After another year of remarkable performance, I am pleased to report Citywide is in an excellent position for the year ahead. A combination of strong organic and acquisition-led growth has seen Citywide further establish its leadership in the local government physical services sector.
In fact, Citywide has proudly recorded its 10th consecutive year of growth. This is an outstanding achievement of which few companies our size can claim.
Citywide commenced the financial year with an articulated strategy to identify and acquire new businesses that either extended our reach into markets we serve, or added significant capacity to the business.
The acquisition of Sterling Group Services in Sydney NSW, achieves both these objectives, opening doors to new income streams from major landscaping works and other non-government contracts while further establishing our grounds maintenance presence across Sydney and along the NSW Central Coast.
Across our three divisions, the Company now administers well over 100 open space, infrastructure and environmental contracts throughout Victoria, New South Wales and the ACT, with a combined value of over $150 million per annum.
These results are a testament to the combined efforts of our people – an outcome that is very much greater than the sum of its parts. Citywide has long stated that its people are the Company’s greatest asset.
Citywide Infrastructure division grew its commercial operations 30% this financial year and surpassed $100 million in revenue for the first time in the Company’s history, including $25 million in capital works. The year was capped off with a successful tender for the provision of road resurfacing services for multinational Company, Transurban, on its flagship Melbourne CityLink toll road. Projected to be in the vicinity of 400,000 m2 of asphalt works over the next 24 months, this contract demonstrates recognition and approval of Citywide’s specialist road maintenance expertise and surfacing experience.
Capitalising on $12m of new business in 2009/10, Citywide Open Space had a successful year in 2010/11. The Company holds three of Australia’s most sought after contracts: maintenance of capital city gardens in Melbourne, Sydney and Canberra. We will continue to leverage this leadership position, which no other competitor in Australia can claim, to expand tree, park and turf operations.
Citywide’s Environmental division delivered solid earnings on the back of a strong year that saw the division win new business while maintaining key relationships with existing clients. During the fiscal year, the waste business expanded to over 50 waste collection vehicles across twelve municipal contracts. A major vote of confidence in Citywide’s services came from the City of Moreland, as the Company was re-awarded the waste services contract for a further seven years. The win is a credit to Citywide’s dedicated staff as much as it is Moreland’s, who put their trust in us. It is wins like these that explain the Company’s outstanding 90% contract retention rate.
Safety is paramount to our organisation and, at financial year’s end, I can report that Citywide provides one of the safest workplaces in its sector, based on independently measured benchmarks. Citywide’s close monitoring of high-risk occupational areas has seen the Company-wide Lost Time Injury Frequency Rate (LTIFR) level register at 2.49/1.65: an incredible effort considering the industry average is triple this figure.
It is pleasing to look back on a year in which strong financial performance was matched by safety, improved environmental management and community engagement. $200 million in revenue, 10 years of consistent growth, 1000 employees: these are important milestones in the development of our business of which every Citywide employee can be proud.
To download a copy of the annual report, please go to