduction in liabilities. The major movement in the liabilities was due to the repayment of a significant portion of our bank loan while the reduction in the asset balance was the consequence of disposal of redundant land and buildings in Hunter. HIA continues to maintain a very strong balance sheet with more than $77 million in net assets and 4.65 dollars of asset for every dollar of liability (up from 3.36 dollars in the previous year). Cash Flow HIA concluded the year with a $1.8 million cash balance which was higher than $1.3 million reported in 2007. The loan balance at the end of 2008 was $11.5 million which was down from $17 million at the end of 2007. This was consistent with the Board’s debt retirement strategy and the reduction was aided by the increase in revenue, sale of property, a lower level of capital expenditure and reduction in trade debtors. Net cash inflows from operating activities in 2008 were $4.5 million, a decrease on the net inflows of $5.6 million in 2007. Net cash flows from investing activities provided an inflow of $1.6 million in 2008 compared with an outflow of $13.1 million in 2007. Net cash flow from financing activities in 2008 provided an outflow of $5.5 million, compared with an outflow of $7.0 million in 2007. This provided the balance of the funding for the growth in members’ facilities. HOUSING JUNE 2009 81